CALCULATING PRICE BY APPLYING A MARKUP PERCENTAGE TO COST Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 15 percent. The job for a medium-sized dance club client included the following costs:
Q: The economic value-added concept has attracted considerable attention in recent years. Explain the a...
A: Economic value added (EVA) can be defined as the measure of the financial statement of the company b...
Q: Based on the following data for the current year, what is the number of days' sales in inventory (ro...
A: number of days' sales in inventory =(Ending Inventory/Cost of Goods Sold )X 365 days
Q: Journalize the transactions of Roland Foster optical Dispensary. Include an explanation with each jo...
A:
Q: Explain the purpose of performing bank reconciliation. b. State possible reasons why there is an out...
A: Bank reconciliation statement: It is the process performed by the firm to ensure the balance between...
Q: Cellphone Company purchased an equipment on January 2, 2017 for P3,000,000. At the date of acquisiti...
A: Depreciation per year =Cost of the equipment-salvage valueuseful life=3,000,000-06=500,000. Deprecia...
Q: Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use machi...
A: ABC (Activity Based Costing) : This is a method of allocating Overheads to the product based on the ...
Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1,2013 providing the newest kind o...
A: Step 1 Noncurrent assets held for sale are those assets if they are held for immediate sale in a pre...
Q: Sue received 50 shares of Zoll Industry stock from her Uncle Dave for a graduation present. Dave pur...
A: Stock received as a gift or present will retain the initial cost basis of the donor at the time of t...
Q: On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less...
A: WORKING : PARTICULARS AMOUNT ($) FACE VALUE OF NOTES RECEIVABLE $30,000 INTEREST RATE 10% ...
Q: Prepare a bank reconciliation using good format. b. Prepare any necessary adjusting journal entries ...
A: Sometimes There may be a difference in cash & passbook Balances. Usually Cash & Bank Pass bo...
Q: Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike...
A: In Specific Identification method we can easily find that Units which are sold are from which lot an...
Q: Markham Farms reports the following contribution margin income statement data for the month of Augus...
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which...
Q: The following report was prepared for evaluating the performance of the plant manager of Marching An...
A: Manufacturing cost:-It include direct and indirect cost related to the production of the goods. It i...
Q: X Co. had $2 million in credit sales during 2021. Historically, 2% of its sales are returned by cust...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Sadie sold 11 shares of stock to her brother, George, for $600 sixteen months ago. Sadie had purchas...
A: Sadie's brother receives a dual basis in the stock and the loss of $200 is deferred. When the stock...
Q: The following information relates to Wal-Mart Corporation for the past accounting period Cost ...
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...
Q: » 24 Which of the following transactions would be recorded in the general journal?
A: 24. The following transactions would be recorded in the general journal are given below: Depreciati...
Q: NK Ltd has over applied overhead costs for the just-ended period by GHS6,000. NK Ltd’s overhead appl...
A: The budgeted overhead is allocated or applied to the actual units based on actual units produced dur...
Q: During 2014, a company wrote off $6,000 in uncollectible accounts receivable. At the end of the year...
A: Uncollectible receivable represents the expected amount from the receivables balance which the corpo...
Q: A company issues 500 shares of $10 par value common stock and 200 shares of $20 par value preferred ...
A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per share...
Q: On January 1, 2022, Softmicro Corp was formed by issuing 10,000 shares of $5 par common stock and ...
A: Journal Entries:
Q: Everything Auto are retailers who purchase and sell vehicle parts and accessories, including batteri...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Teal Mountain Incorporated issued $0.62 million of 6.5%, 10-year bonds on July 1, 2019, at face valu...
A: Under ASPE, the bond payable is recorded at the face value and the interest is computed by applying ...
Q: Bayabas Company started operations on January 1, 2021. Following data are available as of June 30, 2...
A: Particulars Amount Purchase of Merchandise P9,000,000 Less: Ending inventory 1,500,000 Cost of...
Q: Accounting Question
A: Solution: Introduction: Process Costing is a determination of cost for each process. It is mainly u...
Q: Bayabas Company started operations on January 1, 2021. Following dataare available as of June 30, 20...
A: The accounts receivables indicates the amount owed by the customer to the company for purchasing goo...
Q: Prepare Profit and Loss statement for the year ended 2008 (along additional information). Prepare no...
A: Finance cost is considered as non-operating expenses because it is not incurred during the daily ope...
Q: The Income statement disclosed the following items for the current year: Depreciation expense $36,00...
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the so...
Q: Na nal company nas two two support departments A&B and two operating departments X&Y. for the first ...
A: Inter-departmental costs: It is the transfer price of the goods delivered by one department to anoth...
Q: Tax Return Brenda Peterson is single and lives at 567 East Street, Marshfield, MA 02043. Her Problem...
A: Note: It is assume that no claim single is $10,150.
Q: A manufacturing firm is choosing between two models of equipment that would lessen labor costs. Mach...
A: Machine A Year PVF @ 7% Cash flow Present Value of Cash flow 5 0.7130 1,500 ...
