Lavage Rapide is a Canadian company that owHs dnu upe provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation $ 8.80 $ 0.15 $ 0.20 $ 0.30 $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Rent Administrative expenses $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Roguired:
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- 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. 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)How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipmentSan Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell San Clemente the subcomponent for $2.85 a unit. If San Clemente accepts the offer, by how much will net income increase (decrease)?
- Accounting PH enterprises manufactures automobiles accessories and parts. Following are the informationrelating to the production of 3 lakh units.Direct Material cost 2400000rsDirect Labor cost 32,00,000rsVariable factory OH 20,00,000rsFixed factory OH 20,00,000rsThe purchase price of the component is Rs. 30. The fixed OH would continue to be incurred evenwhen the component is brought from outside, although there would have been reduction in thecost to the extent of Rs. 10 lakh. Decide whether the parts should be made or bought underthe current situation If the released capacity can be rented for Rs. 8 lakhKeller Company, a manufacturer of rivets, uses absorption costing Keller’s manufacturing costs were as follows: Direct materials and direct labor $800,000 Depreciation of machines 100,000 Rent for factory building 60,000 Electricity to run machine 35,000 How much of these costs should be inventoried? $800,000 $835,000 $935,000 $995,000Muscat Pharmacy had sales of OMR 1,000,000 (50,000 units) for 2019. The variable expenses were OMR 600,000 and fixed expenses were OMR 300,000. What is the contribution margin per unit?
- M&S Company incurs the following costs to produce 10,000 units of a subassembly part Direct materials OMR 0.84 Direct labor 1.125 Variable overhead 1.26 Fixed overhead 1.62 An outside supplier has offered to sell M&S Company the subcomponent for OMR 2.85 a unit. If M&S Company accepts the offer, by how much will net income increase (decrease)? Select one: O a. None of the answers are correct Ob. OMR (8,850) Oc. OMR 19,950 O d. OMR 3,750 e. OMR (2,850)San Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell San Clemente the subcomponent for $2.85 a unit. If San Clemente accepts the offer, by how much will net income increase (decrease)? ($8,850) decrease ($2,850) decrease O $19,950 increase $3,750 increaseJake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May but actually worked 2,700 repair-hours. The company expects its sales to be $54.00 per repair-hour. Required: Compute the company's activity variances for May. Note: 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. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net…
- Luca Co offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment. Hours of Operating Time 4,000 5,000 8,000 10,000 Total Costs: Variable Costs $ 20,000 ? ? ? Fixed Costs 82,000 ? ? ? Total Costs $102,000 ? ? ? Cost per hour: Variable cost ? ? ? ? Fixed cost ? ? ? ? Total cost per hour ? ? ? ? What is the estimated total cost per hour at a volume of 8,000 hours?Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: cleaning supplies Electricity Maintenance Mages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $1,200 $ 4,400 $8,100 $ 2,100 $1,800 Rent Administrative expenses Total expense Bet operating income Cost per Car Washed $0.80 $0.10 $ 0.20 $0.30 8,400 $56,050 7,140 2,000 1,900 7,250 0,100 2,300 2,032 30,722 $ 25,328 $ 0.04 Required: Calculate the company's revenue and spending…Juanita Company must decide whether to make or buy some of its components for the appliances it produces. The costs of producing 166,000 electrical cords for its appliances are as follows: $90,000 $32,000 $20,000 $24,000 Direct materials Variable overhead Direct labor Fixed overhead Instead of making the electrical cords at an average cost per unit of $1.00 ($166,000/166,000), the company has an opportunity to buy the cords at $0.90 per unit. If the company purchases the cords, all variable costs will be eliminated. What is the total relevant cost per unit in deciding either to buy or produce the component? After considering the incremental costs and benefits, should the company continue to produce or buy the cords from the supplier?