Manji Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers asvacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist ofinterest and depreciation. The direct operating costs for each condo follow.Condo 1Condo 2Condo 3TotalDirectLabor$ 17,30018,60026,000$ 61,900Other DirectOperating Costs$ 44,80051,00064,500$ 160,300Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other directoperating costs incurred for each.Requireda. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn?Note: Do not round intermediate calculations.Income earned

Direct Costs:Direct costs are expenses directly associated with operating a specific condo. In this…

Answered: Walton Condos Corporation is a small…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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Zachary Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. $ 272,000 Cost of materials (13,600 Units x $20) Labor (13,600 Units x $30) Depreciation on manufacturing equipment* Salary of supervisor of engine production Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs 408,000 29,000 74,000 12,000 79,000 Total cost to make 13,600 engines $ 874,000 *The equipment has a book value of $106,000 but its market value is zero. Required a. Determine the maximum price per unit that Zachary would be willing to pay for the engines. b. Determine the maximum price per unit that Zachary would be willing to pay for the engines, if production increased to 17,900 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit
4. Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Costs Variable / Fixed Product / Period Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
An example of an uncontrollable cost would include all of the following except______. A. real estate taxes charged by the county in which the business operates B. per-gallon cost of fuel for the companys delivery trucks C. hourly rate of pay for the companys purchasing manager D. federal income tax rate paid by the company
Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River. Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year: Variable Fixed Costs Costs $ 3,100 3,800 6,200 7,720 6,800 21,800 Canoe maintenance $ 9.00 Licenses and permits Vehicle leases Station lease Advertising Operating costs 7.00 7.00 Quality Craft Rentals began business with a $27,000 expenditure for a fleet of 30 canoes. These are expected to last 10 more years, at which time a new fleet must be purchased. Rentals have been stable at about 6,800 per year. Required: Matt is happy with the steady rental average of 6,800 per year. For this number of rentals, what price should he charge per rental for the business to make an annual 16% before-tax return on…
Zachary Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (14,700 units x $19) Labor (14,700 units × $25) Depreciation on manufacturing equipment* Salary of supervisor of engine production Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs Total cost to make 14,700 engines *The equipment has a book value of $101,000 but its market value is zero. Required $ 279,300 367,500 37,000 84,000 16,000 79,000 $ 862,800 a. Determine the maximum price per unit that Zachary would be willing to pay for the engines. b. Determine the maximum price per unit that Zachary would be willing to pay for the engines, if production increased to 18,350 units. Note: For all requirements, round intermediate and final answers to 2 decimal places. a. Maximum price per unit b. Maximum…
Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tate rents the machine on its own, it will cost $26,000. If Booth rents the machine alone, it will cost $14,000. If they rent the machine together, the cost will decrease to $36,000. Q. Calculate Tate’s and Booth’s respective share of fees under the stand-alone cost-allocation method.
client plans to construct a manufacturing plant that involves multiple engineering disciplines. Calculate the total engineering fees including taxes based on the following: Mechanical Works, $1,540,000 Electrical Works, $1,780,000 Earth Works, $950,000 Civil Works, $2,125,100 Environmental Works, $1,325,000 Basis B fees = 9% There are no office fees Do not include the construction works as part of the engineering fees. Taxes = 13%
Adams Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (14,200 Units x $27) Labor (14,200 Units x $14) Depreciation on manufacturing equipment* Salary of supervisor of engine production Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs Total cost to make 14,200 engines $ 383,400 198,800 22,000 74,000 15,000 86,000 $779,200 *The equipment has a book value of $105,000 but its market value is zero. Required a. Determine the maximum price per unit that Adams would be willing to pay for the engines. b. Determine the maximum price per unit that Adams would be willing to pay for the engines, if production increased to 18,300 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit
Sandhill Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Units sold Basic 1,098 Unit selling price $245 Unit variable cost $197 Basic Plus 414 $395 $283 Premium Total 288 1.800 $800 $414 The company's total fixed costs to produce the filtration systems are $163,520.
Gibson Company makes and sells lawn mowers for which it currently makes the engines, It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (14,700 Units x $17) Labor (14,700 Units x $17) Depreciation on manufacturing equipment Salary of supervisor of engine production Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs $ 249,900 249, 900 32,000 73,000 16,000 89,000 $ 709,800 Total cost to make 14,700 engines *The equipment has a book value of $97,000 but its market value is zero. JFZ Note: Is the Book Value of an asset (original cost - depreciation taken to date) ever relevant? No. Book vaiue is the result of a decision made in the past (I.e. Sunk). Required a. Determine the maximum price per unit that Gibson would be willing to pay for the engines (.e. where the cost would be the same and management would be "indifferent" between…
Perez Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,300 units × $13) $ 172,900 Labor (13,300 units × $14) 186,200 Depreciation on manufacturing equipment* 29,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 15,000 Allocated portion of corporate-level facility-sustaining costs 79,000 Total cost to make 13,300 engines $ 551,100 *The equipment has a book value of $109,000 but its market value is zero. Required Determine the maximum price per unit that Perez would be willing to pay for the engines. Determine the maximum price per unit that Perez would be willing to pay for the engines, if production increased to 19,000 units.
Value chain and classification of costs, computer company. Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect withother computersf. Purchase of competitors’ products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printers

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