riole Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and Lusage and price expectations. Direct materials Direct labor 10 square yards per unit 1.1 DL hours per unit -) @ $4/square yard @$15/DL hour roughout the year, Oriole used 32,445 square yards of fabric in the process of making 3,150 tents. The company had originally anned to produce and sell 2,850 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 34,300 square ards of canvas at $4.15 per square yard. Oriole's DL cost totaled $54,432 for the 3,402 hours that were actually used.
Q: Crane Corporation, an amusement park, is considering a capital investment in a new exhibit. The…
A: Introduction:Net present value (NPV) is the difference between the current value of cash and the…
Q: Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost…
A: The budget is prepared to estimate the requirements for the period. The activity variance is…
Q: Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on…
A: An asset or item purchased with the intention of earning income or appreciating in value is called…
Q: In October, Crane Company reports 22,260 actual direct labor hours, and it incurs $125,080 of…
A: Total overhead variance is the difference between standard manufacturing overhead cost for actual…
Q: How many units are estimated to be sold if ABC Co., has a planned production of 890,724, a desired…
A: Sales unit is the number of units sold during the period. It is calculated as number of units in…
Q: 1.The ________ conflict-management style is when both parties give up something of importance to…
A: The objective of the first question is to identify the conflict-management style where both parties…
Q: Required Information [The following information applies to the questions displayed below.] The fixed…
A: The flexible budget is prepared for actual level of production on the basis of standard rates of…
Q: An investment will pay $20,400 at the end of the first year, $30,400 at the end of the second year,…
A: The question is related to Time Value of Money. The concept of Time Value of Money, a $1 received…
Q: 19. Lantz Company has provided the following information: Cash sales totaled $255,000. Credit sales…
A: An operating income statement, also known as an income statement or profit and loss statement…
Q: Steadfast Construction Ltd. builds apartment buildings & uses the percentage of completion method…
A: Accounting for long-term contracts is the one where we recognize revenue and costs associated with a…
Q: Presented below is information for Larkspur, Inc. for the month of January 2022. Cost of goods sold…
A: The income statement is prepared to record the revenue and expenses for the current period. The…
Q: 1. Having a clean electronic image includes: A. Maintaining a professional voice mail message…
A: The first question is about understanding what constitutes a clean electronic image. A clean…
Q: The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. Required:…
A: FICA taxes include Social Security and Medicare contributions. These taxes are deducted from the…
Q: On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as…
A: Interest would be capitalized on weighted average accumulated expenditures and capitalization rate…
Q: Carlos Consulting Inc. provides financial consulting and has collected the following data for the…
A: Budget is the estimation of revenue and expenses prior to starting the operation. To manage the…
Q: se the Present Value tables found in Appendix E, of your textbook, to answer the following…
A: Cost of borrowing refers to the expense that is incurred during the life of the project at a…
Q: Which of the following is false? A. A liability is created when cash is received prior to delivery…
A: According to the revenue recognition principle revenue is recognized when goods are delivered and…
Q: FG Ltd has a functional currency of Rands it has decided to present the financial statements in the…
A: The process of translating one currency into another is known as currency translation. It is…
Q: Lloyd Company produces music boxes. The standard factory overhead cost at 100% of normal capacity is…
A: Variance arises when the actual costs differ from the standard costs. The results are favorable…
Q: CN/ MVV > Mastery Problem Instructions Tumner Excavation maintains a checking account and has…
A: Cash Book :Cash book is one of the types of subsidiary book, in which only cash related transactions…
Q: Venice Textiles produces cloth. The inputs are fabric, labor, and overhea period show the following:…
A: The efficiency of fabric utilization in the production of cloth is measured by partial fabric…
Q: Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $152,000. The…
A: The question is based on the concep of Depreciation Accounting.Depreciation is the decrease in the…
Q: Exercise 11-10 (Algo) Make or Buy Decision [LO11-3] Futura Company purchases the 75,000 starters…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: Recommendations on how government accounting may be improved in Barbados.
A: Government accounting is the process of recording, analyzing, and reporting the financial…
Q: Required information The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless…
A: The main purpose of Standard costing is to compare your actual performance with these standards and…
Q: Critically discuss how Ford provides social and environmental accounting.
