Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January February March April $7,000 8,140 9,899 9,787 360 550 630 610
Q: Equity Method and Eliminating Entries, Second Year On January 1, 2023, Playtel Inc. acquired all of…
A: Answer:- Equity method of accounting:- The equity method is an accounting method used to account for…
Q: Exercise 4-18 (Algo) Preparing a multiple-step income statement LO P4 Fit-for-Life Foods reports the…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the…
A: Sales$1,353,000Selling price per pairs of skies $410Number of pairs of skies sold ($1,353,000 /…
Q: The following information was taken from Sigmund Company's balance sheet: Fixed assets (net)…
A: Ratio of fixed asset to long term liabilities is computed by dividing the fixed asset by long term…
Q: Joint Cost Allocation—Physical Units Method Woodfall, Inc., produces the following types of 2 × 4 ×…
A: The objective of this question is to allocate the joint production cost to each product using the…
Q: On January 1, 2020, Blindo Corp. issued ten-year, 12% bonds with a face value of $ 500,000, with…
A: Bonds are the securities issued by a company in order to raise funds from investors. It includes…
Q: Accounts Receivable are $400,000 and estimated uncollectible a
A: The allowance account is a contra-asset account used when the aging of receivables, the income…
Q: Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: Journal entries is an art of recording classifying and summarising the business transaction into…
Q: 2. Distinguish between direct and indirect costs.
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Two items are omitted from each of the following three lists of cost of goods manufactured statement…
A: Work in process inventory represents the units, upon which manufacturing processes are applied and…
Q: Record the wages earned but not yet paid, $670. Prepare the adjusting entry needed at December 31.
A: The adjusting entry which is required to be made for the recording of any transaction which has not…
Q: Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct…
A: Standard costing is a practical method of costing that is employed. In accordance with this, all…
Q: At the beginning of his current tax year, David invests $12,400 in original issue U.S. Treasury…
A: Investors may readily purchase and sell U.S. Treasury bonds since they are actively traded on…
Q: On January 1, 2023, Fisher Corporation purchased 40 percent (70,000 shares) of the common stock of…
A: DateAccountDrCr2023-01-01investment in Bowden$974,000Cash$974,000On January 1, 2023, Fisher…
Q: When Patey Pontoons issued 6% bonds on January 1, 2024, with a face amount of $680,000, the market…
A: Bond helps companies to raise funds for meeting business requirements. The bond can be issued at…
Q: EX.17-179.ALGO The following information was from Slater Company's balance sheet: Fixed assets (net)…
A: Ratio of fixed assets to long-term liabilities = Fixed assets/Long term liabilitiesRatio of…
Q: Bonita Department Store uses a perpetual inventory system. Data for product E2-D2 include the for…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: Stellar Corporation issued 4,500, five year, 4% bonds at 104 on January 1, 2023. Interest is paid…
A: Financial analysts and decision-makers can evaluate the effect of bond-related activities on the…
Q: Assume you are the manager of this area in a small firm. What internal controls and segregation of…
A: complete solution given belowExplanation:As a manager, it's crucial to implement internal controls…
Q: Adams Enterprises produces a product with fixed costs of $49,900 and variable cost of $2.70 per…
A: Contribution margin is the difference between the sales and the variable cost, or in other words it…
Q: DAWG Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods…
A: The Cost of Particulars Manufactured( COGM) is a fiscal standard that displays the total product…
Q: K. Canopy, the proprietor of Canopy Services, withdrew $6,100 from the business during the current…
A: Closing entries are required to close the temporary accounts after making financial statements…
Q: At the beginning of the year, a firm has current assets of $320 and current liabilities of $224. At…
A: Current Assets = Total assets - Fixed assetsNet working capital = Current Assets - Current…
Q: Opus Limited is a CCPC. In 2023, the company received the following dividends: $ 35,000 55,000…
A: A dividend is a portion of a company's profits and retained earnings that it pays to its…
Q: On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an…
A: leases - It is contract between lessor and lessee wherein an asset is given to lessee in…
Q: Lord Company purchased a machine on January 2, Year 1, for $70,000. The machine had an expected…
A: Depreciation -Depreciation is the reduction in a tangible asset's price that occurs when the asset…
