Required
Q: Which of the following characteristics would be an indicator that a company would benefit from…
A: Activity based costing is the method of costing in which is used by the company in order to…
Q: Reasons for the need for corporate governance codes
A: Introduction: Good corporate governance guarantees that the board of administrators meets on an…
Q: how long can you withdraw $500.00 at the end of each 10,000 deposited today at 10.5% compounded…
A: The present value of future payments would give the equivalent money considering the time and…
Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of the…
A: Adjusting journal entries are those entries which are made by the company to record the actual…
Q: The following data have been provided by Mathews Corporation: Budgeted production 6,900 units…
A: The variable overhead rate variance is the variance that represents the difference between actual…
Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…
A: Journal Entry :- The purpose of preparing the journal entry to segregate the transaction which are…
Q: Sammy Joe's cash book (bank columns only) for the month of 2021 June was as follows: $ June 01…
A: The question is based on the concept of Financial Accounting.
Q: DELA CRUZ LAW OFFICE POST-CLOSING TRIAL BALANCE JANUARY 1, 2020 DEBIT 588,500.00 75,000.00 2,000.00…
A: Introduction: Balance sheet: All the assets and liabilities are shown in Balance sheet. It tells the…
Q: Explain the reasons for the need of corporate governance code
A: Corporate governance is the bedrock of any successful company. It refers to the procedures, methods,…
Q: ABC Company reported the following accounts in its unadjusted trial balance at December 31, 2027:…
A: Unadjusted trial balance refers to a trial balance prepared before passing the adjusting entries on…
Q: Vertical Analysis Prepabe Chipotle Mexican Grill, Inc. Income Statements For the Years Ended…
A: Vertical analysis of the income statement represents the percentage of a line item with respect to…
Q: The Statement of Financial Position and the Statement of Profit and Loss of ABC Bank include the…
A: Customer accounts is the largest liability for the bank. Customer accounts is the liability where…
Q: O P 6,999.39
A: Compound interest is used in case of lump-sum money accumulates in the future if interest is charged…
Q: Required: 1. Determine the total variable costs and the total fixed costs for the current year.…
A:
Q: Company cell phone bill received, but not paid, $80 what will be the general entry?
A: Introduction: A journal entry is a document of the business arrangement in a company's accounting…
Q: Following are the given figures: Opening Stock Rs. 30,000, Carriage On Sales Rs. 3,000; Closing…
A: Formula used: Gross profit = Opening stock + Net purchases - closing stock
Q: For each of the following items, write first the journal entry and then, the adjusting entry if any,…
A: Theory introduction: All the business transactions are shown in Journal books. Journals also called…
Q: Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Thatcher Inc. had the following transactions: March 1: Purchased cars on account from Blitz Inc. for…
A: Using periodic inventory system, the cost of goods sold is calculated at year end.
Q: The following standard costs per unit, of one product, have been taken from the records of Bahrain…
A: The variance is the difference between actual production dat and standard production data. SP-…
Q: At 1 January 2020, Falmer Co had 15 million £1 equity shares in issue. On 1 April 2020, Falmer Co…
A: Number Amount 01-Jan-20 15 million 15 million 01-Apr-20 2.5 million 2.5 million 17.5…
Q: CHECK OUT: 1. At December 31, 2013, XYZ Co. reported the following information on its balance sheet:…
A: 1. Journal entries
Q: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of…
A: Note: In the special order question, firstly the relevant cost for the special order is calculated.…
Q: Other comprehensive income includes all of the following, except: unrealized gains on available for…
A: Lets understand the basics. Other comprehensive income includes income which does not need to…
Q: Total actual direct materials cost $487,000 . Determine the predetermined overhead rate. 2&3. Enter…
A: The overhead is said to underapplied when actual overhead cost is more than the applied overhead…
Q: Alternative R has a first cost of $94,000, annual M&O costs of $66,000, and a $20,000 salvage value…
A: Introduction:- An alternative cost is a probable benefit that could have been acquired but wasn’t…
Q: Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by Issuing…
A: Consolidation refers to when one company acquires another company for consideration then their books…
Q: QualCore Company began operations on January 1, Year 1, and uses IFRS to prepare its financial…
A: Introduction: IFRS: The International Financial Reporting Rules (IFRS) are a collection of…
Q: 49. The taxable income is a. P9,200,000 c. P8,200,000 b. P7,500,000 d. P7,430,000
A: Calculation of Taxable Income: Gross Income, Philippines = P10,000,000 Less: Allowable Itemized…
Q: Which of the following statements about ABC is not correct? answer choices When forming activity…
A: Answer:- Activity-based costing (ABC)= Activity-based costing (ABC) is a kind of method of costing…
Q: .On Jan 2, 20X1, ABC Company acquired 3,000 12% 3-year P1,000 bonds of Z Corp. at P2,860,702.…
A: Solution: Purchase price of bond = P2,860,702 Stated interest rate = 12% Effective interest rate =…
Q: Revenue... Expenses: Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in…
A: An income statement showing the income and expenses of a company. It also displays if a corporation…
Q: During the first month of operations, the following transactions occurred for Blossom Inc.: Apr. 1…
A: Salary is the expense of a business. As per the golden rule of accounting, the expense is debited.…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…
A: It refers to a modern accounting method which is used to record business transaction in a debit…
Q: On September 1, a corporation had 100,000 shares of $2 par value common stock, and $1,000,000 of…
A: When an organization increases the number of its stocks to enhance the stock's liquidity is known as…
Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M.…
A: As per the below table, the CV of note on Dec 2010 is P 18,18,182 * Please note that the…
Q: 8. A bond issued with a par value of $200,000 and a carrying amount of $195,500 is retired at 98.5.…
