CBC Inc is currently operating at 80% capacity. Its machine and factory has a maximum production capacity of 100,000 units per month. What is the total maximum number of units to be accepted from a special order before the Company will incur opportunity cost from the contribution margin of regular customers?
Q: Clock Company showed the following errors in their account during December 31, 2021: Dividends of P...
A: Solution Concept Failure to record dividend has no impact on the net income as dividend paid is the ...
Q: Nelson Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its wo...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Before processing a batch of invoices, the accounts payable clerk sums the quantities billed. The su...
A: Accounts payable forms a part of current liabilities of the business and represent the amount due to...
Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? O No e...
A: Accrued expenses are expenses that are recognised in the books of accounts before they have been pai...
Q: Isla runs a bicycle shop in Wellington. During the tax year ending 30 June 2021, her records indicat...
A: The taxable income of an individual is the total receipts less all the expenses incurred to earn tho...
Q: What was the Federal Estate Tax: Prior to the Bush Tax Cuts? After the Bush Tax Cuts? Did the Obama ...
A: Administration Exemption level Tax Rate Years in Effect 1. Prior to Bush Tax Cuts (Bil Clinton, 19...
Q: On January 1 of the current year, the Jordan Morris Company purchased office machinery for $91,000. ...
A: The expenses charged to income statement as estimated cost of using fixed asset is called depreciati...
Q: Vaughn Manufacturing has outstanding accounts receiva year of $6.50 million. There is also a debit b...
A: When the amount of money is no longer collectible and the amount remains due is known as bad debt.
Q: In year 2022, payment of rent for the month is debited to Rent Income. What is the effect of the err...
A: Correct entry: Debit: Rent expense Credit: Cash Entry recorded: Debit: Rent income Credit: Cash ...
Q: The collection of accounts of Customer Alexander is recorded as a credit to the ledger of Customer S...
A: This error is a self balancing error. One account is credited instead of other. It auto balances the...
Q: Prepare the journal entries to record the pension expense and the company's funding of the pension p...
A: Journal entry is the first step in recording financial transactions in the books of company. It must...
Q: Recording of next year's purchases as purchases of the current year will Group of answer choices ov...
A: Since there are multiple questions posted we will answer the first question for you as per the guide...
Q: Which statement is correct regarding the source of business income? Which statement is correct regar...
A: Regarding the source of business income, Following is the correct answer.
Q: Prepaid Insurance of P 60,000 was overlooked at the end of 2021. What would be the adjusting entry i...
A: Note: overlooking of prepaid insurance means insurance expense are understated, due to which income ...
Q: CALIFORNIA CORP. manufactures candles in various shapes, sizes, colors, and scents. Depending on the...
A:
Q: What is the effect of omission of accrued income in assets at the end of the year of error? a. Unde...
A: Accrued income: Increases assets Increases Owners' equity
Q: Three partners A R and C shared the profit in a software busin
A: The meaning of partnership business is two or more persons bringing the capital to form the business...
Q: Which of the following is not a counterbalancing error? Non-recognition of the unused portion of of...
A: Counterbalancing errors are those errors which will counter balance automatically in the next year. ...
Q: True or False A NY LLC owned solely by a NY nonresident individual is sold during the tax year. ...
A: The following are subject to tax on NY source income: Non-resident individual Estate Trust Part-yea...
Q: Inventory at December 31, 2021 was understated by P 15,000. What would be the adjusting entry if the...
A: As per relevant accounting standards, whenever a error of previous year identified in the current ye...
Q: 17. AAA Inc. produces three products. Production and cost information is as follows: Model Y Model O...
A: Activity based costing means where the product is valued on the basis of actual direct material , di...
Q: Atlantic Company reported the following net income: Year 2021 - P 4,000,000, and year 2022 - P 5,000...
A: Given net income for 2022 before adjusting errors is P 5,000,000. The errors found during the year n...
Q: As per the accrual concept of accounting, any financial or business transaction should be recorded: ...
A: Lets understand the basics. Accrual concept of accounting is one of the concept of accounting in whi...
Q: Standards deals with the principles and methods of determining depreciation and amortization cost: C...
A: CAS (Cost Accounting standards) are set of standards used for determining cost of goods manufactured...
