Current Attempt in ProgressThe bill of materials for each product at Kevin's Office Supply is very specific, right down to the number of casters needed for eachoffice chair. Kevin recognizes how important these documents are for planning purposes, but his operations managers appreciatethem as well since they use this information to guide their material requisitions when it's time for production.Here are the budgeted product costs and selling prices, respectively, for the company's three key products:Office chairSit-to-stand deskPrinter standProduct Cost$165250Show Transcribed Text(b)145Kevin has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to sayKevin was surprised when his accountant reported significantly less profit margin than what he was expecting is the understatementof the year.According to the accountant, the difference is almost entirely attributable to the significant and recent increase in shipping costs forthe company's raw materials. These higher freight costs caused a 20% increase to the budgeted product costs presented above.Selling Price$299435* Your answer is incorrect.275Gross margin percentageCHow much of a reduction in gross margin did each product sustain after recognizing the higher costs? (Round answers to 2 decimalploces, eg. 52.75%)Office chairC33.78 96Sit-to-stand desk31.03 %Printer stand36.73 %

Profit margin is a measure of profitability. It is calculated as the percentage of revenue that a…

Answered: The bill of materials for each product…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...

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The bill of materials for each product at Steven’s Office Supply is very specific, right down to the number of casters needed for each office chair. Steven recognizes how important these documents are for planning purposes, but his operations managers appreciate them as well since they use this information to guide their material requisitions when it’s time for production.Here are the budgeted product costs and selling prices, respectively, for the company’s three key products: Product Cost Selling Price Office chair $145 $259 Sit-to-stand desk 230 395 Printer stand 125 235 Steven has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say Steven was surprised when his accountant reported significantly less profit margin than what he was expecting is the understatement of the year.According to the accountant, the difference is almost entirely attributable to the significant…
The bill of materials for each product at Donald's Office Supply is very specific, right down to the number of casters needed for each office chair. Donald recognizes how important these documents are for planning purposes, but his operations managers appreciate them as well since they use this information to guide their material requisitions when it's time for production. Here are the budgeted product costs and selling prices, respectively, for the company's three key products: Product cost Selling Price Office chair $130 $229 Sit to Stand desk $215 $365 Printer stand $110 $205 Donald has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say Donald was surprised…
The bill of materials for each product at Donald's Office Supply is very specific, right down to the number of casters needed for each office chair. Donald recognizes how important these documents are for planning purposes, but his operations managers appreciate them as well since they use this information to guide their material requisitions when it's time for production. Here are the budgeted product costs and selling prices, respectively, for the company's three key products: Product Cost Selling Price Office chair $130 $229 Sit-to-stand desk 215 365 Printer stand 110 205 Donald has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say Donald was surprised when his accountant reported significantly less profit margin than what he was expecting is the understatement of the year. According to the accountant, the difference is almost entirely attributable to the significant and recent increase in shipping costs…
Given the following information from Rowdy Enterprises direct materials budget, how much direct materials needs to be purchased?
Bookworm.com, an online book retailer, has two operating departments corporate sales and consumer sales and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operations independently. The company uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2022: 1 Home Insert Page Layout A 2 4 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human resources department 5 6 Budgeted number of employees Support work supplied by information 7 systems department 8 Budgeted processing time (in minutes) Formulas Data Review B с SUPPORT DEPARTMENTS Human Information Resources Systems $72,700 $234,400 320 21 View E OPERATING DEPARTMENTS F Corporate Consumer Sales Sales $998,270 $489,860 42 1,920 28 1,600 1.Allocate the support departments' costs to the operating departments…
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Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.

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