Acc 206 Essay

3- As we can see the company would loss 0.52 cent per 1 kg if it decides to sell at 6.85 price and allocates the fixed expenses at 1.20 per 1 kg.

* The current amount of patients treated for liver transplant volume totaled 120 patients annually, with a reimbursement rate of $140,000, providing the hospital with the ability to handle 30 more patients before the fixed costs would increase. 120 +30= 150. This means that the hospital can sufficiently handle a

13. If the selling price is $22 per unit, what is the contribution margin per unit sold?

Currently the clinic sees about 45 patients per day and they have capacity to handle 85. If they continue how they are operating the clinic is looking at a loss of $3,173. At this rate the clinic will not be able to make a profit in spite of inflation over the next couple years.

DUE Friday November 1, 2013– This project is due on November 1st before 4:00 pm and is to be submitted in the Accounting Lab – room 200 in the Rands House. The hours for submission of and help with the project will be posted on the class Blackboard site. You will sign your project in to create a record of its being submitted. Be sure your name and the name of your TA are on the front page of the project.

Shaving 5% off the estimated direct labor-hours in the predetermined overhead rate will result in an artificially high overhead rate. The artificially high predetermined overhead rate is likely to result in overapplied overhead for the year. The cumulative effect of overapplying the overhead throughout the year is all recognized in December when the balance in the Manufacturing Overhead account is closed out to Cost of Goods Sold. If the balance were closed out every month or every quarter, this effect would be

Using the average data given (2010) of 45 patients per day, average $130 revenue per patient, and a cost of $3.50 per patient. The Forecasted P&L Statement is shown below.

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

The capitated managed care agreement with the city allows the hospital to receive $250 per month per family for taking care of the 300 city employees and their families, whether they are sick or not. Utilizing the full cost method, the hospital incurs a profit loss of $51,898,395, meaning that a rate increase of $14,166.22 is required in order to cover the full cost for the year. When applying the differential cost the hospital also incurs a profit loss of $15,119, and a rate increase of $3,949.72 is required in order to cover the differential cost for the year.

The product sells for $60 per unit and has a contribution margin ratio of 40%. The company 's monthly fixed expenses are $28,800.

Using the intercompany-billing rate per hour of $400 and the intercompany demand of 205 hours we calculate revenue and expenses.

10.  (TCO F) Boulevard Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company manufactures tools to customer specifications. The following data pertain to Job 1501:

b. If we assume 2004 prices of 45.91 €/mtt. What does the new break-even level do to the utilization rate, given its new capacity level? What can you say about its effect upon Aget’s pricing?

13. In this problem, there are three possible overhead allocation bases: direct labor (present system), machine hours (the proposed system), and number of batches. First, calculate product costs under each of the three allocation schemes: (a). Direct labor cost as the allocation base (present system): Bluethings 120,000 .50 $60,000 95.238% 342,857 60,000 $462,857 $ 3.857 Graythings 6,000 .50 $3,000 4.762% 17,143 3,000 $23,143 $