Vaughn Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) • $0 + $5x Direct labor (variable) - $0 + $13x Overhead (mixed) - $9.900 + $2x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs (a)
Q: The measurement of the efficiency of investment in inventory is referred to as: Question 6 options:…
A: The effectiveness with which one can use inventory to balance consumer demand and warehouse…
Q: 1. A company, extends credit to its customers. Total Sales is 2 Million, credit Sales is 850,000,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Using the information below, complete the operating cash flow section of the Statement of Cash Flows…
A: The cash flow statement is prepared to record cash flow from various activities during the period.…
Q: Creative Sound Systems sold investments, land, and its own common stock for $40 million, $16…
A: In this question, we will calculate Net Cash flows from financing activities.
Q: On May 1, Soriano Co. reported the following account balances along with their estimated fair…
A: Answer- Journal Entry to record the Soriano Acquisition - S.no Particular Debit Credit…
Q: Using the table in Exercise 10, calculate the net present value for each project shown below at the…
A: NPV means net present value.We can calculate NPV by- Present value of cash outflow-Present value of…
Q: d industry target?
A: From the cash budget, it is explained as,
Q: Coffman Company sold bonds with a face value of $1,000,000 for $880,496. The bonds have a coupon…
A: Bonds Payable - Bonds is the amount payable at fixed interest rate at fixed period. It is the long…
Q: 2. On July 15, 2017 Maky Company collected in advance cash of P96,000 from a tenant of her building.…
A: In accordance with accrual principle of accounting, revenues and expenses are recognized as and when…
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Formulas: Working Capital = Total Current assets - Total Current liabilities Current ratio = Total…
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: The question is related to Cash Budget. Cash Budget is summary of cash receipts and cash payments…
Q: Prepare Job-Order Cost Sheets, Predetermined OverheadRate, Ending Balance of WIP, Finished Goods,…
A: Job costing is a way of accounting that allows you to keep track of the costs of different projects…
Q: company produces a single product. Váriáble productioh costs are ed manufacturing overhead totals…
A: Introduction:- The computation of the ending inventory under variable costing as follows under:-…
Q: This is centered around "cash budgets" SALLAT Household Furnishings & Appliances is a family-owned…
A: The schedule of budgeted cash collection for trade receivables is an estimation of cash collection…
Q: "Do not do to others what you would not like yourself?" Give an example of experienced stance when…
A: Answer:- Golden Rule:- This golden rule taken from The Bible. The idea behind this rule is that one…
Q: Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a…
A: Working Sheets Loan 41000.00 rate 0.03 P.A tenure 72.00…
Q: Write a concise answer between 350 to 400 words for each question.
A: Audit refers to the process of checking the financial records of a company. The process of auditing…
Q: $ 3.00 per ounce $ 18.00 per hour $ 3.00 per hour $20.10 $12.60 $ 2.10 Direct materials 6.7 ounces…
A: The variance is the difference between standard and actual production dats of the current period.
Q: Calculate the interest expenses for the last 5 years (2016-2020)
A: Interest expenses are the finance costs in the income statement of a company.
Q: Refer to the information for Roberts Company above and on the previous page.Required:Prepare a…
A: The cash flow statement is a statement that shows the flow of cash and cash equivalents during the…
Q: Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1,…
A: Given that : Icebreaker purchase material from foreign supplies on 1 December 2020 and sales to be…
Q: Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions…
A: Trial balance: Trial balance is a record prepared to ascertain that debit balances are equivalent to…
Q: The stockholders’ equity accounts of Willis Corporation at January 1 appear below: 8 Percent…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: At December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible…
A: Formula: Allowance for Uncollectible accounts amount = Ending Accounts receivable x Allowance for…
Q: Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020:…
A: Req: 1 Date General Journal Debit Credit Jan. 01, 2020 Debt Investment - Jaguar Corp.…
Q: Issuance of Materials On May 7, Jernigan Company purchased on account 530 units of raw materials at…
A: Journal entries are the basic method of recording transection. It is used to prepare the ledger and…
Q: Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: bank overdraft R22000, trade and other payables R99000, portion of loan to be paid next month R30000…
A: Liabilities refers to the obligations that are required to be fulfilled by the entity within a…
Q: Based on your accounting experience, advanced knowledge and practical experience with concepts…
A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement is to…
Q: if land and buildings are R100000, vehicles R75000, equipment 80000 and cash and cash equivalent…
A: Non-current assets are assets that are not expected to be acquired within one year of accounting.…
Q: sed on your analysis in requirement 1, which product or products should be sold at the split-off…
A: A split-off point occurs when formerly jointly created components are now manufactured separately,…
Q: Kling Company was organized in late 2019 and began operations On January 2, 2020. Prior to the…
A: Expenses refer to the costs incurred by the entity over a specific period of time as a consideration…
Q: 1.D Balance off the accounts and prepare a Trial Balance On June 2019, Started Business with capital…
A: A trial balance is a bookkeeping worksheet in which all ledger balances are aggregated into equal…
Q: thod, and reported net income of $47,300. Determine what the net income would have been if the…
A: The allowance method involves setting money aside for future bad debts that are predicted to arise.…
Q: What summary of financial performance can you conclude based on data given?