A: The bonds are the financial instruments for the business used to raise the money from the market or…
Q: describe the structure of a bank bill. In your explanation, clearly distinguish the roles of the…
A: Introduction: A bill of exchange is a written document that obligates one party to pay another a…
Q: what you consider as effective board pract
A: We consider Effective Board practices as; A diverse board of directors with diverse members…
Q: Bill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1,…
A: The loan is a liability reported under the head liability on the balance sheet of the company. The…
Q: an acquisition. Linda Wade, Smitty’s treasurer and your boss, has been asked to place a value on a…
A: Merger: A merger is the mix of two organizations into one by either shutting the old entities into…
Q: On November 1, Lee Corporation borrowed 10,000 by signing a six-month 5% bank loan payable. On this…
A: When a loan is borrowed which is a liability, Loan Payable A/c will be credited by the amount of the…
Q: Grow Company declared and distributed a 15% share dividend with fair value of P2,500,000 and par…
A: Share premium on share dividend is recognized at the amount of fair value over the par value of the…
Q: Question 8 Apple Corporation produces a single product. The standard costs for one unit of its…
A: Lets understand the basics. Variable overhead efficiency variance is a variance between the hours…
Q: In preparing its bank reconciliation for the month of February, ABC Company has made available the…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: 9. The August 31 bank statement of Kelvin Inc. showed a balance of P113,000. Deducted in arriving at…
A: Lets understand the basics. Bank reconciliation is prepared by management to tally cash balance as…
Q: In its first month of business, Soles for Souls, Inc., started and completed 5,000 shoes and sold…
A: The cost of goods manufactured is the cost of each product that is manufactured in the manufacturing…
Q: Account Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation Accounts…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Salman, capital Advertising expense Accounts payable Sales commission revenue Land Supplies expense…
A: Introduction: Trial balance: All the final ledger accounts balances are posted in Trial balance to…
Q: Deferred income taxes arise because a. corporations often make errors in their tax estimations. b.…
A: Deferred tax arises because of timing difference, i.e, difference between taxable income and…
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Joyce has determined that if she drives 2,350 miles in a month, her total operating cost is $675. If she drives 3,450 miles in a month, her total operating cost is $939.
Required:
1. Using the high-low method, determine Joyce’s variable and fixed operating cost components.
2. Complete the contribution margin income statement for Joyce’s service assuming she drove 1,500 miles last month. (Assume this falls within the relevant range of operations).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.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?
- Dr. Detail is a mobile car wash. The price for a standard wash is $35 and takes half an hour. Each worker is paid $20/hr, uses $5 of materials and $0.50 per mile to use their own vehicle to travel from job to job. The average job is 5 miles. Ernest Kuhns son got sick in the car, and Ernest Kuhn has asked Dr. Detail to detail his car instead of doing a simple wash and vacuum. A. Determine the differential income if $100 was charged to detail the car. Each car detail will take 2 hours. The materials used by the worker is three times that of a standard car wash. B. If the price is raised to $150, what is the differential income change? C. Keeping the price at $150, if the worker rate per hour would increase to $20/hr how would the differential income change? Prepare an Excel spreadsheet. D. What other issues would you need to consider?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.A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $450 and has per-unit variable costs of $200 associated with its production. The company has fixed expenses of $40,000 per month. In May, the company sold 225 of the Bomber model bikes. A. Calculate the contribution margin per unit for the Bomber. B. Calculate the contribution margin ratio of the Bomber. C. Prepare a contribution margin income statement for the month of May.
- Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Required: 1. Calculate the prime cost per cleaning. 2. Calculate the conversion cost per cleaning. 3. Calculate the total variable cost per cleaning. 4. Calculate the total service cost per cleaning. 5. What if rent on the office that Jean and Tom use to run HHH increased by 1,500? Explain the impact on the following: a. Prime cost per cleaning b. Conversion cost per cleaning c. Total variable cost per cleaning d. Total service cost per cleaning
- Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,270 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,360 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $654 + $0.35 per mile. Required: Determine how many miles Russell needs to drive to break even. Assume Russell drove 1,935 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. Determine how many miles Russell must drive to earn $1,000 in profit. Prepare a contribution margin income statement assuming Russell drove 1,935 miles last month. Use the information provided in Req 4a to calculate Russell’s degree of operating leverage.You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian Memorabilia which are (1) snow globes with boats and (2) snow globes with buildings inside. The company's August 2021 sales and expenses are provided below: Boats Globe Building Globe Sales $20,000 $80,000 Variable Cost $15,000 $40,000 No. Momorabilia sold 200 1000 Sales Mix 20% 80% Monthly Fixed costs are $37,000. Required: a. Compute the contribution margin per unit for each product.The controller for Camden's Bike Shop has gathered the following cost and activity level information: Average total cost per unit $225.00 Production level used to calculate average cost 1,000 Total fixed costs $80,000 If the controller uses the cost equation to predict total costs, what total cost would the controller calculate for 2,500 racing bicycles? Is there a difference between the forecasted total cost using average cost versus the cost equation? If there is a difference, what creates the difference? If there is no difference, when would there be a difference?
