Determine your budget variance and what type it is. Provide a short explanation that can be given to administration regarding the variance.
Q: Question. The following is an extract from the financial statements of Buy-all (Pty) Ltd for the…
A: INTRODUCTION: The inventory turnover ratio evaluates how quickly a corporation replaces a current…
Q: Required information [The following information applies to the questions displayed below.] On…
A: The present value represents the current worth of the money to be received in the future. The future…
Q: Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It…
A: ANSWER:- JOURNAL ENTRIES DATE…
Q: Cesar's Bottlers bottles soft drinks in a factory that can operate one shift, two shifts, or three…
A: Your company has reached its break-even point when its entire expenses and total revenues are equal.…
Q: Walbin Corporation uses the weighted-average method in its process costing system. The beginning…
A: The cost of the materials needed to make an item or perform a service is referred to as the…
Q: ou receive $2,000 six years from today. Assuming a 3% effective annual interest rate over the six…
A: The worth of the money changes with time. The time value of money says that the worth of money…
Q: n 2007, Xero Ltd. offered a subscription of 15 million shares at an offer price of $1.00 per share…
A: Issuance of Shares Stock that have been issued—which may be fewer than the total number of…
Q: The Assembly Department produced 4,000 units of product during March. Each unit required 1.75…
A: Standard direct labor hours are the expected number of labor hours which should be used to achieve…
Q: Suppose a firm has had the following historic sales figures. Year: 2009 2010 2011 2012 2013 Sales…
A: Budgeting sales using average approach means to determine the amount of average from all the sales…
Q: M4 Engineering has two divisions, the Fabrication Division and the Airplane Division. The Airplane…
A: Ethical Behavior According to ethical standards, accountants must abide by the rules and laws that…
Q: e country of Laland, aid organisations registered as charities are not subject to the same financial…
A: Audit Committee One of the main operating committees of a board of directors is the audit…
Q: Jinjie owns two parcels of business land (§ 1231 assets). One parcel can be sold at a loss of…
A: INTRODUCTION: Income tax is the tax that a person is required to pay on their earnings for the year.…
Q: Bart Berman is an accrual basis taxpayer who provides marketing consulting services. His biggest…
A: The accrual basis of accounting seems to be the practice of recording revenues as they are earned…
Q: The Can Division of Sheffield Corp. manufactures and sells recyclable containers externally for…
A: Transfer price is synonymous with transfer cost. It refers to the price at which related parties…
Q: Assume that no reversing entries are made by the entity. How would the entity record the transaction…
A: Solution: Accrued salaries and wages are recorded through Salaries payable. In next period, when…
Q: You have a choice of investing in a financial instrument that either compounds interest on an annual…
A: The compounded interest and simple interest result in different interest earnings. Simple interest…
Q: Determine minimum transfer price with no excess capacity. P9.59B (LO 6) Chula Vista Pump Company…
A:
Q: Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for…
A: Introduction:- Ratio analysis used identify the business performance of the company. It is used to…
Q: Corporation received a charter that authorized the issuance of 85,000 shares of $6 par common stock…
A: Balance Sheet is one of the most important financial statement of a company . This statements is…
Q: Kaplan, Inc. produces flash drives for computers, which it sells for $20 each. The variable cost to…
A: Breakeven level of sales is the level of sales where net income/ net profit will be nil. It can be…
Q: Required informatic [The following inform The following inform Department Service 1 (S1) Service 2…
A: Solution: Under direct method of service department cost allocation, cost of service department is…
Q: Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit…
A: Depreciation is the reduction in the value of fixed asset over its useful life. It is deducted in…
Q: Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested…
A: Requirement:-a Calculation of Total cost per unit as follows:- Total cost per unit =All variable…
Q: ABC Company borrowed $100,000 at a 6% interest rate on May 1, 20X1 for one year with interest and…
A: Accrued interest expense: At year-end when the company finalizes its accounts then any unrecognized…
Q: Cullumber Manufacturing Company had a $300 credit balance in Allowance for Doubtful Accounts at…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: Below were selected transactions of FDNACCT Services during the month of September: • Received…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: Instructions a. Assume that FrameBody has excess capacity and is able to meet all of the cycle…
A: Transfer pricing is the practice under which a price is determined and the goods and services are…
Q: NO 1 STATEMENT If the customer is to pay the shipping charges, the copy of the bill of indicate…
A: Goods - Goods are the items that businesses purchase and exchange. Goods might be unfinished…
Q: You are offered two credit cards. The first is a credit card (CARD A) that has an APR of 24.99%. You…
A: It has been provided: APR of card A = 24.99% APR of card B = 21.99% Annual charge = $100 Required:…
Q: On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation.…
A: Estimated inventory is the amount of goods which are not sold and still held with the entity and…
Q: Stamos Enterprises purchased land, building, and equipment for $2,400,000. The land has been…
A: INTRODUCTION: The equipment is considered a permanent asset of the company organization and is used…
Q: Beginning inventory, purchases, and sales for an inventory item are as follows: Sep. 1 Beginning…
A: LIFO means last in first out. It is one of the methods of inventory valuation wherein the inventory…
Q: Sorrento Interior Furnishings Pty Ltd has adopted the Allowance for Doubtful Debts Method. The…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Forten Company's current year income statement, comparative balance sheets, and additional…
A: Cash flow Statement - Indirect Method Information that demonstrates how much money an organization…
Q: hekov Company has two support departments, Human Resources and General Factory, and two producing…
A: Solution:- 1)Calculation of the allocation ratios for the four departments using the direct method…
Q: The following information is departmental cost allocation with two service departments and two…
A: Cost Allocation helps to determine if a specific department is profitable or not. It is a process…
Q: Sam invests $100 each month into his retirement account. He wants to determine how much will…
A: This is a case of an annuity. The monthly deposits of $100 each month is an annuity and we have to…
Q: During the current year, Polly Company purchased a second hand machine at a price of P5,000,000. A…
A: A capitalized cost is an expense that increases the cost base of a fixed asset on a company's…