A: Financial performance is the analysis of the performance of company during the year for which it is…
Q: A schedule of budgeted cash collections for trade receivables (sales on account) for each of the…
A: Below mentioned budget needs to be prepare budgeted cash collections for trade receivables…
Q: Accounts Receivable Ledger Control Account Amount Amount Particulars Particulars (in $) (in $) Debit…
A: 1. Determination of net amount owed by credit customers The debit balance of $137,000 in the…
Q: Management has allocated common fixed expenses to the Divisions based on their sales. The break-even…
A: Breakeven Point It is the point of sales where company recovers its fixed cost and where profit of…
Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…
Q: On September 1, 2021, Alled Moving Corp. borrows $90,000 cash from First National Bank. Alled signs…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Task 9. The company produces product A. | Calculate the next month's costs, taking into account that…
A: Calculation of next month's costs: Direct Materials (see note) 1512.00 Direct Labour Costs (see…
Q: Consider the following information pertaining to OldWest's inventory: Net Realizable Value $157…
A: Formula: Inventory value = Quantity x lower of cost or NRV
Q: During Year 3, Solomon Corporation reported after-tax net income of $3,635,000. During the year, the…
A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…
Q: Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has…
A: Final advantage (disadvantage) of buying 20000 carburetors will be difference of relevant cost to…
Q: Trew Company plans to issue bonds with a face value of $904,500 and a coupon rate of 6 percent. The…
A: Solution: Face value of bond = $904,500 Stated interest rate = 6% Market interest rate = 8.5% Period…
Q: The Cheesecake Factory Incorporated is publicly held and had more than 93 million common shares…
A: Treasury stock are those outstanding stocks which are repurchased by the entity from their…
Q: Subway, the fast food restaurant franchise, recently announced it is bringing back the "$5 Footlong"…
A: Requirement 1:- Variable Costs :- Variable costs are operating costs that change in proportion to…
Q: Folsom Company manufactures specialty tools to customer order. There are three producingdepartments.…
A: A departmental overhead rate is a recurring fee based on the unit of activity produced by a…
Q: Databases maximize : this means independence; applications cannot access data associated with other…
A: Ans. Independence; applications and data are not linked to each other, so all application are able…
Q: For the year ending December 31, 2022. Sheridan Inc reports net income S147,000 and cash dividends…
A: Retained earnings: Retained earnings mean the cumulative balance of earnings/net profit after tax of…
Step by step
Solved in 2 steps
- The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department? c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is 18 in department A, 22.50 in department B, and 12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase in the total contribution to profit if overtime is used?Joe’s Lawn Care Service primarily mows lawns for residential customers. Management has determined direct labor hours is the primary cost driver and has developed the following cost equations based on direct labor hours: a. Prepare a flexible budget for each of the following activity levels: 990, 1,080, 1,170, and 1,260 direct labor hours.1 Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price 3. TL 30 Unit Variable Cost 20 Annual Fixed Operating Expenses 47,500 Required: a) Determine the sales volume in units and TL amount that would be required to attain a TL 12,500 profit. Verify your answer by preparing an income statement using the contribution margin format. b) LDI is considering the implementation of a quality improvement program. The program will require a TL 2.50 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional TL 5,000 for advertising. Assuming that the improvement program will increase sales to a level that is 1,500 units above the amount computed in requirement a, should LDI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. c) Determine the new break-even point volume of units and sales in TL as well as the margin of safety…
- Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The vertical axis represents total cost, and thehorizontal 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 chargedplus an additional charge of $0.12 per kilowatt-hour used2. Commissions paid to sales representatives. Commissions arepaid at the rate of 5 percent of sales made up to total annual salesof $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 inexcess of 3,000 units.4. The cost of surgical gloves, which are purchased in incrementsof 100 units (gloves come in boxes of 100 pairs).5. The cost of tuition at a…Define the following terms with example. RELEVANT COSTSUNK COSTOPPORTUNITY COSTAVOIDABLE AND UNAVOIDABLE COSTINCREMENTAL COSTBREAK-EVEN POINT(B)KPR manufactures installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: In RsAmount Sales 80,000 Variable expenses 32,000 Contribution margin 48,000 Fixed expenses -38,000 Net operating income 10,000 Required:Compute the company’s degree of operating leverage.Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales.Verify your estimate from part (2) above by constructing a new contribution format income statement for the company assuming a 5% increase in sales.
- 1 viyalization-sustaining activity. The following COSTS will be assigned using the activity-based Costing system. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses oints Office expenses Administrative expenses Total cost $ 920,000 350,000 230,000 260,000 120,000 420,000 $2,300,000 eBook The distribution of resource consumption across the activity cost pools is as follows: Hint Pickup and Travel Delivery Customer Service Other Totals Driver and guard wages 50% 35% 10% 5% 100% Print Vehicle operating expense 70% 5% 0% 25% 100% Vehicle depreciation 60% 15% 0% 25% 100% Customer representative salaries and 0% 0% 90% 10% 100% expenses Office expenses 0% 20% 30% 50% 100% Administrative expenses 0% 5% 60% 35% 100% Mc Graw Hill Required: Complete the first stage allocations of costs to activity cost pools. Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office…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…S Homework A Saved Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,100 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling $ 23,000 6,000 159,500 149,000 165,960 *Incurred only in December. Peak activity of 2,400 tons occurred in June, resulting in mining labor/fringe benefit costs of $348,000, royalties of $292,000, and trucking and hauling outlays of $205,960. The trucking and hauling outlays exhibit the following behavior: Less than 1,100 tons From 1,100-1,599 tons From 1,600-2,099 tons From 2,100-2,599 tons $145,960 165,960 185,960 205,960 Antioch uses the high-low method to analyze costs. Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or…
- Classifying Costs as Product or Period Costs Suppose 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. 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 not normally boxed.) 9.…(a) Prepare a make of buy uhury Gelb Co. currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.20 for direct materials and $0.75 for direct labor. Incremental overhead to make this part is $1.40 per unit. The company can buy the part for $3.50 per unit, (a) Prepare a make or buy analysis of costs for this (b) Should Gelb make or buy the part? part. Exercise 23-2 Make or buy P1Total 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…