2016 40 2017 50 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 ÷ row 5) $32,000 24,000 $30,000 27,000 $35 60 $36 60 $180,000 $3,000 $168,000 $2,800 Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. 1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly. Describe key measures you would include in Compton's balanced scorecard and your reasons for doing so. Required

2016 40 2017 50 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 ÷ row 5) $32,000 24,000 $30,000 27,000 $35 60 $36 60 $180,000 $3,000 $168,000 $2,800 Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. 1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly. Describe key measures you would include in Compton's balanced scorecard and your reasons for doing so. Required

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.
Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.
According to the information given in the table below, which of the following is Cost of Production? Raw materials consumed 184000 Wages 56000 Factory overhead 37 % of prime cost Interest expense 9500 Taxes 3300 Select one: a. 339300 b. 341500 c. 336000 d. 328800
Solve the questions with the help of the data given below: Type of Data 2015 2016 Units of AIIPad produced and sold 800 900 Selling price $450 $430 Pounds of direct material used 3,200 3,300 Direct material cost per pound $35 $35 Manufacturing capacity in units 12,000 11,000 Total conversion costs $1,800,000 $1,650,000 Conversion cost per unit of capacity $150 $150 Selling and customer service capacity customers 90 customers Total selling and customer service costs $495,000 $495,000 Selling and customer service capacity cost and customer $500 $550 Assuming Titan had 70 customers in 2015 and 80 customers in 2016, 1. Calculate the operating income of Titan for 2015 and 2016; Particulars 2015 2016 Revenue; 800*450;900*430 360,000…
Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
How do I figure out the pretax net nonoperating expense ? (in thousands) Dec. 29, 2016 Dec. 30, 2015 Revenues Circulation $ 880,543 $ 851,790 Advertising 580,732 638,709 Other 94,067 88,716 Total revenues 1,555,342 1,579,215 Production costs Wages and benefits 363,051 354,516 Raw materials 72,325 77,176 Other 192,728 186,120 Total production costs 628,104 617,812 Selling, general and administrative costs 721,083 713,837 Depreciation and amortization 61,723 61,597 Total operating costs 1,410,910 1,393,246 Restructuring charge 14,804 0 Multiemployer pension plan withdrawal expense 6,730 9,055 Pension settlement charges 21,294 40,329 Early termination charge 0 0 Operating profit 101,604 136,585 Loss from joint ventures (36,273) (783) Interest expense, net 34,805 39,050 Income from continuing operations…
Capiz Company's 2020 manufacturing costs were as follows: Direct materials P70,000; Direct labor P50,000; Depreciation of manufacturing equipment P85,000; Depreciation of factory building P50,000; Janitor's wages for cleaning factory premises P15,000. How much of these costs should be inventoried using the throughput accounting? a.P 50,000 b.P 70,000 c.P120,000 d.P270,000
MBA 515 Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:DirectLabor-Hours per Unit AnnualProductionHubs 0.70 16000 unitsSprockets 0.30 51000 unitsAdditional information about the company follows:1. Hubs require $31 in direct materials per unit, and Sprockets require $13.2. The direct labor wage rate is $17 per hour.3. Hubs require special equipment and are more complex to manufacture than Sprockets.4. The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets TotalMachine setups (number of setups) $28,710 145 116 261Special processing (machine-hours) $136,500 3,900 0 3,900General factory (organization-sustaining) $194,800 N/A NA NA1. Compute the activity rate for each activity cost pool.2. Determine the unit product cost of each product according to the ABC system.Requirement 1.Compute the activity rate for each activity cost pool.Activity Cost Pool…
6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs Machine maintenance $430 Supplier training 21 Design reviews 110 Total prevention costs 561 7 % 27 % Appraisal costs Incoming inspections 111 Final testing 327 Total appraisal costs 438 5 % 21 % Internal failure costs Rework 236 Scrap 132 Total internal failure costs 368 4 % 17 % External failure costs Warranty repairs 168 Customer returns 570 Total external failure costs 738 9 % 35 % Total quality costs $2,105 25 % Total revenues $8,280 12/31/2016 (in thousands) % of % of total Actual revenues quality costs $430 112…
How do you find the net benefit in this? show the method Relevant Cost Amount Sales Revenue (12000 x $31.50) $378,000 Less: Direct Material (12000 x ($16.40-$4.20)) $146,400 Direct Labor (12000 x $4.50) $54,000 Variable Manufacturing Overhead (12000 x $7.50) (Notes) $90,000 Additional setup costs $8400 Special equipment cost $5800 Net benefit $73,400 Notes: Total manufacturing overhead rate $40 per hour Less: Fixed manufacturing overhead (1500000/60000) $25 per hour Variable manufacturing overhead $15 per hour Required machine hour for one unit is half-hour i.e. $7.5 per unit
What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary