-irect materials -irect labor ariable manufacturing overhead ixed manufacturing overhead $9.50 $8.50 $ 3.45 $ 4.40 outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporatio tors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct lab kring the motore rather tha ther from the ou uld be:
Q: udent question Time to preview question: 00:09:37 Hauswirth Corporation sold (or exchanged) a…
A: This question is related to accounting, which involves the recording, summarizing, and reporting of…
Q: Bluebird, Inc. had net sales (all on account) in 2020 of$600,000. At December 31,2020 , before…
A: The allowance for doubtful accounts has credit balance. It is deducted from the gross account…
Q: A deposit of $20,000 is placed in his scholarship fond that earns an annual interest rate of four.…
A: Time value of money is a financial concept which is used to calculate the value of money in present…
Q: Madrigal Company constructed a building for its own use. Construction started on January 3, 2021…
A: According to PFRS, All the Borrowing costs that are directly attributable to the acquisition, or…
Q: Assume that a company's budgeted revenue per unit is $50. The company's planned level of activity…
A: Revenue variance is difference between the actual revenue and the flexible revenue. If the actual…
Q: Identify the types of financial statements issued annually by federal agencies. Compare and contrast…
A: Financial statements are reports that provide information about an entity's financial performance,…
Q: [The following information applies to the questions displayed below.] Clopack Company manufactures…
A: The direct costs are at first debited to work in process. As the work is completed for the units,…
Q: Base Ltd was incorporated on 1 January 20x0 with share capital of $50,000, comprising 50,000…
A: Lets understand the basics. The diluted earning per share is a measurement used for the determining…
Q: 1. The contribution of $3,700,000 was received and recorded on December 31, 2022. 2. On December 31,…
A: A nonprofit organisation or educational institution would often create an endowment fund as a…
Q: To assist
A: 1. To assist in approaching the bank about the loan, paul has asked you to compute the following…
Q: The following events apply to Gulf Seafood for the Year 1 fiscal year: The company started when it…
A: Depreciation means allocation of cost of asset over it's useful life. Under straight line method,…
Q: (c) For the year ended 31 December 2011, the Board of Directors records a surplus of $157 500.…
A: C). Classified Balance Sheet for Liontown Co-operative for the year ended 31 December 2011:…
Q: Calculate the Corporation Tax Liability of Full Tax Co. for Y/A: 2022. Using the Barbados Income Tax…
A: A. Calculation of Corporation Tax Liability for Y/A 2022: Accounting Profit after tax = $5,500,000…
Q: Please answer the following 2 questions: 10. A decrease in Accounts Payable should be added to the…
A: Answer: Net Income $165,000 Adjustments for non-cash items: Gain on sale of land ($20,000) Changes…
Q: Clopack Company manufactures one product that goes through one processing department called Mixing.…
A: The beginning WIP costs and costs incurred during the period comprises to get the costs to be…
Q: The consumer price index of education in January 2017 was 251.126. In January 2018 the CPI for…
A: When the amount is needed to be revised as per new CPI index, then the fraction of new CPI over old…
Q: Sandhill Co. follows ASPE. It manufactures sweatshirts for sale to athletic-wear retailers. The…
A: The ratio analysis helps to analyze the financial statements of the business. The current ratio is…
Q: Consider a bond that has just paid a semi-annual coupon and has exactly 2.5 years to maturity and an…
A: INFORMATION:- This question involves calculating the price of a bond given its remaining time to…
Q: how will the economic situation impact accounting
A: The economic situation can impact accounting in several ways: Changes in Revenue and Expenses: In…
Q: Can you please enter the information clearly without so many spaces? The information is hard to…
A: The ratio of inventory turnover measures how effectively the business uses its inventory through…
Q: Variable expenses for Delta Corporation are 40% of sales. What are sales at the break-even point,…
A: The break-even point is the point beyond which there are only profits. It is the point where the…
Q: mortgage instruments expected Note: Use tables, Excel, or a fir
A: 1. The First $3,750 Deposit Is Made On December 31,2021, And Interest Is Componded Annually -…
Q: The bonds make semiannual payments. ? (Do not round Intermediate calculations. Round the final…
A: Answer : Future value (FV)= $1000 Coupon rate = 8.8%/2= 4.4% Coupon payment (PMT) = $1,000*4.4% =…
Q: Assignment 1: Individual research/essay You are a newly hired fraud examiner. You have been asked…
A: This report is related to accounts and fraud prevention in the context of a paving company's…
Q: 16 Hurawalhi Company uses machine-hours (MHS) to allocate their manufacturing overhead (MOH) cost…
A: Calculation of Estimated MHs For planned production last year are as follows.