Q: Elizabeth Pie Company has been in business for 50 years and has developed a large group of loyal…
A: Calculation of the goodwill:- The amount of goodwill that Giant Bakery should record on the date of…
Q: Quality Chemicals produces a solvent in its Daley plant. Three chemicals are combined at the start…
A: A process costing system is a method of determining the cost of the product in each process where…
Q: The following iniormation applies fo the questions dispiayed below] On January 1, 2024, Splash City…
A: Amortization schedule is the one which is prepared to show the periodic payments of the bonds or…
Q: ADD a single-line rule above the totals and a double-line rule below the totals to indicate that the…
A: All the transactions have been recorded according to the example shown in the image. Cash balance…
Q: Assume that Ocean King Products sells three varieties of canned seafood with the following prices…
A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…
Q: TB Problem 7-170 (Algo) Cordova, Incorporated, reported the following... Cordova, Incorporated,…
A: Bad Debts Expense - Bad Debt Expense are the expense charged to income statement. It is the amount…
Q: Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit…
A: Under straight line method, depreciation is calculated using the expected useful life. Under unit…
Q: A company believes that its demand for the next six months is as follows:…
A: The production table refers to the collection of data that are related to the business products…
Q: s no beginning inventory. Other information for the year included: Direct manufacturing labor…
A: Under Absorption costing, product cost include direct material, direct labor and variable…
Q: Suppose that Wall-E Corp. currently has the balance sheet shown below, and that sales for the year…
A: A balance sheet is a financial statement that reports a company's assets, liabilities, and…
Q: Below were selected transactions of FDNACCT Services during the month of September: • Received…
A: Under the accrual concept of accounting, only the revenues that are accrued are treated as revenues…
Q: n July 1, 2004, the national government granted a parcel of land located in Baliuag, Bulacan to…
A: Accounting for government grants has two approaches, the first is the capital approach and the…
Rio Grande Medical Center is needing to expand their HIM department. In order to move forward with the renovation and gain the needed square footage, all old records in storage will need to be archived. After researching the archival process, it is determined the archiving will be done via microfilm with a budget of $300,000 over a two-year period.
You have contracted with a company to perform the microfilm services at $0.07 per page and have estimated that there are about 4.5 million pages to be converted. At the end of the first year, you review the invoice and see that you have been billed for converting 2,083,333 pages.
Determine your
Provide a short explanation that can be given to administration regarding the variance.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage and trash from residential customers. To facilitate the collection, Basuras places a large plastic container with each household. Because of wear and tear, growth, and other factors, Basuras places about 200,000 new containers each year (about 20% of the total households). Several years ago, Basuras decided to manufacture its own containers as a cost-saving measure. A strategically located plant involved in this type of manufacturing was acquired. To help ensure cost efficiency, a standard cost system was installed in the plant. The following standards have been established for the products variable inputs: During the first week in January, Basuras had the following actual results: The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in January. Also, a new manufacturing process was implemented on a trial basis. The new process required a slightly higher level of skilled labor. The higher- quality material has no effect on labor utilization. However, the new manufacturing process was expected to reduce materials usage by 0.25 pound per container. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Assume that the 0.25 pound per container reduction of materials occurred as expected and that the remaining effects are all attributable to the higher-quality material. Would you recommend that the purchasing agent continue to buy this quality, or should the usual quality be purchased? Assume that the quality of the end product is not affected significantly. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Assuming that the labor variances are attributable to the new manufacturing process, should it be continued or discontinued? In answering, consider the new processs materials reduction effect as well. Explain. 3. CONCEPTUAL CONNECTION Refer to Requirement 2. Suppose that the industrial engineer argued that the new process should not be evaluated after only one week. His reasoning was that it would take at least a week for the workers to become efficient with the new approach. Suppose that the production is the same the second week and that the actual labor hours were 9,000 and the labor cost was 99,000. Should the new process be adopted? Assume the variances are attributable to the new process. Assuming production of 6,000 units per week, what would be the projected annual savings? (Include the materials reduction effect.)Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and the other in Bernalillo, New Mexico. The owner of Biotechtron centralized the legal services function in the Yuma office and had both laboratories send any legal questions or issues to the Yuma office. The legal services support center has budgeted fixed costs of 160,000 per year and a budgeted variable rate of 65 per hour of professional time. The normal usage of the legal services center is 2,600 hours per year for the Yuma office and 1,400 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year. Required: 1. Determine the amount of legal services support center costs that should be assigned to each office. 2. Since the offices produce services, not tangible products, what purpose is served by allocating the budgeted costs? 3. Now, assume that during the year, the legal services center incurred actual fixed costs of 163,000 and actual variable costs of 272,400. It delivered 4,180 hours of professional time2,580 hours to Yuma and 1,600 hours to Bernalillo. Determine the amount of the legal services centers costs that should be allocated to each office. Explain the purposes of this allocation. 4. Did the costs allocated differ from the costs incurred by the legal services center? If so, why?A grocery distribution center is considering whether to invest in RFID or bar code technology to track its inventory within the warehouse and truck loading operations. The useful life of the RFID and bar code devices is projected to be 5 years with minimal or zero salvage value. The bar code investment cost is $105,000 and can be expected to save at least $33,000 in product theft and lost items annually. The RFID system is estimated to cost $230,000 and will save $30,000 the first year, with an increase of $15,000 annually after the first year. For a 6% MARR, should the manager invest in the RFID system or the bar code system? Analyze incrementally using rate of return.
