The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
Q: Taguchi Loss Function Lanman, Inc., estimates its hidden external failure costs using the Taguchi…
A: Average cost is the cost that the company is expected to be incurred on its average number of units.…
Q: New Policies urrent Attempt in Progress The following transactions occurred during 2025. Assume that…
A: Every firm manager understands the significance of asset depreciation, since everything that a firm…
Q: (a) For each company, compute the following ratios. Assume all sales were on credit. (Round current…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Standard Direct Materials Cost per Unit Truly Delicious Inc. produces chocolate bars. The primary…
A: The variance is the resulting amount of applied cost and actual cost. The applied cost is calculated…
Q: The following selected transactions for Sheffield Bryce Company are presented in journal form. Date…
A: T-accounts are those which are prepared after recording the journal entries. The journal entries are…
Q: ich of the following credits is permitted in determining the unified transfer tax due? The state…
A: Tax refers to the mandatory form of charge levied by the authoritative government over the sum value…
Q: The partnership agreement of Angela and Dawn has the following provisions: The partners are to earn…
A: Introduction:- Section 401 of the UPA 1997 states that, Each Partner is entitled to an equal share…
Q: Sales Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Net Income…
A: In this question, we need to prepare operating activities section of statement of cash flows for…
Q: Naples Corporation has provided the following data from its activity-based costing accounting…
A: ALLOCATION OF COST : COST OF EXPENSE X ACTIVITY RATE OF THE PARTICULAR COST POOL
Q: The following data relate to the direct materials cost for the production of automobile tires:…
A: Direct material variances are determined by the entity to know the differences between the estimated…
Q: CPJ Enterprise constructed a building at a cost of $24,000,000. Average accumulated expenditures…
A: Solution... Cost of Building = construction cost + Avoidable interest = $24,000,000 +…
Q: Majestic Company manufactures TVs. Some of the company’s data was misplaced. Use the following…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: Answer the following questions in depth .... Isn't estimating bad debts a way of manipulating net…
A: A company's bad debt value has been frequently calculated based on prior results. This amount is…
Q: What is Webster’s direct materials price variance? (do not round intermediate calculations, round…
A: Direct Materials price Variance = (Actual Price x Actual Quantity Purchase) - (Standard Price x…
Q: Dake Bakery is purchasing heavy cream from an outside suppliers. The comapny's dairy division, which…
A: A transfer price is the amount that one division of a company costs another division of the same…
Q: Required Information [The following information applies to the questions displayed below.] Sparrow…
A: VALUATION OF INVENTORY Inventory Valuation is a Method of Calculation of Value of Inventory at the…
Q: Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey…
A: Under the solicitation bounds of Public Law 86-272, the business income should be assigned to the…
Q: Further, EEl recognized $4,100 of operating expenses on account a Required Based on this information…
A: Answer :a. Operating section of cash flow statement - Direct method : Particular Amount $ Cash…
Q: How does the concept of uniformity relate to comparability in the accounting literature?
