xercise 13-6 (Algo) Managing a C
Q: Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett,…
A: The answer is stated below:
Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…
A: The departmental overhead method does not assign overhead on the basis of volume related measures.…
Q: The following data were provided by the accountants of the Home Office and Branch for the year ended…
A: Disclaimer: We are solving 3 sub-parts, if you want to resolve it further, please resubmit it with…
Q: Show a five-year financial projection. Financial projection should reflect the impact of the…
A: Answer:- Financial projection meaning:- A financial projection depicts a company's predicted…
Q: Merryweather Corporation reported net income of $150,000, income before taxes of $240,000 and…
A: Times interest earned ratio is one of the ratio which shows income before interest and taxes with…
Q: Howard has an ROI of 26% based on revenues of $408,000. The investment turnover is 2. What is the…
A: Residual Income: When used in a business context, the term "residual income" refers to the amount of…
Q: CCC Manufacturing Inc. sold equipment that it uses in its business for $110,000. CCC bought the…
A: If the sale value is more than the adjusted value of equipment than it results in Capital gain. If…
Q: George operates a business that has $240,000 of business interest expense and adjusted taxable…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Heg Se & Ea Bue Cab Company had 67,000 shares of common stock outstanding on January 1, 2021. On…
A: Diluted earnings per share (EPS) is a metric used to analyze the quality of a company's EPS after…
Q: Prepare the Statement of Comprehensive Income using the multi-step format. Beautiful Life…
A: Introduction Statement of comprehensive income gives details about all revenue ,income expense or…
Q: ABC Corporation reported the following income and expenses from business for year 2018: Cash…
A: Advance from customers and prepayments are not considered in calculating taxable income for the…
Q: explain the cost management information system's two major subsystems
A: The cost management information system's primary goal is to generate outputs for internal users. To…
Q: uses 34,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are:…
A: Introduction:- The following basic information as follows under:- Currently total cost to make the…
Q: What are the Components of Equity Financing
A: The method of raising capital by selling stock is referred to as equity financing. Companies raise…
Q: is computed using the straight line method. i useful life of the equipment is five years with alue.
A: Unrealized gain refers to the profit made on the sale of an asset that has not been realized yet.…
Q: KES Raw materials Work-in-progress Finished goods Stock on 31"October 2012 40,000 12,000 20,000 KES…
A: Production cost statement shows total costs incurred on production of goods. It includes materials…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45900,000 Contribution…
A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
Q: what is Debit balance and Credit balance in ledger?
A: Introduction: A ledger account is a record of commercial transactions. It is a discrete record…
Q: 1. which of the following transactions and events would result in a deterioration in Quick Ratio?…
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first…
Q: Prepare the company’s Statement of Profit or Loss for the year ended 31 March 20X3, in a form…
A: Given to us is the trial balance and additional information for C L Worcester Ltd who provides…
Q: Company provdes the following ABC costing information: Total Costs Activity-cost drivers itles…
A: Activity Based Costing is a method identifying activities and then assigning indirect cost and…
Q: WT. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly…
A: Introduction: Operating income, also known as income from operations. It is calculated by deducting…
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Inventory Turnover Ratio: The pace at which inventory stock is sold, or utilized, and replaced is…
Q: . The following historical pattern on its credit sales of Rainy Co. was presented: 70% collection…
A: CASH BUDGET: Cash budget gives an estimate of the anticipated receipts and payments of cash during…
Q: What are the similarities and differences between a limited company and a sole trader's statement of…
A: Organization- The organization is the process of identifying and gathering work to be done,…
Q: How does accounting for foreign inflation differ from accounting for domestic inflation?
A: The practice of revising financial statements during inflationary periods is known as inflation…
Q: During Year 1, Peninsula Corporation acquired, as financial ssets at fair value through profit or…
A:
Q: Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2…
A: Solution:- 1)Calculation of return on assets as follows under:- Return on total assets ratio…
Q: Test Company produces two products from a common input: Product A and Product B. One batch of the…
A: Solution... Sales price of product B at split off point = $1500 After further processing = $400…
Q: Under variable costing, how is it possible to increase net operating income without increasing sales
A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as direct…
Q: Grady Corp. is considering the purchase of a new piece of equipment. The equipment costs $50,700,…
A: Solution a: Present value of increase in annual cash flows = $6,110 * PVA of 1 at 13% for 6 periods…
Q: Which of the following bank reconciliation adjustments would result in an increase to the company's…
A: Bank reconciliation is used for reconciling the balance in the banks books with that of the balance…
Q: A client is given a loan of principal amount of R50,000 which accrues interest of 10% per annum,…
A: A loan is a financial arrangement in which the borrower get a lump sum amount and paid it in future…
Q: On January transaction
A: In this question, we have to compute the average number of shares outstanding.
