An example of an uncontrollable cost would include all of the following except ________. A) hourly rate of pay for the company's purchasing manager B) federal income tax rate paid by the company C) real estate taxes charged by the county in which the business operates D) per-gallon cost of fuel for the company's delivery trucks
Q: Revilla Corporation's manufacturing costs were as follows: Prime Costs P400,000 Straight-line…
A: Computation of costs should be inventoried for external reporting purposes: Amount Prime…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Which of the following statements is false? (You may select more than one answer.)a. The same cost…
A: Fixed costs: Fixed costs are those costs which remain unchanged even there is a change in the…
Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…
A: Income from the offer acceptance = Units * ( Sale Price - Variable Manufacturing Cost)
Q: An air-conditioning system is installed in a building under construction. Thebill for installation…
A: An invoice amount includes costs and taxes.
Q: Applewhite Corporation, a manufacturing company, is analyzing its cost structure in a project to…
A: The correct answer is Option (2).
Q: Kertas, Inc. produces paper and office supplies and uses the just-in-time inventory system.…
A: Just in time inventory system is the system where the Purchase is done only when it is required , so…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The budget is prepared for estimating the revenue and expenditure. It is used for planning and…
Q: If the company plans to increase promotion expense by RM20,000, how will that affect the…
A: In absorption costing, which is also known as full costing includes all manufacturing costs of both…
Q: 1. Which of the following is an example of a fixed cost? Paper used in the manufacturing of…
A: Answer 1 The fixed costs are the costs which are fixed and which remain fixed with any level of…
Q: The company's total general company overhead would be unaffected by this decision. Required: 1.…
A: In accounting we have to make decisions like buy or make a particular asset. This includes…
Q: Suppose a loyal customer requested to a special order to buy 100 units at $5.50 per unit. This is a…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Which of the following is an example of a mixed cost? a.rental costs of $10,000 per month plus…
A: In case of mixed costs there costs compromise of both the variable and fixed cost components
Q: our Corporation has received a request for a special order of 6,000 units of its product for a…
A: The special order can be considered if it comes under the manufacturing capacity of the business and…
Q: Classifying Costs as Product or Period Costs Suppose that you have been given a summer job as an…
A: Product cost: Product costs are quite simply the costs incurred to make a product. Generally, direct…
Q: National Co. produces small electric engines. It incurs the following costs for the year. Which of…
A: Manufacturing overhead costs are all indirect costs which are incurred during manufacturing process…
Q: Gwen is the managerial accountant in charge of Company A, which sells water bottles. She previously…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Cost…
Q: Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the…
A: Here we should consider only relevant costs. Here all costs are relevant costs
Q: sing the high-low method, determine which month is the lowest? Using the high-low method, determine…
A: High low method is used to calculate variable cost and fixed cost from the mixed cost of product.
Q: Identify Fixed and Variable Costs Intuit Inc. develops and sells software products for the personal…
A: Fixed cost refers to the cost that remains fixed i.e. it does not change with the changing level of…
Q: business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P…
A: Solution: Contribution margin is the margin of profits which is the excess part of sale price over…
Q: Classify the following type of cost with necessary reasons: 1.A company had paid 15,50,000 to a…
A: Cost which are created in the past and it cannot be easily changed by making any decision in the…
Q: W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for…
A: Whenever an organization equals their variable costs and total fixed costs with the total sales…
Q: Rebe is looking over two sets of calculations done by a new employee. Set A presents the original…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax.…
A: Weighted average contribution margin ratio : =(Weight * contribution margin ratio) of Advisory…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The discrepancy between the planning budget and the flexible budget, which is produced by the…
Q: Suppose that both the direct material and rent costs are tied to the таниfаcturing of the equivalent…
A: Compute the average unit costs for direct materials assigned to 900,000 units as follows:
Q: Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses…
A: Formula: Profit or ( loss ) = Revenues - costs Deduction of costs from revenues derives the Profit (…
Q: Assume the company has 300 units left over from last year which have small defects. These units will…
A: Relevant costs are those costs which are relevant for the purpose of decision making. Irrelevant…
Q: The WSJ recently presented data suggesting that United Airlines was not covering its costs on…
A: The Total Cost is the real cost of producing a certain amount of output. It included both variable…
Q: Identify Fixed and Variable Costs Intuit Inc. develops and sells software products for the personal…
A: Variable cost : The variable cost is based on the production volume . the variable cost is always…
Q: Identify the type of cost with reasons: 1.A company had paid 8,00,000 to a marketing research…
A: Sunk cost are the cost which have been created in the past and cannot be changed by any decision in…
Q: Bunyon Lumber Company incurs a cost of $490 per hundred board feet in processing certain "rough cut"…