A: The objective of this question is to critically discuss how Ford Motor Company, one of the world's…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: When there is a resource which is restrained then instead of simply calculating contribution margin…
Q: Martinez Company's ending inventory includes the following items. Cost per Market per Unit Unit $55…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Kristen Lu purchased a used automobile for $25,950 at the beginning of last year and incurred the…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…
A: Income Statement An income statement is a financial statement showing a…
Q: Adams Company makes fine jewelry that it sells to department stores throughout the Unite the two…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Comet operates solely within the United States. It owns two subsidiaries conducting business in the…
A: Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…
Q: em achinery rklift uck Cost $82,000 41,000 47,400 Purchase Date Jan. 1, 2012 Jan. 1, 2019 Jan.…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: On March 2, 2022, 20-year, 3 percent, general obligation serial bonds were issued at the face amount…
A: face amount bond is = $3,000,000Interest of = 3%
Q: The information below pertains to the General Company (which makes food products) for the fiscal…
A: The four financial statements prepared on the basis of these accounting records are Income…
Q: Vanguard Corporation has provided the following data from its activity-based costing system:…
A: Under an activity based costing system for each activity cost pool, an activity rate is calculated…
Q: Tanger Company has three customers: E, F, and G. The beginning accounts receivable subsidiary ledger…
A: Accounts receivable is the amount of credit sales that are receivable from customers for goods sold…
Q: Carver Incorporated purchased a building and the land on which the building is situated for a total…
A: Basket purchase is a type of acquisition of assets where number of assets purchases at single…
Q: Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: An asset was bought for Php 15,500,000 8 years ago, with an expected lifetime fo 12 years. If…
A: The question is based on the concept of Depreciation Accounting.Depreciation is the decrease in the…
Q: Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor…
A: Standard data is calculated by considering budgeted data and using actual data.Variance refers to…
Q: The following labor standards have been established for a particular product Standard labor hours…
A: Variances are the differences between the actual values and budgeted values. If the budgeted values…
Q: Presented here are long-term liability items for Teal Mountain Inc. at December 31, 2022. Bonds…
A: Balance sheet is a financial statement that shows profitability, total revenue and total expenses…
Q: Kershaw Corporation had the following list of items from its balance sheet in alphabetical order for…
A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…
Q: The financial statements for Leslo Inc. are as follows: LESLO INC. Balance Sheet March 31 Assets…
A: The question is related to Ratio Analysis. 1.Earnings per share is calculated with the help of…
Q: ABC Co. produces calculators. Budgeted sales will be: March 12,000 units, April 13,000, May 15,000…
A: Units produced means the number of goods required to be produced by the entity during a particular…
Q: Chapter 8 Homework 1 7 eBook B Hint F Print References Shadee Corporation expects to sell 530 sun…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customer…
Q: Van Hise Company’s Accounts Receivable balance at December 31 was $600,000, and there was a debit…
A: Current assets are the assets that are expected to converted into cash within one year or due to be…
Q: The costs of a book printer for the last several months are as follows: Press Setup Cost May June…
A: Variable cost is the cost which changes with the change in the activity level. The higher the…
Please do not give solution in image format thanku
Step by step
Solved in 4 steps
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
- The Calhoun Textile Mill is in the process of deciding on a production schedule. It wishes to know how to weave the various fabrics it will produce during the coming quarter. The sales department has continued orders for each of the 15 fabrics produced by Calhoun. These demands are given in the following table. Also given in this table is the variable cost for each fabric. The mill operates continuously during the quarter: 13 weeks, 7 days a week, and 24 hours a day. There are two types of looms: dobbie and regular. Dobbie looms can be used to make all fabrics and are the only looms that can weave certain fabrics, such as plaids. The rate of production for each fabric on each type of loom is also given in the table. Note that if the production rate is zero, the fabric cannot be woven on that type of loom. Also, if a fabric can be woven on each type of loom, then the production rates are equal. Calhoun has 90 regular looms and 15 dobbie looms. For this problem, assume that the time requirement to change over a loom from one fabric to another is negligible. Management would like to know how to allocate the looms to the fabrics and which fabrics to buy on the market so as to minimize the cost of meeting demand.Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.
- Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. Otero has been in business since 1985 and has been profitable every year since 1993. The company uses a standard cost system and applies overhead on the basis of direct labor hours. Otero has recently received a request to bid on the manufacture of 800,000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes. Full cost has been defined as including all variable costs of manufacturing the product, a reasonable amount of fixed overhead, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicated that bids in excess of 30 per blanket are not likely to be considered. In order to prepare the bid for the 800,000 blankets, Andrea Lightner, cost accountant, has gathered the following information about the costs associated with the production of the blankets. Direct machine costs consist of items such as special lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhead rates. Otero recently developed a new blanket fiber at a cost of 750,000. In an effort to recover this cost, Otero has instituted a policy of adding a 0.50 fee to the cost of each blanket using the new fiber. To date, the company has recovered 125,000. Lightner knows that this fee does not fit within the definition of full cost, as it is not a cost of manufacturing the product. Required: 1. Calculate the minimum price per blanket that Otero Fibers could bid without reducing the companys operating income. 2. Using the full-cost criteria and the maximum allowable return specified, calculate Otero Fibers bid price per blanket. 3. Without prejudice to your answer to Requirement 2, assume that the price per blanket that Otero Fibers calculated using the cost-plus criteria specified is greater than the maximum bid of 30 per blanket allowed. Discuss the factors that Otero Fibers should consider before deciding whether or not to submit a bid at the maximum acceptable price of 30 per blanket. (CMA adapted)
- Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Blue Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $4/square yard Direct labor 1.2 DL hours per unit @$12/DL hour Throughout the year, Blue used 32,430 square yards of fabric in the process of making 3,450 tents. The company had originally planned to produce and sell 3,150 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 34,380 square yards of canvas at $4.20 per square yard. Blue's DL cost totaled $52,026 for the 4,002 hours that were actually used. (a) Determine Blue's DM and DL price and efficiency variances; specify the amount and sign for all. Price variance $ Efficiency A variance DM A +A DLMunoz Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $77,050 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,690 tents in January and 1,300 tents in February. For the entire year, the company expects to produce 11,500 tents. If the cost objective is to determine the cost per tent, is the expert’s salary a direct or an indirect cost? How much of the expert’s salary should be allocated to tents produced in January and February?