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Formulas: Days' sales uncollected = 365 x Average Accounts receivable / Sales where, Average…
Q: Aboagye Mensah started business on January 1, 2009 with a capital of GHE16.000. The folowing…
A: The trial balance is prepared from the T-accounts of the business and further financial statements…
Q: Newport Corporation purchased equipment for making pneumatic vibration isolators at a cost of…
A: When an existing asset is studied as planning for replacement and its proper execution is known as…
Q: c) Discuss five differences between a lean management approach to accounting and traditional…
A: Lean Accounting: Lean bookkeeping incorporates offering financial statements more clear and…
Q: Why is the statement of cash flows required as part of the set of external financial statements?…
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: which of the following transactions and events would result in an improvement in Dividends per…
A: The dividend per share can be defined as the amount of dividend that can be allocated to each share…
Q: Each share of preference is convertible into 1 ordinary share. In June, ABC converted 4,000 of…
A: The stockholders’ equity for ABC Company on December 31 was: Preference share, P20 par, 60,000…
Q: The ember 31, 2021.
A: Depreciation will be accumulated in that a/c until asset is sold, and later while on selling cost of…
Q: Spiller Corporation plans to issue 12%, 6-year, $560,000 par value bonds payable that pay interest…
A: Total cash proceeds = Present value of interest (annuity) + Present value of maturity value
Q: The cash flow statement provides information on the cash that is obtained from operating activities,…
A: Cash Flow Statement Cash flow statement which has three important segment are there. These segment…
Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…
A: Consolidated financial statements are those financial statements which are the combination of two…
Q: Turnt Company manufactures spray cans of insect repel lent. During August 1, 2010, the company had…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Utilize the weighted average method (for both of the following situations) to determine the…
A: The equivalent units are calculated as the number of units to be completed during the period.
Q: Yoshi Company completed the following transactions and events involving its delivery trucks. Year…
A: Introduction: Depreciation is the reduction in the price of a tangible item owing to a range of…
Q: a. Mr. Smith, the financial controller of LabAid, is convinced that the step-down method allocates…
A:
Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…
A: There are two companies at the time of consolidation. These are parent company and subsidiary…
Exercise 13-6 (Algo) Managing a Constrained Resource [LO13-6]
Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below:
| Recliner | Sofa | Love Seat | ||||
|---|---|---|---|---|---|---|
| Selling price per unit | $ 1,234 | $ 1,855 | $ 1,440 | |||
| Variable cost per unit | $ 800 | $ 1,250 | $ 1,100 | |||
| Upholstery labor-hours per unit | 7 | hours | 11 | hours | 4 | hours |
Required:
1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours?
2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $50 per hour. The management of Portsmouth is confident that this upholstering company’s work is high quality and their craftsmen can work as quickly as Portsmouth’s own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats?
3. Should Portsmouth hire the nearby upholstering company?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- E9.7 (LO 3), AP The managers of Hand It to Me were determined to reduce product costs for the three versions of wireless mouse they carried—small, medium, and large—to be more competitive. All three product types went through production and packaging and generated the need for factory maintenance. The activity rates for these three key activities are as follows. MOH Rates Production $12.00 per DL hour Packaging $5.00 per packaging hour Maintenance $3.00 per machine hour The following resources were consumed for the production of each type of mouse. Small Medium Large Direct labor hours used 3,500 6,000 4,500 Packaging hours used 2,500 3,500 4,500 Machine hours used 5,000 5,000 5,000 Units produced 30,000 40,000 30,000 Required 1. Describe what information the managers used to estimate the three activity rates noted above. 2. Allocate MOH…Refer to Exercise 12.14. Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the information shown on page 680 is provided. Required: 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.Contribution margin per constraint Using the data and your answers from MBA 12-2, determine the following: Assuming the selling price and variable costs for Laminated glass cannot be changed, how much will the furnace hours required for Laminated glass need to Ix- reduced to make it as profitable as Regular glass.