Q: Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2024. The payroll expense…
A: Payroll taxes refer to those taxes paid by both employer and employee in order to fund the employee…
Q: A company reports the following: Sales Average total assets (excluding long-term investments)…
A: Asset turnover ratio measures the dollar value of sales revenue that a company is able to generate…
Q: The Montgomery Company produces bicycle helmets. During the most recent period, a materials…
A: The objective of the question is to identify the correct journal entry to record the transfer of…
Q: Nagle Incorporated uses a job - order costing system and its total manufacturing overhead applied…
A: The work in process includes the cost of goods that are not finished yet. The cost of goods sold…
Q: With ABC, overhead costs are assigned to each product based on ________. Group of answer choices…
A: The overhead rate is calculated as the estimated overhead costs divided by the estimated base…
Q: Current Attempt in Progress For the year ended December 31, 2023, Blue Ltd. reported income before…
A: Taxable income is the income earned on which the taxes are levied. This income includes all the…
Q: Right before his death from a terminal illness, Shing makes a gift of $705,000 cash to his churcha…
A: Shing's marginal Federal income tax rate is 35%.The gift amount is $705,000.The tax savings from the…
Q: Nabo Corporation reports the following balances: As of 12/31/23 40,000 80,000 60,000 20,000 Accounts…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: What amount will be charged to profit or loss for the year ended 31 March 2023 in respect of…
A: Depreciation means gradual and permanent diminishing of the value of assets due to water, tear and…
Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…
A: The payments and bonuses that employees get in addition to their normal income or salaries are…
Q: . A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials"…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: On January 1, 2022, Oriole Corporation acquired equipment at a cost of $759000. Oriole adopted the…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Job OL1105 was recently completed. The following data have been recorded on its job cost sheet:…
A: A job cost sheet is a list of a job's real costs. The management team receives the report that the…
Q: Compute the amounts in this table for each employee. For the company, compute each total for FICA…
A: · FICA – This is a US federal tax. It means Federal Insurance Contributions Act. This is…
Q: Consider the following: 1,000 dwellings valued at $100,000 each. Each owner faces risk of a $100,…
A: To calculate the premium to be paid by each owner, we need to consider the total amount of losses…
Q: Equivalent Units of Conversion Costs The Rolling Department of Blackrock Steel Company had 800 tons…
A: The equivalent cost can be calculated by dividing the total cost with equivalent units. Production…
Q: Federated Fabrications leased a tooling machine on January 1, 2024, for a three-year period ending…
A: leases. - It is a contract between a lessor and a lessee wherein an asset is given to the lessee in…
Q: Extended Analysis ey comparative figures for Samsung, Apple, and Google follow. Net sales Cost of…
A: The gross margin ratio is a tool used by analysts and investors to evaluate the performance and…
Q: Africa on the 30th July 2021 Due to the technical and complex nature of the new machines, further…
A: Journal entry refers to the procedure of recording the business transactions in financial books. It…
Q: Transactions for fixed assets, including sale depreciation is used. Year 1 January 8. Purchased a…
A: The objective of the question is to journalize the transactions and adjusting entries related to the…
Q: Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending…
A: Understanding the cost-to-retail percentage is vital for businesses in the retail sector and beyond.…
Q: Given the following financial information, for the past year. Accounts payable Accrued interest Cash…
A: The balance sheet and income statement are two of the three major financial statements that…
Q: ssets intended to be held and used for ircumstances except luctive purposes may suffer from…
A: Impaiment of Asset seeks to ensure that an entity's assets are not carried at more than their…
Q: Refer to the balance sheet information below for Home Depot. Jan. 28, 2018 Feb. 3, 2019 $14,357…
A: The net operating assets turnoverThe net operating assets turnover refers to the financial measures…
![V/T
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Month
Labor Cost Employee Hours
January
February
March
$7,000
8,140
9,899
9,787
8,490
7,450
tot
Feedback
360
550
April
May
June
July
9,490
August
7,531
310
Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in th
restaurant.
