Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 13P
Using the chart of accounts in Figure 2-1, determine the changes to the
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You are given the information below and you are requested to answer the following questions (keep your calculations at a side paper because you might need them to answer other questions also):
Beginning finished goods, 1/1/2019
$ 90,000
Ending finished goods, 31/12/2019
$ 77,000
Cost of goods sold
$ 270,000
Sales revenue
$ 500,000
Operating expenses
$ 155,000
Question: What is gross margin for 2019?
Jake's Roof Repair has provided the following data concerning its costs:
Cost per
Repair-Hour
Fixed Cost
per Month
$
Wages and salaries
Parts and supplies
Equipment depreciation $
Truck operating expenses $
Rent
$
Administrative expenses $
21,100
2,750
5,780
4,660
3,840
$
16.00
$
7.20
$ 0.55
$ 1.70
$ 0.40
For example, wages and salaries should be $21,100 plus $16.00 per repair-hour. The company expected to
work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be
$48.00 per repair-hour.
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 (i.e., zero variance). Input all amounts as positive
values.)
Need to make sure my notes coincide with this example problem from video. please include how you
calculated each part. Thank you
Jake's Roof Repair has provided the following data concerning its costs:
Fixed Cost
per Month
Cost per
Repair-Hour
$
Wages and salaries
Parts and supplies
Equipment depreciation $
Truck operating expenses $
$
Administrative expenses $
Rent
21,200
2,770
5,760
4,680
3,840
$ 15.00
$ 7.80
$ 0.55
$ 1.50
$ 0.70
For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually
worked 2,400 repair-hours. The company expects its sales to be $50.00 per repair-hour.
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 (i.e., zero variance). Input all amounts as positive values.)
Chapter 3 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 3 - How do the relationships between the balance...Ch. 3 - Which of the transactions from this chapter result...Ch. 3 - Prob. 3DQCh. 3 - Which of the transactions from this chapter result...Ch. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - The following invoices are being entered into the...Ch. 3 - Prob. 9PCh. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...
Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...Ch. 3 - Using the chart of accounts in Figure 2-1,...
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