- Exercise 13-10 (Algo) Make or Buy Decision [LO13-3] Futura Company purchases the 70,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.50 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $12.70 as shown below: Per Unit Total Direct materials $ 6.00 Direct labor 2.20 Supervision 1.80 $ 126,000 Depreciation 1.50 $ 105,000 Variable manufacturing overhead 0.80 Rent 0.40 $ 28,000 Total product cost $ 12.70 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $126,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based…Q4 The Portland Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows: Direct materials $4 Variable direct manufacturing labor 22 Variable manufacturing overhead 17 Fixed manufacturing overhead allocated 20 Total manufacturing cost per unit $63 The Counter Company has offered to sell 20,000 units of Part No. 498 to Portland for $58 per unit. Portland will make the decision to buy the part from Counter if there is an overall savings of at least $20,000 for Portland. If Portland accepts Counter’s offer, $5 per unit of the fixed manufacturing overhead allocated would be eliminated. Furthermore, Portland has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. For Portland to…38. Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a single product. Its normal selling price is $27 per unit. The variable costs are $18 per unit. Fixed costs are $18,700 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,490 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income? a.increase of $9,685 b.increase of $5,960 c.decrease of $4,470 d.increase of $7,450
- Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a varietyof consumer electronic products. Unit selling prices and costs for three models of one of its productlines are as follows:[LO 11-7]No Frills Standard Options SuperSelling price $40 $70 $86Direct materials 10 14 16Direct labor (@ $20/hour) 10 20 30Variable overhead 3 6 9Fixed overhead 3 6 6Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead isallocated to products on the basis of machine hours.Required6. How can the optimum product mix be determined when there are more than two products and one ormore constraints?Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a varietyof consumer electronic products. Unit selling prices and costs for three models of one of its productlines are as follows:[LO 11-7]No Frills Standard Options SuperSelling price $40 $70 $86Direct materials 10 14 16Direct labor (@ $20/hour) 10 20 30Variable overhead 3 6 9Fixed overhead 3 6 6Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead isallocated to products on the basis of machine hours.Required3. If the company has excess machine capacity but a limited amount of labor time, how should the optimum short-term product mix be determined? That is, which product is most desirable (profitable)?Which of the three is least desirable (profitable)?____ 56. A business, with excess capacity, received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $20 Unit manufacturing costs: Variable $13 Fixed $1 What is the differential revenue from the acceptance of the offer? a. $200,000 b. $160,000 c. $130,000 d. $140,000 ____ 57. In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries? a. Debit Work in Process--Dept. B; credit Cost of Goods Sold--Dept. A. b. Debit Work in Process--Dept. B; credit Finished Goods--Dept. A. c. Debit Work in Process--Dept. B; credit Work in Process--Dept. A. d. Debit Finished Goods; credit Work in Process--Dept. B. ____ 58. JPAIR Corporation had…
- ch7-45- I have asked this question earlier and i found a possible miscalculation for the total variable costs in step 3. Please check and confirm. ch7-Q#45 Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $90 $205 $252 Variable cost per unit 46 132 140 Total fixed cost is $2,219,240. Required: 1. What is the sales mix of portable grills to stationary grills to smokers? 2. Compute the break-even quantity of each product. 3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution…Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 32 $ 16 Direct labor 24 19 Variable manufacturing overhead 10 9 Traceable fixed manufacturing overhead 20 22 Variable selling expenses 16 12 Common fixed expenses 19 14 Total cost per unit $ 121 $ 92 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your…QUESTION NO 3: The Knot manufactures men’s neckwear at its Spartanburg plant. The Knot is considering implementing a JIT production system. The following are the estimated costs and benefits of JIT production: a. Annual additional tooling costs $250,000 annually. b. Average inventory would decline by 80% from the current level of $1,000,000. c. Insurance, space, materials-handling, and setup costs, which currently total $400,000 annually, would decline by 20%. d. The emphasis on quality inherent in JIT production would reduce rework costs by 25%. The Knot currently incurs $160,000 in annual rework costs. e. Improved product quality under JIT production would enable The Knot to raise the price of its product by $2 per unit. The Knot sells 100,000 units each year. The Knot’s required rate of return on inventory investment is 15% per year. 1. Calculate the net benefit or cost to The Knot if it adopts JIT production at the Spartanburg plant. 2. What nonfinancial and qualitative factors…