A: Accounting, which is frequently referred to as simply "accounting," is the process of gathering,…
Q: Melanie operates Mel's Bakery in Foxboro, Massachusetts, and has retail stores in Connecticut,…
A: Sales tax liability=Total Store Sales×Tax Rate
Q: The following data were taken from the financial records of Mydorf Company. Net Sales Beginning…
A: Inventory turnover ratio is a measure of number of times the inventory is used or sold in a given…
Q: Quencher Beverage is a large regional retail establishment. Quencher recently decided to start…
A: Loss-leader strategy means to price the product at a lower than the variable cost price to attract…
Q: The following information applies to the questions displayed below.] Diego Company manufactures…
A: Advertising Compain Decision: The advertising policy would be accepted if is provides a positive…
Q: Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through…
A: Job costing is a method of accounting that is designed to assist you in keeping track of the costs…
Q: Assets Current Arrate 2022 GLITTER INC. Cindensed Balance Sheet December 31 2021 Increase or…
A: Lets understand the basics. Horizontal analysis is a analysis which shows trend of changes in two or…
Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…
A: The ratio analysis helps to analyse the various elements of the financial statements of the business…
Q: 83. Assembly Bill 91 (AB 91)-Loophole Closure and Small Business and Working Families Tax Relief Act…
A: TCJA was put into effect in the year 2017. TCJA bought about major and substantial changes along…
Q: Pick one answer: In the process of replacing Mr. Cowan's intake manifold gasket, Pete found that he…
A: In the manufacturing there are many types of expenses that are directly related to the manufacturing…
Q: Compute depreciation for the first year under straight-line, units-of-production, and…
A: Depreciation under straight line method for the first year: Straight-line depreciation is calculated…
Q: E10.11 (LO 1) (Depreciation Change in Estimate) Machinery purchased for $60,000 by Tom Brady Co. in…
A: Answer Formula Straight line depreciation method = purchase price - salvage value /…
Q: Refer to the following selected financial information from Helpful Hardware. Compute the company's…
A: Days sales in inventory is the measure of number of days it take the company to sell its inventory.…
Q: Environmental Cost Report Verde Company reported operating costs of $43,000,000 as of December 31,…
A: Environmental Cost :— It is the cost connected with improvement of the damages caused to…
Q: b. Calculate the business income apportioned to State X. Business Income State X
A: The organization operates a business to make a profit. Organizations earn income from business and…
Q: ose is in the beauty industry. Rose offers a promotion that if customers buy X cosmetics for…
A: As per the accounting standard (IFRS15) Revenue from contracts with customer which is based on 5…
Q: Answer the following questions in depth .... Why do accountants have to classify items as capital…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Sipple Furniture’s master budget for the year includes $341,400 for fixed supervisory salaries.…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: The senior buyer at How Does Your Garden Grow Inc. needs to select a supplier for plastic patio…
A: A weighted scoring model is used by management as a project management tool to weigh the…
Q: On January 1, Year 1, DIBA Company had a balance of $464,000 in its Bonds Payable account. During…
A: Answer - Cashflow from Financing Activities indicates cash flows between a business, its owners,…
Q: Critical evaluation of importance of auditor independence
A: Auditors are expected to provide a candid and knowledgeable evaluation of the work they evaluate. If…
Q: Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY…
A: Cash flow from operating activities means the amount of cash inflows and outflows from the daily…
Q: The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit…
A: Cash flow may be computed using the indirect approach by changing net income by either adding or…
Q: In a recent annual report and related Global Responsibility Report, Starbucks provides information…
A: Triple bottom line: Concept: In simple words, The concept behind the triple bottom line is that…
Q: On January 2, 2021, Morales Paint Company purchased a truck that cost $60,000 with a residual value…
A: Depreciation Expense - Depreciation Expense is charged on the Fixed assets of the company. It is…
Q: You are considering starting a new factory producing small electric heaters. Each unit will sell at…
A: Operating break even point is where fixed cost and variable cost is covered only and time value of…
Q: For the company, United Therapeutics, which specific accounts should the auditors identify for…
A: United therapeutics is biological company and is listed on NASDAQ stock exchange. It designs and…
Q: The accounting records of Ehrlich Inc. show the following data for 2020 1. Life insurance expense on…
A: Taxes that are payable but won't be paid until a later time are recorded as a deferred tax…
Q: how the journal entry he will need to make in order to write down the ending inventory from cost to…
A: Journal entry: The first step in accounting is a journal entry, which is used to record a business…
Q: andenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to…
A: Contribution means the difference between the selling price and variable cost . Fixed cost when…
Q: The benefit of an IDIT over a GRAT is: 1. The full value of the remainder interest is a transfer…
