Miracle Car Wash located in Nashville, Tennessee has been providing Interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed Cost Cost per per Month Can Washed Cleaning supplies Electricity Maintenance $0.70 $ 8.08 $0.10 $ 8.20 $1,300 Wages and salaries Depreciation $4,300 $8,300 $2,eee0 $1,400 Rent Administrative expenses $ 8.es For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and coliected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August.

Miracle Car Wash located in Nashville, Tennessee has been providing Interior and exterior car washes since 1960. Provided below is information regarding Miracle's costs: Fixed Cost Cost per per Month Can Washed Cleaning supplies Electricity Maintenance $0.70 $ 8.08 $0.10 $ 8.20 $1,300 Wages and salaries Depreciation $4,300 $8,300 $2,eee0 $1,400 Rent Administrative expenses $ 8.es For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and coliected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August.

Name: %24Miracle Car WashFlexible BudgetFor the Month Ended August 31Revenu
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Description: %24Miracle Car WashFlexible BudgetFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income Miracle Car Wash located in Nashville, T

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Jake’s Roof Repair has provided the following data concerning its costs:Fixed Cost Cost perper Month Repair-HourWages and salaries ..................... $23,200 $16.30Parts and supplies ........................ $8.60Equipment depreciation ................ $1,600 $0.40Truck operating expenses ........... $6,400 $1.70Rent .............................................. $3,480Administrative expenses ............... $4,500 $0.80For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected towork 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales tobe $44.50 per repair-hour.Required:Prepare a report showing the company’s activity variances for May
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Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repair HR IT M1 M2 Repairs - 0% 0%` 40% 60% HR 10% - 20% 35% 35% IT 0% 10% - 20% 70% The direct costs of the service departments in the previous period were $20,000 for Repairs, $39,600 for HR, and $45,000 for IT. Required Use the direct method to allocate the service department costs to the production departments.
he following information is derived from the cost sheet of Al Hood Manufacturing & Trading LLC: Manufacturing overhead                     RO 5,000 Selling & Distribution overhead        RO 2,000 Direct material                                    RO 10,000 Direct expenses                                   RO 4,000 Administration overheads                   RO 1,000 Direct labor                                         RO 3,000 Use the above information and answer 30 MCQs 30. Calculate the amount of conversion cost that is incurred for Al Hood Manufacturing & Trading LLC. a.RO 25,000 b.RO 23,000 c.RO 22,000 d.RO 8,000
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