Concept explainers
1.
Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment
Cost for each division in the cafeteria for June.
2.
Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers and employee wages. mapping the formal plan.
The cost allocated to each division for June.
3.
Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.
Criticism that can be made of the allocation made.
4.
Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.
Remedies taken to neutralize the strategies.
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MANAGERIAL ACCOUNTING F/MGRS.
- The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?arrow_forwardBolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and variable costs for the current year are as follows: Bolgers total fixed costs aggregate to 360,000. Bolgers labor agreement is expiring at the end of the year, and management is concerned about the effects of a new labor agreement on its break-even point in units. The controller performed a sensitivity analysis to ascertain the estimated effect of a 10-per-unit direct labor increase and a 10,000 reduction in fixed costs. Based on these data, the break-even point would: a. decrease by 1,000 units. b. decrease by 125 units. c. increase by 375 units. d. increase by 500 units.arrow_forwardJules Company manufactures and sells two products GK320 and GK340. It had budgeted to produce 25,000 units each for both GK320 and GK340. The following costs were incurred during 2020, the company’s first year of operations. Variable Cost per unit Details GK320 $ GK340 $ Direct materials 18 13 Direct labour 5 7 Variable overheads 2 7 Fixed production overhead 200,000 200,000 Fixed selling and administrative overheads for the company was $65,000. During 2020, the company produced 20,000 units for GK320 and 15,000 units for GK340. The company sold 16,000 units for GK320 and 10,000 units for GK340. The selling price of the company’s product is $50 per unit for both products. Required for both products: a) Compute the ending inventory for the year. b) Assume the company uses the absorption costing method: i. Compute the total cost to…arrow_forward
- Yummy bakes (Pty) Ltd is a company that bakes cakes. The company budgeted to bake 1 500 cakes and budgeted fixed manufacturing overheads (FMO) were R112 500 in the year 2022. Actual results revealed that the company produced 1 300 cakes and incurred R95 000 of fixed manufacturing overheads. What is the predetermined FMO recovery rate per unit? a. R75 per unit b. R73 per unit c. R63 per unit d. R86 per unit Please don't provide answer in image format thank youarrow_forwardRodriguez Manufacturing prices its products at full cost plus 40 percent. The company operates two support departments and two producing departments. Budgeted costs and normal activity levels are as follows: Support Departments Producing Departments A B C D Overhead costs $20,000 $50,000 $90,000 $120,000 Square feet 2,000 2,400 4,000 12,000 Number of employees 20 30 60 40 Direct labor hours - - 10,000 6,400 Machine hours - - 6,000 10,800 Support Department A's costs are allocated based on square feet, and Support Department B's costs are allocated based on number of employees. Department C uses direct labor hours to assign overhead costs to products, while Department D uses machine hours.One of the products the company produces requires 4 direct labor hours per unit in Department C and no time in Department D. Direct materials for the product cost $45 per unit, and direct labor is $20 per unit.If the sequential method of allocation is used and the company follows…arrow_forwardCompany XYZ has 2 fixed price contracts for 2 different clients. The company has enough capacity for both contracts but is uncertain whether they will be profitable. Data as follows: Customer AAA BBB Component Type A999 B999 Contract Value(GHȼ) 27,000 100,000 Contract Quantity 1,000 unit 2,000 units Material cost/unit GHȼ15 GHȼ20 Moulding time/batch 5 hours 7.5 hours Batch Size 100 units 50 units Annual Budgeted overheads as follows: Activity Cost Driver Cost driver volume/yr Cost pool Moulding Moulding hours 2,000 GHȼ150,000 Inspection Batches 150 GHȼ75,000 Production Management Contracts 20 GHȼ125,000 Required: Calculate the activity based costs and profits for each contractarrow_forward
- How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%arrow_forwardFor P1,000 per box, the Leo Products, Inc. produces and sells delicacies. Direct materials are P400 per box and direct manufacturing labor averages P75 per box. Variable overhead is P25 per box and fixed overhead is P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000 per year, with sales commissions of P100 per box. Production is expected to be 100,000 boxes, which is met every year. For the year just ended, 75,000 boxes were sold. What is the inventoriable cost per box using variable costing. Group of answer choices P770 P500 P475 P625arrow_forwardH Ltd manufactures and sells two products – J and K. Annual sales are expected to be in theratio of J:1 K:3. Total annual sales are planned to be £420,000. Product J has a contribution tosales ratio of 40% whereas that of product K is 50%. Annual fixed costs are estimated to be£120,000.The budgeted break-even sales value (to the nearest £1,000) is:(A) £196,000(B) £200,000(C) £253,000(D) £255,000arrow_forward
- The Shibuya Division of Mihoyo manufactures "Genshin Impact" and sells them in the Japanese market for P6,000 each. The following data are from the Shibuya Division's 2018 budget: Variable cost- P3,800 per unit Fixed overhead-P6,080,000 Total assets-P12,500,000 Mihoyo has instructed the Shibuya Division to budget a rate of return on total assets (before taxes) of 20%. 1. Suppose the Shibuya Division expects to sell 3,400 units during 2018: a. What rate of return will be earned on total assets? b. What would be the expected capital turnover? c. What would be the operating income percentage of sales? 2. The Shibuya Division is considering adjustments in the budget to reach the desired 20% rate of return on total assets: a. How many units must be sold to obtain the desired return if no other part of the budget is changed? b. Suppose sales cannot be increased beyond 3,400 units. How much must total assets be reduced to obtain the desired return? Assume that for every P1,000…arrow_forwardPakshal electric company manufactures a number of electric products. Rechargeable light is one of the Pakshal’s products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights. Required: 1. Compute break-even point of the company in dollars and units. 2. According to a research conducted by sales department, a 10% reduction in sales price will result in 25% increase in unit sale. Please comment whether proposal should be accepted or rejected. Suggestion: (Dear students , I suggest you to use a sheet and prepare two income statements in contribution margin format, one using the current price and one using proposed price (10% below the old sales price) and then comment whether proposal should be accepted or rejected. 3. Compute the number of rechargeable lights to be sold to earn a net operating income of…arrow_forwardA division sold 100,000 calculators during 2019: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the contribution margin per unit? $2 $7 $17 $13arrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning