Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2021, 10 engineers, most of whom are recent graduates, handled 110,000 calls. The average yearly salary for software engineers was $49,000. Starting in 2022, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers' salary to $64,000 per year. In 2022, eight engineers handled 118,000 calls. Required: 1. Calculate the partial operational productivity ratio for both years. 2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.) 1. Operational partial productivity 2. Financial partial productivity 2021 2022

Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2021, 10 engineers, most of whom are recent graduates, handled 110,000 calls. The average yearly salary for software engineers was $49,000. Starting in 2022, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers' salary to $64,000 per year. In 2022, eight engineers handled 118,000 calls. Required: 1. Calculate the partial operational productivity ratio for both years. 2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.) 1. Operational partial productivity 2. Financial partial productivity 2021 2022

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

See similar textbooks

Similar questions

Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?
On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
On September 30, 2021, Athens Software began developing a software program to shield personal computers from malware and spyware. Technological feasibility was established on February 28, 2022, and the program was available for release on April 30, 2022. Development costs were incurred as follows: September 30 through December 31, 2021 January 1 through February 28, 2022 March 1 through April 30, 2022 Athens expects a useful life of five years for the software and total revenues of $6,500,000 during that time. During 2022, revenue of $1,170,000 was recognized. Required: Prepare a journal entry in each year to record development costs for 2021 and 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the development costs for 2021. Note: Enter debits before credits. Date 2021 $2,280,000 880,000 480,000 General Journal Debit Credit
Apricot is an information technology (IT) manufacturing company which has been dealing in various IT equipment over 70 years. It operates from one central site which includes the production facility, warehouse and administration offices. You are an audit senior in Juit Company, and you are commencing the audit planning of Apricot Company for the year ending 31 April 2019. Apricot Company sells all of it IT equipment to multinational clients, with 75% being sold to a multi-million IT dealer. The company has a one-year contract to be the sole supplier of IT equipment. In order to secure the contract, the company reduced prices and offered 100 days credit period, while its normal credit period is 28 days, which is an equivalent of month. Currently, Apricot Company has strategically reduced the level of products directly manufactured and rather started to import significant amount of its IT equipment from India. Nearly 65% of the IT equipment is imported and 35% manufactured. Purchase…
AgriFoods, Incorporated prepares and delivers agricultural products to industrial-scale kitchens and food service providers. One of its key customers is Home Kitchen & Company, which provides cafeteria solutions for corporations and universities. On January 1, 2024, AgriFoods obtained a one-year contract to supply a pre-specified amount of vegetables to Home Kitchen, and received $600,000 in cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeterias for a period of six months, from April to September, and paid $70,000 in cash. For similar arrangements, Home usually charged $50,000. Required: (a) Prepare the journal entries AgriFoods would record on January 1, 2024 and January 31, 2024 with respect to the sales contract. Assume revenue is accrued on a monthly basis. (b) Prepare the journal entry to account for AgriFoods’ purchase of Home’s services.
AgriFoods, Incorporated prepares and delivers agricultural products to industrial-scale kitchens and food service providers. One of its key customers is Home Kitchen & Company, which provides cafeteria solutions for corporations and universities. On January 1, 2024, AgriFoods obtained a one-year contract to supply a pre-specified amount of vegetables to Home Kitchen, and received $900,000 in cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeterias for a period of six months, from April to September, and paid $60,000 in cash. For similar arrangements, Home usually charged $40,000. A correct journal entry to account for AgriFoods' purchase of Home's services should includeoptions: A。a debit of $ 40,000 to Cafeteria Operating Expense and a debit of $20,000 to Sales Revenue B. a debit of $ 60,000 to Cafeteria Operating Expense and a debit of $20,000 to Deferred Revenue C. a debit of $60,000 to Cafeteria Operating Expense and a credit of $60,000 to Sales…
Avon Corporation sells phone cases to public and private companies. They are located at 123 Locus Rd, Markham, ON. They employ 200 full time employees who work in sales, customer service and office support roles. They have had an annual remuneration of over $1,000,000 for the past several years therefore their EHT rate is 1.95%. Pay period #1 started December 27, 2020. All are paid on a bi-weekly basis. All benefits are processed each pay on an as enjoyed basis. The first pay day for employees is Jan 13, 2021. They have three staff in the Customer Service Department answering questions from clients and the general public. They all work Monday to Friday and do not work statutory holidays but are paid for them. Neema has been with Avon for 3 years and answers calls specifically from clients. She earns $18.25 per hour and works 35 hours per week. She also does not work any overtime. She is paid bi-weekly. Her employer provides the following: · Health and Dental - at a total…
management consulting firm has four types of professionals on on its staff: Managing consultants, senior associates, field and and office staff. Average rates charged to consulting clients for work of each of these professionals categories are k3150/hour, k1680/hour, k1260/hour and k630/hour respectively. Office records indicate the following number of hours billed last year in each category: 8000, 14000, 24000 and 35000, respectively. If the firm is trying to come up with an average billing rate for estimating client charges for next year, what would you suggest they do and what do you think is the appropriate rate?
At Shadyside Insurance Company, three types of clerks work in the claims processing department: supervisors, senior clerks, andjunior clerks. The supervisors are paid $42,000 per year, the senior clerks are paid $37,000 peryear, and the junior clerks are paid $32,000 per year. For every 150,000 claims processed peryear, Shadyside plans to use one supervisor, six junior clerks, and two senior clerks.Last year, the company processed 2 million medical claims and employed 14 supervisors, 30senior clerks, and 83 junior clerks.a. Compute the excess costs or cost savings relating to the claims processing staff.b. How would you interpret these results? What additional information would you askfor if you were making a determination of the clerical group’s processingefficiencies?
In March 2021, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The software then automatically records inventory as the shipment is received and read by scanners. The software development was completed in October 2021 at a cost of $150,000. Of this amount, $25,000 was spent before the application development stage was established. Price expects to use the software for at least five years. Determine the initial amount that Price should capitalize as software development costs.
In March 2024, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The software then automatically records inventory as the shipment is received and read by scanners. The software development was completed in October 2024 at a cost of $150,000. Of this amount, $25,000 was spent before the application development stage was established. Price expects to use the software for at least five years. Determine the initial amount that Price should capitalize as software development costs. Capitalized costs
a) Apricot is an information technology (IT) manufacturing company which has been dealing in various IT equipment over 70 years. It operates from one central site which includes the production facility, warehouse and administration offices. You are an audit senior in Juit Company, and you are commencing the audit planning of Apricot Company for the year ending 31 April 2019. Apricot Company sells all of it IT equipment to multinational clients, with 75% being sold to a multi-million IT dealer. The company has a one-year contract to be the sole supplier of IT equipment. In order to secure the contract, the company reduced prices and offered 100 days credit period, while its normal credit period is 28 days, which is an equivalent of month. Currently, Apricot Company has strategically reduced the level of products directly manufactured and rather started to import significant amount of its IT equipment from India. Nearly 65% of the IT equipment is imported and 35% manufactured. Purchase…