A: Given the following information: Bunyon Lumber Company incurs a cost of $490 per hundred board feet…
Q: Assume that a company manufactures and sells a variety of products, one of which it refers to as…
A: Formula: Financial advantage (disadvantage) of dropping product A = Total savings - Unavoidable…
Q: Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that…
A: Product cost refers to the measure of estimating the desired expenses incurred by a business in…
Q: For questions 5-6, please classify the costs of each of the following as variable, fixed, mixed, or…
A: The question is related to the classification of costs on the basis of behavior. There are three…
Q: Rings Company has three product lines, A, B, and C. The following financial information is…
A: Operating income is the income generated by daily business operations. The operating income refers…
Q: Product A has revenue of $195,600, variable cost of goods sold of $114,200, variable selling…
A: Differential analysis: Differential analysis refers to the analysis of differential revenue that…
Q: A product called Wallaby has revenue of $1,250,000, variable costs of goods sold of $850,000,…
A: If loss making product Wallaby is discontinued then the entire fixed cost will be allocated to other…
Q: breakeven point of the Company
A: Definition: Break Even Point: It is the amount necessary for covering up the variable and fixed…
Q: Arrow is a chain of used car dealers with showrooms in Lincoln, Derby, and Sheffield and a separate…
A: The contribution margin is the difference between the selling price and the variable cost. In other…
Q: How do I determine if the standard coffee line should be continued or discontinued?
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following items would not be considered a manufacturing cost? a. Cream for an ice cream maker. b. Sales commissions for a car manufacturer. c. Plant property taxes for an ice cream maker. d. Tires for an automobile manufacturer.Construct an income proforma operating statement using the following information. It should show the following on a whole dollar basis: PGI (rental income and other income itemized), vacancy & collection loss, EGI, operating expenses, OER, and NOI. 64,000 SF warehouse Market rent is $9.25/SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, and common area maintenance (CAM). Market vacancy in this market is 3.5%. Market collection loss is 0.5%. Operating expenses include: insurance: $0.10/SF Real estate taxes: $2.75/SF CAM: $0.20/SF Management fee: 3% of EGI Replacement reserves: Based on a sinking fund factor for $195,000 in 7 years in an interest-bearing account with a rate of 4% (annual compounding).Howard Cooper, the president of Vernon Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required A Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 42,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Vernon charges customers $83 per hour, the firm can achieve 52,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if…
- Howard Cooper, the president of Thornton Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 42,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Thornton charges customers $79 per hour, the firm can achieve 48,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the…Howard Cooper, the president of Stuart Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Stuart charges customers $80 per hour, the firm can achieve 36,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm…Which one of the following is an example of a committed cost? O a. None of the given answers O b. The cost of annual end of year celebration O c. The cost of employee training program O d. The salary of the marketing manager O e. The salary of the chief operating officer 6. AR tv MacBook Air DII F8 F6 F7 F5 & 8.
- Classifying Costs as Product or Period Costs Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank. 1. Depreciation on salespersons’ cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors’ salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9.…Exercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NB) offers only checking accounts. Customers can write checks and use a network of automated teller machines. NB earns revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transactions Managing functions Total overhead Cost Driver Number of uses Number of visits Number of transactions Total deposits Cost $ 1,936,800 1,900,800 8,521,920 7,321,600 $ 19,681,120 Driver Volume 3,228,000 uses 396,000 visits 129,120,000 transactions $ 615,035,000 in deposits Data on two representative customers follow: Emily Jacob ATM uses 40 130 Branch visits 5 Number of transactions Average deposit 200 45 520 $ 10,000 $ 10,000Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's ManufacturingIncome StatementMonth Ending August 31, 2018
- Identify Fixed and Variable Costs Intuit Inc. develops and sells software products for the personal finance market, including popular titles such as Quickbooks® and TurboTax®. Classify each of the following costs and expenses for this company as either variable or fixed to the number of units produced and sold: a. Packaging costs b. Sales commissions c. Property taxes on general offices d. Shipping expenses e. Straight-line depreciation of computer equipment f. President’s salary g. Salaries of software developers h. Salaries of human resources personnel i. Wages of telephone order assistants j. Users' guidesIdentify the type of cost with reference to marginal costing principles: 1.A company had paid P100,000 to a marketing research company to find expected demand of the newly developed product of the company 2.A company has invested P45,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities. 3.Accountant of a cloth factory paid P115,000 for water which has been used for washing the clothes.Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores? Multiple Choice cost of goods sold at each store store manager salaries store building depreciation expense the cost of corporate advertising aired during the Super Bowl