Q: Bigdeal Corporation manufactures paper and paper products and istrying to decide whether to purchase…
A:
Q: Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the…
A: Make optical switch Outsource optical switch Difference (make-difference) Variable cost:…
Q: Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a…
A: Cost: It refers to the direct and indirect expenses incurred to produce a final product.
Q: Jim Salters, the COO of CryoDerm, has asked his cost management team for a product-line…
A: Life cycle costing is a method to determine the profitability of a product over its life.
Q: The costs above relate to making both the lip balm and the tube that contains it. As an alternative…
A: Since you have posted a question with multiple subparts, we answer first sub parts for you. To get…
Q: Pix Paper Inc. produces photographic paper for printing digital images. One of the processes for…
A: Computation of Cost per pound - Working
Q: Clason, Inc. manufactures door panels. Suppose clason is considering sending the following amounts…
A: Cost of new quality program = 68000 + 27000+ 39000 +58000 = $ 192000 Cost of old program = 86000+…
Q: Harris Systems has decided to adopt ABC. To remain competitive, Harris Systems’s management believes…
A:
Q: What is the standard cost per unit for widgets
A: Standard cost: standard cost is the budgeted cost of a product before doing anything in a company…
Q: Ivanhoe Industries manufactures and sells three different models of wet-dry shop vacuum cleaners.…
A: Product Economy Standard Deluxe Selling price $31.00 $53.20 $97.90…
Q: Pearson Company manufactures a variety of electronic printed circuit boards (PCBs) that go into…
A: particulars In-house production Outsourcing production Soldering operation not applicable $4.80…
Q: ualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational…
A: Part 2 a:
Q: CommunicationTAC Industries sells heavy equipment to large corporations and to federal, state, and…
A: Job order costing: Job order costing system provides a separate record for each particular quantity…
Q: The manager of the SkyHigh division of Superball Corp. is faced with a decision on whether or not to…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: The following are some quotes provided by a number of managers at Hawkeye Machining Company…
A: Lean manufacturing: Lean manufacturing is based on the Kaizen principle. The process of continuous…
Q: Taylor Electronics, Inc. (TEI), has been approached by a new customer who wants to place a one-tirme…
A:
Q: a. Calculate selling prices for each of the Citizen, the Sovereign and the Excelsior using the…
A: Allocating all of the direct expenses related to producing a good to COGS is known as absorption…
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: Standard cost is the cost that has been estimated by the company for the upcoming year. In this…
Q: Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a…
A: Given: The summary statics from last year's purchases is given as follows,
Q: Winner's Circle has just received a special one-time order for 875 medals at $305 per medal. For…
A: Incremental analysis is carried out to ascertain if the available alternative is profitable for the…
Q: How would ROI be affected if the invested capital were measured at gross book value, and the gross…
A: Return on Investment (ROI) is the ratio between income and the average capital assets. ROI is used…
Q: Jim Salters, the C00 of CryoDerm, has asked his cost management team for a product-line…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Suppose a quality manager is to make a decision between two manufacturing processes for the…
A: The expected cost is the cost that a manufacturer is expected to spend on producing a single unit of…
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: The question is related to calculation of Standard Cost per unit. It ia calculated with the help of…
Q: It's Your Turn. Show Us What You Know Shannon's Brewery in Keller, Texas is considering using a…
A: Let the level of sales be ‘$ X’. At $ X level, the cost of hiring outside sales force and cost of…
Q: learsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the…
A: Activity : Activity rate Testing components 462 =1200000/(1800+780+10+10) Reordering…
Q: Setting materials, labor, and overhead standards is challenging. If standards are set too low,…
A:
Q: Dixie Irwin is the department manager for Religious Books, a manufacturer of religious books that…
A: Here, the manager's bonus is dependant on the cost reduction measures more particularly reducing the…
Q: TAC Industries, Inc. sells heavy equipment to large corporations and federal, state, and local…
A:
Q: Cain Components manufactures and distributes various plumbing products used in homes and other…
A: ( Computation of overhead rate ) = Overhead rate = { Total overhead estimated / Estimated…
Q: Is Tandy's plan ethical?
