Classify the following type of cost with necessary reasons: 1.A company had paid 15,50,000 to a marketing research company to find expected demand of the newly developed product of the company 2.A company has invested 50,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities. 3.Accountant of a cloth factory paid 88,000 for water which has been used for washing the clothes.
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Classify the following type of cost with necessary reasons:
1.A company had paid 15,50,000 to a
2.A company has invested 50,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities.
3.Accountant of a cloth factory paid 88,000 for water which has been used for washing the clothes.
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- Identify the type of cost with reasons: 1.A company had paid 8,00,000 to a marketing research company to find expected demand of the newly developed product of the company 2.A company has invested 25,00,000 in a project. The company could have earned 3,00,000 by investing the amount in proper government securities. 3.Accountant of a cloth factory paid 25,000 for water which has been used for washing the clothes.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 companySuppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank. Costs Product Cost / Period Cost 1. Depreciation on salespersons’ cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors’ salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are…
- Gwen is the managerial accountant in charge of Company A, which sellswater bottles. She previously determined that the fixed costs of Company A consist ofproperty taxes, a lease, and executive salaries, which add up to P500,000. Thevariable cost associated with producing one water bottle is P80 per unit. The waterbottle is sold at a premium price of P500. a. Formulate the total cost function.b. Formulate the revenue function.c. Formulate the profit function.d. Determine the breakeven quantity and the breakeven sales.e. Use the graphical method to determine the breakeven point.A 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 Taxes = 13%2) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below: 1. The salary of the CEO of the company is $250,000 per year. 2. Instead of producing the tables, the company could rent its factory space for $85,000 per year. 3. Salespeople are paid a commission of $23 for each table sold. 4. The depreciation on the machines used to make the tables totals $38,000 per year. The machines have no resale value and do not wear out through use. 5. The tables are made of iron that costs $250 per table. 6. The production line - on which workers are assembling the tables - is supervised by a production- manager who is paid $67,000 per year. 7. Four machine-hours are required to produce a table. Utility costs are $8 per machine-hour. 8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table. 9. The advertising expense of the year is $180,000 per year. It covers all the company's products. The company produced 100 tables and sold 80…
- Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Factory supervisors' salaries 2. Heat, water, and power consumed in the factory 3. Materials used for boxing products for shipment overseas. Units are normally boxed. 4. Advertising costs 5. Workers' compensation insurance for factory employeeSuppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost1. Depreciation on chairs and tables in the factory lunchroom 2. The wages of the receptionist in the administrative offices 3. Cost of leasing the corporate jet used by the company's executives 4. The cost of renting rooms at a Florida resort for the annual sales conference 5. The cost of packaging the company's productNation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service 560 480 280 470 350 460 320 430 490 380 350 340 4,910 409 Maintenance cost Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 3,000 3,590 4,000 3,220 3,170 3,070 $ 43,580 $ 3,632 PR 6-38 (Algo) Part 3 Compute the predicted maintenance cost... 3. Compute the predicted maintenance cost at 670 hours of activity. Answer is complete but not entirely correct. $ 49,192 X
- Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service Variable maintenance cost 560 480 280 470 350 460 320 430 490 380 350 340 4,910 409 $ Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 PR 6-38 (Algo) Part 2 What is the variable component of the maintenance cost? 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? Note: Round your answer to 2 decimal places. 3,000 3,590…Define each of the costs below as either sunk, opportunity, cash, or book: (a) Amount you could have sold a piece of equipment for last month. (b) Value claimed for tax purposes on a depreciated soda filling machine. (c) Price paid to a consultant for a feasibility study on a prospective project. (d) Monthly utility expense. (e) Salary you could have earned while you were on non-paid leave. (f) Value of floor space in a warehouse facility left empty the past 10 quarters.Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y = a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service Variable maintenance cost 520 470 250 490 340 470 330 410 480 380 390 340 4,870 406 Maintenance Costs $ 5,305 4,170 2,740 4,280 3,050 4,160 3,040 3,570 3,990 3,230 3,170 3,120 $ 43,825 $ 3,652 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? Note: Round your answer to 2 decimal places. ********* per hour