Franz Consulting started operations on January 1. During January, Franz consulting had 120 hours of professional service. During February, the activity was 150 hours. Consulting software subscription cost for these two levels of activity usage are as follows: January February Hours of professional service 120 Hours 150 Hours Consulting software subscription cost $ 870 $1,050 The cost classification of consulting software subscription cost using hours of professional service as the activity driver is.
Q: [The following information applies to the questions displayed below.] Sound Investments,…
A: The budget is prepared to estimate the requirements for the period.The cash receipts schedule is…
Q: Applying the lower-of-cost-or-market method to each item of inventory, what should the total…
A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be valued at lower of cost or…
Q: ces Mc Graw Hill Problem 7-3B (Algo) Calculate and record goodwill (LO7-2) Northern Equipment…
A: Accounts receivable are the money that is owed by the customer or buyer from the business who has…
Q: Partial financial statements for 2023 and 2024 for Bramble Company are given below: Balance Sheet…
A: Common stock is the amount of money invested by the common shareholders in the business entity. It…
Q: The Bake Shop earned $500 in revenue, incurred $200 in expenses and paid $400 in salaries. What is…
A: The objective of the question is to calculate the net income or net loss for The Bake Shop. Net…
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: In order to compute financial advantage (Disadvantage) of accepting special order we should compare…
Q: Factory Overhead Cost Budget It Is This Company budgeted the following costs for anticipated…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Oki Company pays $294,100 for equipment expected to last four years and have a $30,000 salvage…
A: Journal entries are used in accounting to record the financial transactions of a business. They…
Q: K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the…
A: The objective of this question is to calculate the Net Present Value (NPV) of the machine purchased…
Q: Waterway Company sells one product. Presented below is information for January for Waterway Company.…
A: Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…
Q: The use of perpetual inventory systems is preferred where a: Multiple Choice large number of…
A: Large number of inexpensive inventory units exist.Explanation:The use of perpetual inventory systems…
Q: Dowell Company produces a single product. Its income under variable costing for its first two years…
A: The income statement can be prepared using the different methods as variable and absorption costing.…
Q: Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs…
A: In April, the anticipated total cash payments for selling and administrative expenses are set at…
Q: In its first year of operations a company produced and sold 70,000 units of Product A and 17,500…
A: Overhead is the expenses incurred in the production of units other than direct material and direct…
Q: Only typed solution
A: The objective of the question is to derive the steady state capital per worker (k) from the given…
Q: Blossom Equipment Sales Company, which sells only on account, had a $120,000 balance in its Accounts…
A: The concept related to the given case in relation to accounting for expected credit losses is guided…
Q: hi, can you helo me with Calculatingthe following ratios for Year 2: (a) profit margin ratio (b)…
A: Profit margin ratio is one of profitability ratio which shows how much net income is being earned on…
Q: Prepare journal entries to record these transactions: (Round your answers to 2 decimal places.) Oct.…
A: Notes receivable are a variation of accounts receivable, in which a business essentially makes a…
Q: Wages Cleaning supplies pany for the year is $350,000 which includes the following costs: Cleaning…
A: Activity-based costing:Activity-based costing is a method used to allocate overhead and indirect…
Q: Munoz Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its…
A: The overhead rate is a cost that is allocated to the product or service at the time of production.…
Q: On 13 February 20X5, Reekwa Company purchased an office tower for $31.1 million. The office is a…
A: At elimination method the revaluation in the asset is revalued on the basis of the accumaled…
Q: Garrett Company has the following transactions during the months of April and May: Date Transaction…
A: FIFO is an inventory valuation method that assumes the first items purchased or added to inventory…
Q: Attached are images containing information to build what is essentially an encompassing financial…
A: In a business, book-keeping is the recording of the business transactions in the books of accounts.…
Q: The unadjusted trial balance for Novak Corp. appears as follows: Novak Corp. Trial Balance December…
A: Adjusting entries are journal entries that are passed at the end of an accounting period to adjust…
Q: Money accumulated in excess of funds required to secure life's necessities, which may be used for…
A: Managing Particular finances involves icing that one's income is allocated effectively to cover…
Q: Pronghorn Island Corporation began operations on April 1 by issuing 52,200 shares of $5 par value…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: elta Company produces a single product. The cost of producing and selling a single unit of this…
A: A special order is a one-time order that is received from not a regular customer. Special order…
Q: Pina Colada Limited began operations on January 2, 2022. Pina Colada employs 9 individuals who work…
A: The term "liability for vacation pay and sick pay" describes an employer's need to reimburse staff…
Q: On the basis of the data shown below: Item Inventory Quantity Cost per Unit Market Value per Unit…
A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…
Q: T. L. Jones Trucking Services establishes a petty cash fund on April 2 for $500. By the end of…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: On January 1, 20X6, Plus Corporation acquired 90 percent of Side Corporation for $180,000 cash. Side…
A: Investment is the allocation of resources, generally money, with the goal of earning profit or…
Q: The following three identical units of Item Alpha are purchased during April: Cost Flow Methods Item…
A: FIFO (First-in-first-out):FIFO (“First-In, First-Out”) refers to the method used to calculate…
Q: Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Estimate the ending inventory using the retail inventory method. Re 74%) [Please note it is
A: Retail inventory method is used by retailers to find the estimated ending inventory balance.This…