►Check My Work
630
610
480
350
In your calculations, round the variable rate per employee hour to the nearest cent.
Required:
1. Using the high-low method, calculate the fixed cost of labor.
570
2. Using the high-low method, calculate the variable rate.
per employee hour
3. Using the high-low method, construct the cost formula for total labor cost.
Total labor cost = $
+ [$
x Employee hours]
Dreviou
Ma](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60f1b517-5f46-4de2-aaf4-a2d91e2d40d0%2F1299ffd1-52c3-4ff2-975f-8716eb2e29ab%2Fhcqtc1p_processed.png&w=3840&q=75)
Step by step
Solved in 5 steps with 3 images
- Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 3. Using your answers to Requirement 2, write the cost formula for tanning services. 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues that Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon.
- Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,790 300 February 7,300 350 March 7,831 370 April 8,440 280 May 10,087 320 June 8,790 250 July 10,932 410 August 7,800 230 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. $fill in the blank 1 per employee hour 2. Using the high-low method, calculate the fixed cost of labor. $fill in the blank 2 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $fill…Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost($) Employee Hours January 9,490 550 February 7,000 630 March 7,531 670 April 8,140 500 May 9,787 590 June 8,490 460 July 12,872 760 August 7,500 420 Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant. In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the fixed cost of labor.$________ 2. Using the high-low method, calculate the variable rate.$_________ 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ _______ + ($__________ × Employee hours)Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Month Labor Cost Employee Hours January $7,000 360 February 8,140 550 March 9,899 630 April 9,787 600 May 8,490 480 June 7,450 350 July 9,490 570 August 7,531 310 Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4,497 X Variable 8.26 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor.$fill in the blank 1 Calculate the variable rate per employee hour.$fill in the blank 2per employee hour 2. Construct the cost formula for total labor cost.Total labor cost = $fill in the blank 3 + ($fill in the blank 4 × Employee hours) 3. Calculate the budgeted…
- Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,002 15,174 April 2,664 9,624 May 2,823 12,276 June 3,621 17,777 a.$1.17 b.$0.70 c.$0.66 d.$0.12Prepare a contribution margin format income statement; calculate breakeven point Presented here is the income statement for Big Surf, Inc., for the monthof May:Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,000Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,500Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,500Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,500)Based on an analysis of cost behavior patterns, it has been determined that the company’s contribution margin ratio is 30%.Required:a. Rearrange the preceding income statement to the contribution margin format.b. If…Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $14.01 Variable cost per cake Ingredients 2.21 Direct labor 1.11 Overhead (box, etc.) 0.30 Fixed cost per month $4,156.00 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $515 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.60 per cake. 2. Assume that Cove sold 430 cakes last month. Calculate the company’s degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 15 percent increase in sales revenue.
- BREAK EVEN SALES IN DOLLARS AND CONTRIBUTION MARGIN RATIO Please provide how to find the Break Even sales in Dollars and how to find the Contribution Margion Ratio on the information below. Price per cake $14.71 Variable Costs per cake Ingredients $2.25 Direct Labor 1.02 Overhead (box, etc) .25 Fixed cost per month $4,476Given the following cost and activity observations for Bounty Company’s utilities, use the high-low method to determine Bounty’s variable utilities cost per machine hour. Round to the nearest cent. Cost Machine Hours March $3,139 14,709 April 2,650 9,989 May 2,817 12,342 June 3,656 17,720 a. $0.74 b. $0.13 c. $1.43 d. $0.78Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.11 Variable cost per cake Ingredients 2.30 Direct labor 1.17 Overhead (box, etc.) 0.16 Fixed cost per month $ 3,602.40 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $475 per month. c. Variable costs decrease by $0.37 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 405 cakes last month. Calculate the company’s degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 11 percent increase in sales revenue. rev: 10_04_2019_QC_CS-184582 Next Visit question map Question4of7Total4 of 7 Prev