A: IDIT and GRAT are wealth transfer strategies that help in successful transfer of wealth from one…
Q: Horizons plc began construction of a qualifying asset on 1 May 2008 and withdrew funds of E4.5 m on…
A: Introduction:- Calculation of weighted average cost as follows:- =Weighted interest/weighted loans…
Solve the following problem:
The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Solve the following problem: The service department at Major Motors sold $48,000 in service last month. They had direct labor costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What was Major Motors net profit?The service department at Major Motors sold $48,000 in service last month. They had direct labor costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What was Major Motors net profit?The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
- Chaffee Corporation staffs a helpline to answer questions from customers. The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 33,000 calls in a month, the costs of operating the helpline total $742,500. To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 34,800 calls in a month? (Assume that this call volume is within the relevant range.) vered of 1.00 tion O a. 742,500 Ob. 783,000 Oc. 704,095 d. 762,750 تنشيط ک انتقل إلى ال vered 30% of the Kendall Company clas selling price. If tot mcbs.proctoring.online dlialà J,lày. II rage is إيقاف المشاركة DELLR&R Savings Bank finds that its basic transaction account, which requires a $1000 minimum balance, costs this savings bank an average of $3.25 per month in servicing costs (including labor and computer time) and $1.25 per month in overhead expenses. The savings bank also tries to build in a $0.50 per month profit margin on these accounts. Further analysis of customer accounts reveals that for each $100 above the $500 minimum in average balance maintained in its transaction accounts, R&R Savings saves about 5 percent in operating expenses with each account. (Note: If the bank saves about 5 percent in operating expenses for each $100 held in balances above the $500 minimum, then a customer maintaining an average monthly balance of $1,000 should save the bank 25 percent in operating costs) For a customer who consistently maintains an average balance of $1,200 per month, how much should the bank charge in order to protect its profit margin? 05.00 4.68 O 0.32 325During a recent month, Cleveland Company planned to provide cleaning services to 30 customers for $25 per hour. Each job was expected to take 3 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 2.5 hours each. Cleveland’s revenues for the month were $250 more than expected. $250 less than expected. $750 more than expected. Cannot be determined from data given
- During a recent month, Cleveland Company planned to provide cleaning services to 30 customers for $25 per hour. Each job was expected to take 3 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 2.5 hours each. Cleveland’s revenues for the month were a. $250 more than expected. b. $250 less than expected. c. $750 more than expected. d. Cannot be determined from data givenBaqar, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company’s contribution format income statement for the most recent month is given below: Sales (13,500 units at $20 per unit) 270,000 Less: Variable Expenses (189,000) Contribution Margin 81,000 Less: Fixed Expenses (90,000) Net Profit (9000) Required: Compute the company’s CM ratio and its break-even point in both units and dollars. Refer to the original data. The president is convinced that a…Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 21,500 $ 15.00. $7.30 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Revenue Expenses: Administrative expenses $ 0.50 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $54.00 per repair-hour. $ 2,760 $ 5,740 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 4,630 $ 3,820 Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income $…
- Jaroni Inc. produces specialty quilts and blankets using a partly manual, partly automated manufacturing process. Total sales for the previous period were $60,000. Wages, materials, and variable manufacturing overhead totaled $10,200. Salaries, depreciation, rent, and other fixed expenses amounted to $14,940. Jaroni charges $500 per customized blanket.What is Jaroni's break-even point in Sales Dollars?Leander Office Products Inc. produces and sells small storage and organizational products for office use. During the first month of operations, the products sold well. Andrea Leander, the owner of the company, was surprised to see a loss for the month on her income statement. This statement was prepared by a local bookkeeping service recommended to her by her bank manager. The statement follows: LEANDER OFFICE PRODUCTS INC. Income Statement Sales (43,000 units) Variable expenses: Variable cost of goods sold✶ Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Operating loss $253,700 $116,530 49,880 166,410 87,290 89,586 17,200 106,786 $(19,496) *Consists of direct materials, direct labour, and variable manufacturing overhead. Leander is discouraged over the loss shown for the month, particularly since she had planned to use the statement to encourage investors to purchase shares in the…A company has been making wakeboards for many years. The monthly overhead is $19,000 and each wakeboard costs $363 in materials and labor to make. If these items are sold for $475. How many wakeboards must be sold to break even? What is the profit in dollars if 189 wakeboards are made and sold?