A: Job order costing: Job order cost system provides a separate record of each particular quantity of…
Q: Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent…
A: Indirect cost are those which cannot directly allocate to cost of production. The correct option and…
Q: Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a…
A:
Q: TAC Industries Inc. sells heavy equipment to large corporations and federal, state, and local…
A: TAC Industries Inc. sells heavy machinery to different categories of clients. Corporations are one…
Q: TAC Industries sells heavy equipment to large corporations and to federal, state, and local…
A:
Q: Moisha is developing material standards for her company. The operations manager wants grade A…
A: Since actual costs could not be predicted in advance, standard costs represent approximations of the…
Q: David Kelley is considering the implementation of an incentive wage plan to increase productivity in…
A: Definition and Goal Accomplishment Plan:Incentive wage is the income earned by the employees in case…
Q: QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational…
A: 2(a) :- The following costs can be avoided by closing the plant and therefore are relevant to the…
Q: Some consulting firms say that by including suppliers into the product development process…
A: The answer:
Q: s Tandy's plan ethical?
A:
Q: CHS is a large multidivision firm. One division, Health Services, is well known inside CHS for its…
A: A lease is a contract under which lessee gets the right to use an asset by the lessor in exchange…
Q: Santana Rey has found that Business Solutions’s line of computer desks and chairs has become…
A: Given that: Limited direct labour hours = 1015
Q: The manager of the SkyHigh division of Superball Corp. is faced with a decision on whether or not to…
A: Hey, since there are multiple requirements posted, we will answer the first three requirements. If…
Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often creating friction with the plumbing wholesalers. Because there are several manufacturers who produce to the same specifications, price competition is often intense. The salesperson for Tricon recently offered a price concession to capture an order. Here are the specifics. The salesperson bid a job at $14,275 (list price). Tricon endeavors to sell at list price, and enjoys a 42% gross margin on the pipe in question at list price. In order to gain the "business" and to secure her commission, the salesperson offered the customer a 14% price discount. Calculate the percent change (+/-) in gross margin. Report your answer as a percentage and round to the nearest percent.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Silven's president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated. The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $13 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $96,000 charge for fixed manufacturing overhead will be absorbed by the product under the company's absorption costing system.…CommunicationTAC Industries sells heavy equipment to large corporations and to federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the government, however, are determined on a cost plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost.Tandy Lane is the cost accountant for the Equipment Division of TAC Industries Inc. The division is under pressure from senior management to improve income from operations.As Tandy reviewed the division’s job cost sheets, she realized that she could increase the division’s income from operations by moving a portion of the direct labor hours that had been assigned to the job order cost sheets of corporate customers onto the job order costs sheets of government customers. She believed that this would create a win-win for the division by (1) reducing the cost of corporate jobs…Trehan, Inc. is an established manufacturer of equipment used in the railroad industry. All of Trehan’s sales prices include installation and training. The installation process does not involve changes to the features of the equipment and other companies could be hired to do the installation but most customers have Trehan do the installation. Similarly, other companies could be hired to do the training or customers can learn how to operate the equipment on their own but most have Trehan do the training for their employees. Trehan, Inc. has the following information regarding a sale to Metrarail: Metrarail enters into an agreement with Trehan Inc. on November 1, 2021. Metrarail is purchasing equipment item #201, training, and installation from Trehan for a price of $2,000,000. Metrarail selects the options to have Trehan to perform the installation and training. In addition, Metrarail will purchase a 2 year warranty for $60,000 for a total price of $2,060,000. The agreement specifies…
- TAC Industries Inc. sells heavy equipment to large corporations and federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the government, however, are determined on a cost-plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost. Tandy Lane is the cost accountant for the Equipment Division of TAC Industries Inc. The division is under pressure from senior management to improve income from operations. As Tandy reviewed the division's job cost sheets, she realized that she could increase the division's income from operations by moving a portion of the direct labor hours that had been assigned to the job order cost sheets of corporate customers onto the job order costs sheets of government customers. She believed that this would create a “win–win” for the division by (1) reducing the cost of corporate jobs, and (2)…TAC Industries, Inc. sells heavy equipment to large corporations and federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to the government are determined on a cost plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost. Tandy Lane is the cost accountant for the Equipment Division of TAC Industries Inc. The division is under pressure from senior management to