Q: Calvin Corporation's office was burglarized. The thieves stole 10 laptop computers and other…
A: INTRODUCTION: An asset is a financial resource that a person, company, or nation possesses or…
Q: 2. Prepare a quotation for a job which is to produce 2,000 copies of a town guide, from the…
A: This question is related to accounting as it involves calculating the costs associated with…
Q: Valley's managers have made the following additional assumptions and estimates: Estimated sales for…
A: Accounts Receivable Turnover :— It is calculated by dividing credit sales by average accounts…
Q: On January 1, 2020, Pharoah Corporation had 96,000 shares of no-par common stock issued. 5,000…
A: Cash Account is to be debited at the time of issue of Common stock
Q: questions displayed below] On January 1, 2021, Gundy Enterprises purchases an office building for…
A: Mortgage payable is the amount which is owed for loan on credit. It is generally paid back in equal…
Q: Isabel Company has an equipment costing P700,000 with an estimated residual value of P70,000 and an…
A: The depreciation expense is charged on fixed assets as the reduction in the value of the fixed…
Q: Compute company profit with products C&D and with products C & E. Net profit with products C & D Net…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: Record the above transactions in a horizontal statements model.
A: Answer 1: Note: Depreciation expense is calculated as follows: Depreciation expense = (Cooktop cost…
Q: Required information [The following information applies to the questions displayed below] In the…
A: An income statement is a financial statement that shows you the company's income and expenditures.
Q: To
A: 1. To assist in approaching the bank about the loan, paul has asked you to compute the following…
Q: Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains.…
A: The standard revenue requires the entity reporting to estimate the variable consideration amount,…
Q: nstructions: Calculate the cost of goods sold under FIFO, LIFO, and weighted average cost. May 5th…
A: Lets understand the basics. There are various method through which cost of goods sold and inventory…
Q: Firm R owned depreciable real property subject to a $300,000 nonrecourse mortgage. The property’s…
A: Calculation of R's firm cash flow consequences are as follows
Q: A group of thirty 2-year old piggy was held by Ralph Ranch at January 1, 2022. Five one- year old…
A: This question belongs to accounting, specifically the accounting for biological assets. Biological…
Q: Company L sold an inventory item to Firm M for $40,000. Company L’s marginal tax rate is 21 percent.…
A: DISCLAIMER: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: An organizations stock records show the following transactions for a specific item during last…
A: Weighted 'Average Costs Method Companies determine the average cost of the things they have in stock…
Q: Trading Securities: Security A Security B Totals Securities Available-for-Sale: Security C Security…
A: Will calculate Ammortised cost with the help of giveb fair value and final balance For example…
Q: A machine costing P120,000, with accumulated depreciation of P95,000, and a fair market value of…
A: Commercial substance refers to the economic reality of a transaction, which considers the underlying…
Q: Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several…
A: Annuity received by Widow is taxable while calculating Total Income for Income tax purpose.
Q: Razor Technologies reported $167,000 of income for the year by using variable costing. The company…
A: The income statement can be prepared using different approaches as variable costing and absorption…
Q: On January 1, 2024, Middling Company borrows $35,000 by agreeing to a 9%, 4-year note with the bank.…
A: INTRODUCTION: A note payable is a promissory note in writing. A borrower borrows a particular…
Q: The income statement for the Riverbed Golf Club Inc. for the month ended July 31 shows Service…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: [The following information applies to the questions displayed below] A company reports the following…
A: Introduction:- Weighted average method is one of the inventory valuation method. which is used to…
Q: What is the compound amount when the second CD matures? (Assume all years have 365 days. Round your…
A: Under Compound Interest Method, interest is calculated on the beginning accumulated amount, which…
Q: On Dec. 31, 2021, Windsor Mold Co. has disclosed some of the company's financial data: Current…
A: INTRODUCTION: The current ratio is also known as the working capital ratio. This ratio compares a…
Step by step
Solved in 3 steps
- Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Rolertyme Company manufactures roller skates. With the exception of the rollers, all parts of the skates are produced internally. Neeta Booth, president of Rolertyme, has decided to make the rollers instead of buying them from external suppliers. The company needs 100,000 sets per year (currently it pays 1.90 per set of rollers). The rollers can be produced using an available area within the plant. However, equipment for production of the rollers would need to be leased (30,000 per year lease payment). Additionally, it would cost 0.50 per machine hour for power, oil, and other operating expenses. The equipment will provide 60,000 machine hours per year. Direct material costs will average 0.75 per set, and direct labor will average 0.25 per set. Since only one type of roller would be produced, no additional demands would be made on the setup activity. Other overhead activities (besides machining and setups), however, would be affected. The companys cost management system provides the following information about the current status of the overhead activities that would be affected. (The supply and demand figures do not include the effect of roller production on these activities.) The lumpy quantity indicates how much capacity must be purchased should any expansion of activity supply be needed. The purchase price is the cost of acquiring the capacity represented by the lumpy quantity. This price also represents the cost of current spending on existing activity supply (for each block of activity). Production of rollers would place the following demands on the overhead activities: Producing the rollers also means that the purchase of outside rollers will cease. Thus, purchase orders associated with the outside acquisition of rollers will drop by 5,000. Similarly, the moves for the handling of incoming orders will decrease by 200. The company has not inspected the rollers purchased from outside suppliers. Required: 1. Classify all resources associated with the production of rollers as flexible resources and committed resources. Label each committed resource as a short- or long-term commitment. How should we describe the cost behavior of these short- and long-term resource commitments? Explain. 2. Calculate the total annual resource spending (for all activities except for setups) that the company will incur after production of the rollers begins. Break this cost into fixed and variable activity costs. In calculating these figures, assume that the company will spend no more than necessary. What is the effect on resource spending caused by production of the rollers? 3. Refer to Requirement 2. For each activity, break down the cost of activity supplied into the cost of activity output and the cost of unused activity.Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?
- Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. Otero has been in business since 1985 and has been profitable every year since 1993. The company uses a standard cost system and applies overhead on the basis of direct labor hours. Otero has recently received a request to bid on the manufacture of 800,000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes. Full cost has been defined as including all variable costs of manufacturing the product, a reasonable amount of fixed overhead, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicated that bids in excess of 30 per blanket are not likely to be considered. In order to prepare the bid for the 800,000 blankets, Andrea Lightner, cost accountant, has gathered the following information about the costs associated with the production of the blankets. Direct machine costs consist of items such as special lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhead rates. Otero recently developed a new blanket fiber at a cost of 750,000. In an effort to recover this cost, Otero has instituted a policy of adding a 0.50 fee to the cost of each blanket using the new fiber. To date, the company has recovered 125,000. Lightner knows that this fee does not fit within the definition of full cost, as it is not a cost of manufacturing the product. Required: 1. Calculate the minimum price per blanket that Otero Fibers could bid without reducing the companys operating income. 2. Using the full-cost criteria and the maximum allowable return specified, calculate Otero Fibers bid price per blanket. 3. Without prejudice to your answer to Requirement 2, assume that the price per blanket that Otero Fibers calculated using the cost-plus criteria specified is greater than the maximum bid of 30 per blanket allowed. Discuss the factors that Otero Fibers should consider before deciding whether or not to submit a bid at the maximum acceptable price of 30 per blanket. (CMA adapted)Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylindcr automobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is 2,000, and the cost required to set up the production line for the 6-cylinder connecting rods is 3,500. Manufacturing costs are 15 for each 4-cylinder connecting rod and 18 for each 6-cylinder connecting rod. There is no production on weekends, so on Friday the line is disassembled and cleaned. On Monday, the line must be set up to run whichever product will be produced that week. Once the line has been set up, the weekly production capacities are 6,000 6-cylinder connecting rods and 8,000 4-cylinder connecting rods. Let x4 = the number of 4-cylinder connecting rods produced next week x6 = the number of 6-cylinder connecting rods produced next week s4 = 1 if the production line is set up to produce the 4-cylinder connecting rods; 0 if otherwise s6 = 1 if the production line is set up to produce the 6-cylinder connecting rods; 0 if otherwise a. Using the decision variables x4 and s4, write a constraint that sets next weeks maximum production of the 4-cylinder connecting rods to either 0 or 8,000 units. b. Using the decision variables x6 and s6, write a constraint that sets next weeks maximum production of the 6-cylinder connecting rods to either 0 or 6,000 units. c. Write a constraint that requires that production be set up for exactly one of the two rods. d. Write the cost function to be minimized.Boston Executive. Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: The company received an offer from Elite Mini-Bars to produce the insets for $2,100 per Unit and supply 1,000 mini-bars for the coming years estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the companys total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini bar production can be used by a different production group that will lease it for $55,000 per year. Should the company make or buy the mini-bar insert?
- Regal Executive, Inc., produces executive motor coaches and currently manufactures the cent awnings that accompany them at these costs: The company received an offer from Saied Tents to produce the awnings for $3,200 per unit and supply 1,000 awnings for the coming years estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the companys total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the awning production can be used by a different production group that will lease it for $60,000 per year. Should the company make or buy the awnings?Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 75Q1+5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 25Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price would be 11.50). The order would require specialized materials costing 4.00 per unit. Direct labor and variable factory overhead would cost 2.15 per unit. Fixed factory overhead is 1.20 per unit. However, the company has excess capacity, and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing 1,300. Which of the following is relevant to the special order? a. 11.50 b. 1.20 c. 7.35 d. 8.90Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?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.