Q: Blossom Tar and Gravel Ltd. operates a road construction business. In its first year of operations,…
A: A Interodudeferred tax asset is an item on the balance sheet that results from the overpayment or…
Q: Give me correct answer with explanation.m Don't upload any image
A: The objective of the question is to journalize the issuance of common and preferred shares by…
Q: Carla Vista Resellers Ltd. (CVRL) sells gently used and refurbished appliances. The company provides…
A: Image attached with full explanation.Explanation:The $69,120 charged to customers for the extended…
Q: Using the tax table, determine the amount of taxes for the following situations: (Do not round…
A: Taxable income: A person's or an organization's taxable income is the amount left over after any…
Q: 4. Anderson, a farmer, orally agreed to buy a used tractor from the Copeland Equipment Company for…
A: A quasi contract is a legal obligation—not a traditional contract—which is decided by a judge for…
Q: Ingabire Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen…
A: See answer in the explanation.Explanation:To post the journal entries to the appropriate T-accounts,…
Q: 10. On January 1, 2017, Fryer Company enters into a contract to supply 600 pastry frying machines to…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Accounts receivable management This table, , shows that Blair Supply had an end-of-year accounts…
A: It is the time taken to convert the accounts receivable into cash. The lower the ratio, the company…
Q: Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2)…
A: First In First Out :Under the FIFO method, it is assumed that the first items purchased or produced…
Q: Present value of 1 for 8 periods at 10% 0.46651 Present value of 1 for 8 periods at 12% 0.40388…
A: In the context of bond valuation, the present value of the principal represents the current worth of…
Q: What is the cash break-even quantity of a four-year project where price is $55 per unit, variable…
A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
Q: MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is…
A: The incremental effect on the profit after the elimination of one product is either a gain or loss…
Q: Wally's Party Warehouse provides wholesale party equipment and materials to party shops. In 2022,…
A: The objective of the question is to calculate the balance in the Estimated Warranty Liability…
Q: The monthly salaries for December and the year-to-date earnings of the employees of Bush Consulting…
A: A portion of an employee's earnings is contributed towards Medicare by both employee and employer.…
Q: Paola and Isidora are married; file a joint tax return; report modified AGI of $136,025; and have…
A: To claim the American Opportunity credit, the student must be pursuing a degree or other recognized…
Step by step
Solved in 3 steps with 1 images
- Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at 500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: a. Prepare an income statement according to the absorption costing concept for the month ending February 28. b. Prepare an income statement according to the variable costing concept for for the month ending February 28. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)?
- A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is paid 32,000 per year and is able to process 8,000 bills. Last year, 27,360 bills were processed by the four agents. Calculate the unused capacity in terms of number of bills. a. 27,360 b. 4,640 c. 8,000 d. 32,000The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
- During the first month of operations ended May 31, Big Sky Creations Company produced 40,000 designer cowboy boots, of which 36,000 were sold. Operating data for the month are summarized as follows: During June, Big Sky Creations produced 32,000 designer cowboy boots and sold 36,000 cowboy boots. Operating data for June are summarized as follows: Instructions 1. Using the absorption costing concept, prepare income statements for (a) May and (b) June. 2. Using the variable costing concept, prepare income statements for (a) May and (b) June. 3. a. Explain the reason for the differences in operating income in (1) and (2) for May. b. Explain the reason for the differences in operating income in (1) and (2) for June. 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate more profitably in May or in June? Explain.During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
- Adams Air is a large airline company that pays a customer relations representative $6,000 per month. The representative, who processed 1,160 customer complaints in January and 1,330 complaints in February, is expected to process 24,000 customer complaints during the year. Determine the total cost of processing customer complaints in January and in February. Month Allocated Cost January FebruaryRamsey ltd offers on-site, household appliance repairs to householders. Each month, there are 2300.00 direct labour hours worked on repairs to washing machines, dishwashers and freezers. During the most recent month, the business incurred the following expenses: £ Direct materials 8,000 Direct labour 30,000 Overheads 20,000 During the month, a dishwasher was repaired for a customer. Replacement parts cost £135 and a technician took 5 hours to carry out the repair work. The business uses the direct labour hour basis for overhead recovery and charges an additional 40% to the full cost of a job as a profit mark-up. What should be the price charged to the customer for repairs to the dishwasher? (All calculations to nearest pence.) Question content area bottom Part 1 The price charged to the customer for repairs to the dishwasher is £enter your response here .Standards for Nonmanufacturing Expenses CodeHead Software Inc. does software development. One important activity in software development is writing software code. The manager of the WordPro Development Team determined that the average software programmer could write 25 lines of code in an hour. The plan for the first week in May called for 4,650 lines of code to be written on the WordPro product. The WordPro Team has five programmers. Each programmer is hired from an employment firm that requires temporary employees to be hired for a minimum of a 40-hour week. Programmers are paid $32.00 per hour. The manager offered a bonus if the team could generate more lines for the week, without overtime. Due to a project emergency, the programmers wrote more code in the first week of May than planned. The actual amount of code written in the first week of May was 5,650 lines, without overtime. As a result, the bonus caused the average programmer's hourly rate to increase to $40.00 per hour during…