improve operating income. As Tandy reviewed the division's job cost sheets, she realized that she could increase the division's operating income by moving a portion of direct labor hours that had been assigned to the job cost sheets of corporate customers onto the job order cost sheets of government customers. She believed that this would create a "win-win" for the division by (1) reducing the cost of corporate jobs, and (2) increasing the cost of…Sterling Industries produces machine parts as a contract provider for a large manufacturing company Sterling produces two particular parts, shafts and gears. The competition is keen among contract pro- ducers, and Sterling's top management realizes how vulnerable its market is to cost-cutting competitors Hence, having a very accurate understanding of costs is important to Sterling's survival Sterling's president, Sheila Hudson, has observed that the company's current cost to produce shafts is $21.41, and the current cost to produce gears is S12.73. She indicated to the controller that she suspects some problems with the cost system because Sterling is suddenly experiencing extraordinary competition on shafts, but it seems to have a virtual corner on the gears market. She is even considering dropping the shaft line and converting the company to a one-product manufacturer of gears. She asked the controller, George Coleman, to conduct a thorough cost study and to consider whether changes…
- Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the All- Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs (a1) Selling price $ eTextbook and Media $29 Save for Later 29 Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the All- Body swimsuit? 42 $100 Assistance Used Attempts: 0 of 3 used Submit AnswerBradley Nowell works as a purchaser at Louie Dog Industries. He is in charge of purchasing dog beds from manufacturers. Bradley's mother, seeing an opportunity, starts a dog bed manufacturing company and quickly receives almost all of Louie Dog's orders. In order to fill the orders, Bradley's mother buys low-quality beds from another dog bed supplier and sells those to Louie Dog for a substantial markup. In fact, the price charged to Louie Dog is twice what other manufactures would charge the company. What type of scheme is this? Pay-and-return Non-accomplice vendor Pass-through Inventory-markupRoscoe Construction Company (RCC) is a company specializing in building roads and highways. As a part of its business, it receives supplies of aggregate from two suppliers: Toorak Gravel (TG) and Kilda Corporation (KC). RCC purchasing has expressed a preference for KC based on price, but occasionally has to order from TG when KC cannot fill the order. RCC has recently had problems with the quality and the timeliness of deliveries. When a supplier delivers a load to RCC, it goes through an initial inspection to assure it meets specification. If the load fails the initial inspection, it goes through a secondary inspection to determine the exact issue. Almost always, the issue can be resolved and the load can be used. The initial inspection costs $1,000 per load. A secondary inspection, which is more thorough, costs $5,000 per load. If a delivery is delayed, RCC has to hire temporary workers or pay overtime to some employees. The average cost of a delayed load is $2,000. The following are…
- TAC Industries, Inc. sells heavy equipment to large corporations and federal, state, and local governments. Corporate sales are the result of a competitive bidding process, where TAC competes against other companies based on selling price. Sales to government, however, are determined on a cost plus basis, where the selling price is determined by adding a fixed markup percentage to the total job cost. Tandy Lane is the cost accountant for the Equipment Division of TAC Industries, Inc. The division is under pressure from senior management to improve income from operations. As Tandy reviewed the division's job cost sheets, she realized that she could increase the division's income from operations by moving a portion of the direct labor hours that had been assigned to the job order cost sheets of corporate customers onto the job order cost sheets of government customers. She believed this would create a "win-win" situation for the division by (1) reducing the cost of corporate jobs, and…M4 Engineering has two divisions, the Fabrication Division and the Airplane Division. The Airplane Division may purchase engine mounting clamps from the Fabrication Division or from outside suppliers. The Fabrication Division sells engine mounting clamps both internally and externally. The market price for is $5,000 per 100 mounting clamps. The following conversation took place between the controllers of the Fabrication Division and Airplane Division: • Airplane Division: I hear you are having problems selling mounting clamps out of your division. Maybe I can help. • Fabrication Division: You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part of the same company. • Airplane Division: What kind of price could you give me? • Fabrication Division: Well, you know as well as I that we are under strict profit…Asbury Coffee Enterprises (ACE) manufactures two models of coffee grinders: Personal and Commercial. The Personal grinders have a smaller capacity and are less durable than the Commercial grinders. ACE only recently began producing the Commercial model. Since the introduction of the new product, profits have been steadily declining, although sales have been increasing. The management at ACE believes that the problem might be in how the accounting system allocates costs to products. The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, which is representative, manufacturing overhead totaled $2,037,000 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Personal Commercial Total Direct materials $ 1,445,000 $ 620,000 $ 2,065,000 Direct labor 1,030,000 667,500 1,697,500 Management has determined that overhead costs are caused by three cost…