Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used In productlon $ 66,000 Wages pald to the workers who palnt the figurlnes $ 94,000 Wages pald to the sales manager's secretary $ 26,000 Cost of Junk mall advertlsing $ 43,000 What is the total of the direct costs above?
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- Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For Actual cars washed Revenue For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.08 $ 0.25 $ 4,400 $ 0.30 $ 8,000 $ 2,200 $ 1,700 Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance 8,400 $ 51,900 Required: Prepare a flexible budget…The Enhanced Products Division of Forrest Industries makes ceramic pots that are used to hold large decorative plants. During 2013, the division produced 10,000 pots and incurred the following costs: unit-level material costs (10,000@ $15) $15,000 unit-level labor costs (10,000@ $20) $200,000 Unit-level overhead costs (10,000 @16) $160,000 Depreciation expenses on equipment* $30,000 Other manufacturing overhead ** $36,000 *The equipment was purchased for $150,000 and has a current book value of $120,000, remaining useful life of four years, and a zero salvage value. If the company does not use the equipment, it can be leased for $8,000 per year.**Includes supervisors' salaries and rent for manufacturing plant.The division is considering replacing the equipment used to manufacture its ceramic pots. Replacement equipment can be purchased at a price of $200,000. The new equipment, which is expected to last 4 years and have a salvage value of…Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured In a small plant that relies heavily on direct labor workers. Thus, varlable expenses are high, totaling $15.000 per ball, of which 60% Is direct labor cost Last year, the company sold 62.000 of these balls, with the following results: $ 1,558, 000 930, e00 Sales (62,889 balls) Variable expenses Contribution margin Fixed expenses 620,e00 426,000 $ 194, 000 Net operating income Required: 1. Compute (a) last year's CM ratio and the break-even polnt in balls, and (b) the degree of operating leverage at last year's sales level. 2 Due to an Increase in labor rates, the company estimates that next year's varlable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remalns constant at $25.00, what will be next year's CM ratio and the break-even polnt in balls? 3. Refer to the data in (2) above. If the expected change in…
- Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: S 36,500 25,500 76,8০0 31,300 1,040 24,000 30,300 75,800 41,600 840 Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehieles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Pactory insurance Depreciation on sewing machines Wages paid to cutters 18,400 6,900 50,500 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White.Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.10 $ 0.25 $ 0.30 Administrative expenses Total expenses Net operating income $ 1,300 $ 4,300 $ 8,300 $ 2,200 $ 1,800 8,400 $ 59,370 5,480 2,100 $ 0.04 2,315 7,150 8,300 2,400 2,032 29,777 $ 29,593 Required: Prepare a flexible budget performance report for August. Note:…Pan Demic, Inc. (PDI) manufactures and sells cast iron skillets. A finished skillet sells for $40 and costs $15 to manufacture. PDI uses one raw material, iron ore, which is buys for $8/pound. Skillet Forgers heat the iron ore and form it into skillets. Forgers are paid $55/hour. Period 1: During the period, PDI purchased $4,000 of Iron Ore. At the end of the period, they had $2,400 of ore left in Raw Materials They used 120 hours of direct labor and incurred $12,000 of Factory Overhead. At the beginning of the period, PDI had $3,000 of costs in WIP and $2,400 of costs in Finished Goods. Prepare the Schedule of Cost of Goods Sold for PDI. Do not use dollar signs. Use whole numbers only (no decimal places) PDI Schedule of Cost of Goods Sold Finished Goods Beginning Inventory Cost of Goods Manufactured Account Cost of Goods Available for Sale Finished Goods Ending Inventory Cost of Goods Sold WIP Inventory Based on your work above, compete the Inventory section of the Balance Sheet as of…
- Determine the company's total cost of goods completed and COGS in December. Total cost of goods completed and COGS 69 eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (d1) How much gross margin did the company earn in December? (Round percentage answer to 2 decimal places, e.g. 52.75%.) Gross margin Gross margin percentage $ % If Betty had a goal of earning a 35% gross margin, did she reach her goal? .she eTextbook and Media Save for Later ✓ reach her goal, because % is than her goal of 35%. Attempts: 0 of 2 used Submit AnswerVisnoThe 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?
- A is the warehouse manager at a clothing manufacturer is responsible for maintaining inventory of materials and accessories (zips, buttons, etc) and recharging departments on a relevant costing basis.The Production Department has requested the following materials: 100m of fabric- this was purchased for $25/metre three years ago but has never been used. Eva had been planning to dispose of this fabric by donating it to a local charity. 50m of leather - Eva has no leather in stock. The leather normally costs $30/metre but, due to shortages in the supply chain, the price has just risen to $35/metre. 100 buttons- these are used regularly across the business. However, Eva currently has only 80 buttons in stock, which were purchased for $0.75 each. She will need to purchase the remaining 20 buttons at $1 each.Required:Calculate the relevant cost that the warehouse manager should charge the department?Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)TechSystems manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 66,000 units last year: A B 1 Direct materials $528,000 2 Direct labor 132,000 3 Variable MOH 198,000 4 Fixed MOH 462,000 5 Total manufacturing cost for 66,000 units $1,320,000 Another company has offered to sell TechSystems the switch for $11.00 per unit. If TechSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. TechSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference Variable cost per unit: Direct materials $8.00 $0.00 $8.00 Direct labor 2.00 0.00 2.00…