Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 15, Problem 37E
1.
To determine
Recreate the material element of the time and material pricing formula to imitate the markup on material cost.
2.
To determine
Calculate the amount of new price, which has to be quoted on the yacht refurbishment job.
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1. Explain the differences between fixed, variable, and semi-variable costs and provide examples of each.Â
2. Explain the difference between General Depreciation System (GDS) and the Alternative Depreciation System (ADS).
3. How would you compute the following in order submit a proposal for a new administrative assistant for your department, Exhibit 10-1?
Hourly Rate = $14.15
Vacation, Holiday, Sick Pay (You set the number of vacation, holiday, and sick pay)
Annual Compensation Package Request = (You set the compensation. Could be training days, education days, etc.)
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7. Explain the concept of a present-value analysis.
In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually.
Â
Inspection Cost =Â Â Â Â SR 4
               Cost of Interest =    SR 4
               Insurance Cost =    SR 2
               Administration Cost     =    SR 4
               Obsolescence              =    SR 3
               Depreciation Cost        =    SR 2
               Breakage Cost             =    SR 2
Â
Given that the annual Demand is 500,000.
Â
Number of order?
Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver.
Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.
Chapter 15 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - List and briefly describe four major influences on...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Define the following terms: total revenue,...Ch. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - List the four common cost bases used in cost-plus...Ch. 15 - List four reasons often cited for the widespread...Ch. 15 - What is the primary disadvantage of basing the...Ch. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Explain the phrase price-led costing.Ch. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Could tear-down methods be used effectively for...Ch. 15 - Briefly describe the time-and-material pricing...Ch. 15 - Explain the importance of the excess-capacity...Ch. 15 - Prob. 24RQCh. 15 - Describe the following approaches to pricing new...Ch. 15 - Prob. 26RQCh. 15 - Briefly explain the potential negative...Ch. 15 - Prob. 28ECh. 15 - Prob. 29ECh. 15 - Prob. 30ECh. 15 - The marginal cost, marginal revenue, and demand...Ch. 15 - Prob. 32ECh. 15 - Refer to the cost and production data for the Wave...Ch. 15 - Prob. 35ECh. 15 - The following data pertain to Royal Lighting...Ch. 15 - Prob. 37ECh. 15 - Badger Valve and Fitting Company, located in...Ch. 15 - North American Pharmaceuticals, Inc. specializes...Ch. 15 - MPE, Inc. will soon enter a very competitive...Ch. 15 - Prob. 41PCh. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Alexis Kunselman, president of Pharsalia...Ch. 15 - Southern Tier Heating, Inc. installs heating...Ch. 15 - Omaha Synthetic Fibers Inc. specializes in the...Ch. 15 - Prob. 47PCh. 15 - Prob. 48CCh. 15 - Zylar Industries is a manufacturer of standard and...
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- Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. Develop a formula to express the cost behavior exhibited by the company’s maintenance cost. Round "Variable cost per tour mile" to 3 decimal places.arrow_forwardWrite a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver.a. Direct materials cost is $2.70 per pound b. Total cost is fixed at $800 per month regardless of the number of units produced. c. Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven. d. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.arrow_forwardRequired : i) List the alternatives facing Zee Manufacturing with respect to production of component S6 . ii) List the relevant costs for each alternative if Zee decides to purchase the component from Bryan . Predict whether the operating income will increase or decrease and better alternatives . b) Refer to the information for Zee Manufacturing above . Assume that 75 % of Zee Manufacturing's fixed overhead for component S6 would be eliminated if that component were no longer produced . Required : If Zee decides to purchase the component from Bryan , predict whether the operating income will increase or decrease and propose the better alternatives .arrow_forward
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