Q: Classifying Business Transactions Bob Jacobs opened an advertising agency. The following transaction...
A: IAS -7 classifies cash flow into three different types a) Cash flow from operating activities Thes...
Q: For each account, identify whether the changes would be recorded as a Debit (DR), or Credit (CR). Th...
A: All the asset and expense accounts are increased with a debit and decreased with a credit. On the ot...
Q: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new wareho...
A: Cost of land = Cash payment + Notes value + Legal fee + Taxes + Fee to remove building - Salvage val...
Q: Q2: What is Operational Cycle?
A: The management of the corporation uses to identify the operational cycle to get a rough idea about t...
Q: Below is the information off the preclosing trial balance for the Retiree Health Benefit Plan of the...
A: The question is based on the concept of business accounting
Q: Mortgage Investor Group is opening an office in Portland, Oregon Fixed monthly costs are office rent...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: The following information relates to Wal-Mart Corporation for the past accounting period Cost ...
A: Hi student Since there are multiple questions,we will answer only first three subparts. If you want ...
Q: Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each d...
A: Bank reconciliation statement is used to determine the differences between the bank statement balanc...
Q: Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished good...
A: Cost of goods sold budget is prepared using the cost of goods manufactured, finished goods inventory...
Q: Use this information for Kellman Company to answer the question that follow.The balance sheets at th...
A: Earning per share refers to the value of earnings in monetary terms as per the outstanding shares of...
Q: The net income reported on an income statement for the current year was $63,000. Depreciation record...
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by...
Q: On September 1st 2020 Mr. SAM started new repair service business. Listed below are thetransactions ...
A: JOURNAL Date Particular L.F. Debit Credit Sep 1 Cash A/c Dr. To Capital A/c 250000 25000...
Q: Classify the following items as (a) accrued revenue, (b) accrued expense, (c) unearned revenue, or (...
A: Accrued revenue is revenue that has been earned, but no cash has been received
Q: Bayan is paid $10 an hour for straight-time and $15 an hour for overtime. One week she worked 40 hou...
A: Normal working hours of a week is taken as 40 . Any overtime will be regarded as overhead and normal...
Q: The following cost data relate to the manufacturing activities of Chang Company during the just comp...
A: The cost of goods manufactured is computed as total cost incurred on production during year.
Q: Borrowed $89 from a bank, signing a short-term note. Note: Enter debits before credits. Transaction ...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Mr. Wonder purchased a machine amounting to P7,000,000 on January 1, 2013 providing the newest kind ...
A: If the entity classifies their assets as held for sale then the assets are recognized at fair value ...
Q: July 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a market (effective...
A: DATE PARTICULARS DEBIT CREDIT Year 1 Cash 63,532,267 JULY 1 Discount on bonds payable ($74...
Q: How would I calculate this?? please any help would be greatly appreciated!!
A: Break-even analysis is a technique used widely by production management. It helps to determine the u...
CALCULATING PRICE BY APPLYING A MARKUP PERCENTAGE TO COST
Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 15 percent. The job for a medium-sized dance club client included the following costs:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent situations: a. A computer service agreement in which a company pays 150 per month and 15 per hour of technical time b. Fuel cost of the companys fleet of motor vehicles c. The cost of beer for a bar d. The cost of computer printers and copiers at your college e. Rent for a dental office f. The salary of a receptionist in a law firm g. The wages of counter help in a fast-food restaurant h. The salaries of dental hygienists in a three-dentist office. One hygienist can take care of 120 cleanings per month. i. Electricity cost which includes a 15 per month billing charge and an additional amount depending on the number of kilowatt-hours used Required: 1. For each situation, describe the cost as one of the following: fixed cost, variable cost, mixed cost, or step cost. (Hint: First, consider what the driver or output measure is. If additional assumptions are necessary to support your cost type decision, be sure to write them down.) Example: Raw materials used in productionVariable cost 2. CONCEPTUAL CONNECTION Change your assumption(s) for each situation so that the cost type changes to a different cost type. List the new cost type and the changed assumption(s) that gave rise to it. Example: Raw materials used in production. Changed assumptionthe materials are difficult to obtain, and a years worth must be contracted for in advance. Now, this is a fixed cost. (This is the case with diamond sales by DeBeers Inc. to its sightholders. See the following website for information: www.keyguide.net/sightholders/.)Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)Your company uses an activity-based costing system for its overhead costs. The following data is from its activity-based costing system. Activity Rates Cleaning $ 7.58 per hour Job support $20.74 per job Client support $25 per client One particular client requested 25 jobs during the year that required a total of 150 hours. For this service, the client was charged $2,000. What is customer margin for this client? (Round to the nearest dollar.) $ 345 $1,681 $1,656 $ 320
- Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resourd ources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job OA. may increase overall sales as other jobs will be cross-subsidized B. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company C. is fairly billed because resources are allocated uniformly to all jobs D. will likely seek to do business with competitors E. is grossly underbilled for the job, while other jobs will be unfairly overbilled Resources Consumed Cost Driver Direct labour-hours Machine-hours Square metres of area Actual Level 150 1,700 80 - X Estimates of…V&S Mechanical sells and services plumbing, heating, and air conditioning systems. V&S's cost accounting system tracks two cost categories: direct labor and direct materials V&S uses a time-and-materials pricing system, with direct labor marked up 100% and direct materials marked up 50% to recover indirect costs of support staff, support materials, and shared equipment and tools and to earn a profit (Click the icon to view the cost information) Read the requirements Requirement 1. If Dryden presents Lowry with the replace or repair options, what price would he quote for each? Complete the table below to determine the price Dryden would quote for each option Labor Materials Total Price Repair option Replace option Requirements 1. if Dryden presents Lowry with the replace or repair options, what price would he quote for each? 2. If the two options were equally effective for the 3 years that Lowry intends to live in the home, which option would she choose? 3. if Dryden's objective is to…Calculating Price by Applying a Markup Percentage to Cost Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 14.9 percent. The job for a medium-sized dance club client included the following costs: Direct materials $ 5,000 Direct labor (partners and staff accountants) 90,000 Depreciation (using straight-line method) on Integrity's office building 50,000 Required: Calculate the price charged by Integrity ACcounting Firm to the dance club. If required, round to the nearest dollar.
- Total costs and unit costs, service setting. National Training recently started a business providing training events for corporations. In order to better understand the profitability of the business, the owners asked you for an analysis of costs—what costs are fixed, what costs are variable, and so on, for each training session. You have the following cost information: Trainer: $11,000 per session Materials: $2,500 per session and $35 per attendee Catering Costs (subcontracted): Food: $75 per attendee Setup/cleanup: $25 per attendee Fixed fee: $5,000 per training sessionNational Training is pleased with the service they use for the catering and have allowed them to place brochures on each dinner table as a form of advertising. In exchange, the caterer gives National Training a $1,000 discount per session. 1. Draw a graph depicting fixed costs, variable costs, and total costs for each training session versus the number of guests. 2. Suppose 100 persons attend the next event. What is…Identifying Fixed, Variable, Mixed, and Step CostsConsider each of the following independent situations:a. A computer service agreement in which a company pays $150 per month and $15 per hourof technical timeb. Fuel cost of the company’s fleet of motor vehiclesc. The cost of beer for a bard. The cost of computer printers and copiers at your collegee. Rent for a dental officef. The salary of a receptionist in a law firmg. The wages of counter help in a fast-food restauranth. The salaries of dental hygienists in a three-dentist office. One hygienist can take care of 120cleanings per month.i. Electricity cost which includes a $15 per month billing charge and an additional amountdepending on the number of kilowatt-hours usedRequired:1. For each situation, describe the cost as one of the following: fixed cost, variable cost,mixed cost, or step cost. (Hint: First, consider what the driver or output measure is. Ifadditional assumptions are necessary to support your cost type decision, be sure…William Financial Resources (WFR) manufacturers finance textbooks that explains finance concepts in layman terms for the average American. They have historically used a traditional system that allocated the manufacturing overhead costs based on machine hours. WFR is looking at switching to an ABC system in order to ensure accurate product costing. They first want to compare the traditional and ABC costing systems to determine if it is worth the effort and costs to implement and maintain. They estimate a total overhead cost of $459,000. Under the traditional system they identified machine hours as the cost driver, and estimated a total of 51,000 machine hours. They actually incurred 48,700 machine hours in production. The total applied MOH calculated under the more precise ABC system was $320,000. What is the difference in applied MOH between the traditional and ABC costing systems? Please provide your answer as an absolute (positive), to the nearest dollar, and do not include the "$"…
- Make a Decision: Analyze Antolini Enterprises' Job Costs Antolini Enterprises produces men's sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a similar style and size of sports coat. The data are as follows: Count Direct Labor Hours Direct Labor Rate per Hour Total DirectLabor Cost Job 107 11 5.06 $15.00 70.40 Job 125 15 7.65 15.00 108.00 Job 160 17 9.52 15.00 132.60 Job 192 9 3.69 18.00 58.50 a. Determine the direct labor cost per unit for each job. b. Interpret the trend in per-unit labor cost. c. Determine the direct labor hours per sports coat. d. Interpret what may be happening with Job 192. Be sure to show your work.The graphs below represent cost behavior patterns that might occur in a company’s cost structure. The vertical axis represents total cost, and the horizontal axis represents activity output Required:For each of the following situations, choose the graph from the group a–1 that best illustrates the cost pattern involved. Also, for each situation, identify the driver that measures activity output.1. The cost of power when a fixed fee of $500 per month is charged plus an additional charge of $0.12 per kilowatt-hour used.2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of sales made up to total annual sales of $500,000, and 7 percent of sales above $500,000.3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in excess of 3,000 units.4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition…A training company runs courses for students that vary in length between one day and four weeks. The size of classes varies between 5 students and 40 students. The company wants to set a price for its courses based on a mark-up on cost. What would be the most appropriate basis for measuring costs? Question 2 options: 1) Cost per student per day 2) Cost per course 3) Cost per student 4) Cost per day