Q: The payment of supplier’s account is debited to accounts receivable. What is the effect of the error...
A: The Account Receivables are assets for the firm and Account Payables are liability for the firm. The...
Q: beginning inventory and purchases of EZslide snowboards during September. During the same month 103 ...
A: Solution: Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods av...
Q: Which of the following is not a characteristic of non-counterbalancing error? Group of answer choic...
A: Non counter balancing errors are those errors which will not be automatically corrected in the next ...
Q: On January 1, year 1, Bray Company purchased for P 240,000 a machine with a useful life of ten years...
A: Revised depreciation = (net carrying value - residual value) / remaining useful life Where, Remaini...
Q: Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the approva...
A: GIVEN Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the...
Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: If the income statement error is discovered in a subsequent accounting period, what action is to be ...
A: Solution Nominal account is a general ledger account pertaining to all income , expenses , losses an...
Q: What is the effect of omission of accrued income in retained earnings at the end of year 2? a. Unde...
A: A basic Accounting equation is given as under; Assets = Equity + Liabilities Meaning, Total As...
Q: The accountant for Lucky Corporation has developed the following information for the company's defin...
A: Solution Working note Pension expense- Service cost 1000000 Add amortised prior service cost ...
Q: Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget ...
A: Static budget = Actual Results +/- Variances Flexible budget are calculated on the basis of the unit...
Q: On January 1, year 1, Bray Company purchased for P 240,000 a machine with a useful life of ten years...
A: Solution Concept When there is change in depreciation method and the change is justifiable , the car...
Q: PROBLEM 7: KUSINA Inc. had the following long-term receivable account balances at December 31, 2015....
A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to restr...
Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and issui...
A: Equal annual installments of noninterest-bearing note payable(P4000000 / 4) 1000000 Rate of Intere...
Q: If the statement of financial position error is discovered in the year of error, what action is to b...
A: Errors mean the data entered in the financial system is not as per accounting standard. There has be...
Q: On January 1, 2025, Ariana Corporation issued its 8%, 5-year convertible debt instrument with a face...
A: The correct answer is for the above question is given in the following steps for your reference.
Q: otal Manufacturing costs are also known as product costs. Which of the following best describes thos...
A: Solution Concept Total manufacturing cost basically means the cost that is required to manufacture t...
Q: The Howard Sports Company is considering a new production line. The expected economic life of the pr...
A: Brek Even sales is when the present value of cash inflow is equal to the present value of cash outfl...
Q: $4,775.68
A: The after tax income of an individual is calculated by deducting the paid taxes from the income for ...
Q: Console Company reported capital at P1,700,000 on January 1, 2016 and P2,400,000 on December 31,2016...
A: For computing Net income we should use merchandise withdrawn having carrying value of P100, 000 and ...
Q: Question Content Area A company has traditionally allocated its overhead based on machine hours but ...
A: The costing technique in which cost allocation is made on the basis of activities performed in makin...
Q: Review of internal control system is very important for the auditor as the effectives of internal co...
A: Ans. Internal control policies are implemented and executed by management. An Auditor is required to...
Q: Joint ventures are a common way of doing business nowadays. Explain what a joint venture is, and sta...
A: A joint venture is a short-term business venture in which two or more people work together and share...
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of t...
A: Solution Concept When the income is not recorded the effect is understatement of the revenue and it ...
Q: On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and outst...
A: As on 31.12.2021 Common Stock 1290000 share of $6 per Share $ 77,40,000 1290000 shar...
Q: The following facts apply to the pension plan of Wildhorse Inc. for the year 2020. Plan assets, Ja...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: Which of the following functions is not included in the typical expenditure cycle involving goods? ...
A: Expenditure cycle refers to specific period related to acquisition of and payment of goods and servi...
Step by step
Solved in 2 steps
- Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
- Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is 9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per subassembly. 3. Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. What happens to product cost if the time to produce a unit is decreased to 25 minutes? How can a firm encourage managers to reduce cycle time? Finally, discuss how this approach to assigning conversion cost can improve delivery time. 4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. How much non-value-added time is being used? How much is it costing per unit? 5. Cycle time, velocity, MCE, conversion cost per unit (theoretical conversion rate actual conversion time), and non-value-added costs are all measures of performance for the cell process. Discuss the incentives provided by these measures.