- Alva Community Hospital has five laboratory technicians who are responsible for doing a seriesof standard blood tests. Each technician is paid a salary of $30,000. The lab facility representsa recent addition to the hospital and cost $300,000. It is expected to last 20 years. Equipmentused for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries,facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and othersupplies. This $200,000 is enough for 200,000 blood tests.Required:Assuming that the driver (measure of output) for each type of cost is the number of blood testsrun, classify the costs by completing the following table. Put an X in the appropriate box forvariable cost, discretionary fixed cost, or committed fixed cost.AMT, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineer. The capital investment requirement is P345,000 and the estimated market value of the system after a six-year study period is P115,000. Annual revenues attributable to the new camera system will be P120,000, whereas additional annual expenses will be P7,000. The corporation's MARR is 20% per year. Show whether this is a desirable investment by using the ERR method.AMT, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineer. The capital investment requirement is P345,000 and the estimated market value of the system after a six-year study period is P115,000. Annual revenues attributable to the new camera system will be P120,000, whereas additional annual expenses will be P20,000. The corporation's MARR is 20% per year. Show whether this is a desirable investment by using the NPW method.
- AMT, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineer. The capital investment requirement is P345,000 and the estimated market value of the system after a six-year study period is P115,000. Annual revenues attributable to the new camera system will be P120,000, whereas additional annual expenses will be P7,000. The corporation's MARR is 20% per year. Show whether this is a desirable investment by using the annual worth method.AMT, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineer. The capital investment requirement is P345,000 and the estimated market value of the system after a six-year study period is P115,000. Annual revenues attributable to the new camera system will be P120,000, whereas additional annual expenses will be P7,000. The corporation's MARR is 20% per year. Show whether this is a desirable investment by using the present worth method.AMT, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineer. The capital investment requirement is P345,000 and the estimated market value of the system after a six-year study period is P115,000. Annual revenues attributable to the new camera system will be P120,000, whereas additional annual expenses will be P20,000. The corporation's MARR is 20% per year. Show whether this is a desirable investment by using the Annual Worth Method (use capital recovery formula).
- An IE works in the automation department of a surgical equipment manufacturing company that produces specially ordered equipment for hospitals. To upgrade the quality of the assembly process of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 salvage value, a processing cost of $3,000 per camera, and an M&O cost of $65,000. The buy alternative requires contracting the assembly operation externally at a cost of $6,000 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative? cameras must be assembled per year to justify the make alternative.A Corporation manages the back office functions of private medical practices. The company is analyzing a project to digitize the collection of medical records. Last year, the company spent $400,000 during a pilot project to prove that the digitization project was a viable idea, and now the company is evaluating whether to invest in it. Acquiring the necessary computer hardware and software to implement the project will cost $10,000,000. In addition, successful implementation will require the corporation to spend $1,300,000 to install and customize the software, plus $700,000 to purchase hand-held digital devices that medical staff will use to record medical data. Corporation will depreciate the system over 4 years to a net book value of zero. The corp expects an immediate increase in its Accounts Receivable balance of $200,000 as a result of the project. Because the purchases of paper forms and files will decline, the company also expects an immediate decrease in Accounts Payable of…Blossom Co. recently installed some new computer equipment. To prepare for the installation, Blossom had some electrical work done in what was to become the server room, costing $23,600. The invoice price of the server equipment was $200,000. Three printers were also purchased at a cost of $2,200 each. The software for the system was an additional $46,300. The server equipment was believed to have a useful life of eight years, but due to the heavy anticipated usage, the printers were expected to have only a four-year useful life. The software to run the system was estimated to require a complete upgrade in five years to avoid obsolescence. Additionally, delivery costs of $11,500 was incurred for all items above. All of the above costs were subject to a 6% non-refundable provincial sales tax. During the installation, a training course was conducted for the staff that would be using the new equipment, at a cost of $9,650. Assume that Blossom follows IFRS, and that any allocation of…
