Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.10 and sold for $65.95. A finished desk can be sold for $74.00. The additional processing cost to complete the finished desk is $6.45.Prepare a differential analysis. Round your answers to two decimal places.Differential AnalysisSell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) DesksProcess Further intoFinished Desks(Alternative 2)Revenues per deskCosts per deskProfit (loss) per deskSell UnfinishedDesks(Alternative 1)DifferentialEffects(Alternative 2)Should the company sell unfinished desks or process further and sell finished desks?Oficina Bonita Company should

Sell or process further is a decision making analysis. In this, the costs for both the alternatives…

Answered: Oficina Bonita Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $35.20 and sold for $65.60. A finished desk can be sold for $76.00. The additional processing cost to complete the finished desk is $6.60. Prepare a differential analysis. Round your answers to two decimal places. Differential AnalysisSell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Sell UnfinishedDesks(Alternative 1) Process Further intoFinished Desks(Alternative 2) DifferentialEffects(Alternative 2) Revenues per desk $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Costs per desk fill in the blank 4 fill in the blank 5 fill in the blank 6 Profit (loss) per desk $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Should the company sell unfinished desks or process further and sell finished desks?Oficina Bonita Company should .
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $36.55 and sold for $65.60. A finished desk can be sold for $74.50. The additional processing cost to complete the finished desk is $6.00. Prepare a differential analysis. Round your answers to two decimal places. Differential AnalysisSell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Sell UnfinishedDesks(Alternative 1) Process Further intoFinished Desks(Alternative 2) DifferentialEffects(Alternative 2) Revenues per desk $ $ $ Costs per desk Profit (loss) per desk $ $ $ Should the company sell unfinished desks or process further and sell finished desks?Oficina Bonita Company should .
ficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.10 and sold for $65.45. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.30. Prepare a differential analysis. Round your answers to two decimal places. Differential AnalysisSell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Sell UnfinishedDesks(Alternative 1) Process Further intoFinished Desks(Alternative 2) DifferentialEffects(Alternative 2) Revenues per desk $ $ $ Costs per desk Profit (loss) per desk $ $ $ Should the company sell unfinished desks or process further and sell finished desks?Oficina Bonita Company should.
Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly…
An unfinished desk is produced for $35.00 and sold for $65.60. A finished desk can be sold for $76.00. The additional processing cost to complete the finished desk is $6.00. Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary. Differential Analysis Sell Unfinished Desk (Alternative 1) or Process Further into Finished Desk (Alternative 2) Sell UnfinishedDesk(Alternative 1) Process FurtherintoFinished Desk(Alternative 2) DifferentialEffects(Alternative 2) Revenues, per unit Costs, per unit Profit (loss)
An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $5.95. Provide a differential analysis for further processing.
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 12,000 shelves $144,000    $14,800    $130,000    24,000 shelves 288,000    28,600    130,000    48,000 shelves 576,000    56,200    130,000    60,000 shelves 720,000    70,000    130,000    1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Variable Cost Utilities Mixed Cost Depreciation Fixed Cost 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round…
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 6,000 shelves $72,000    $7,900    $135,000    12,000 shelves 144,000    14,800    135,000    24,000 shelves 288,000    28,600    135,000    30,000 shelves 360,000    35,500    135,000    1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit)…
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 6,000 shelves $72,000    $8,400    $125,000    12,000 shelves 144,000    15,300    125,000    24,000 shelves 288,000    29,100    125,000    30,000 shelves 360,000    36,000    125,000    1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per…
Please show your computations using good accounting form through excel. Thank you! Problem: By products In Department III of SAMCIS Company, a portion of the materials (a by-product) is removed further processed and sold. The Company uses the reversal cost method to account for the by-product. Data for June include: Amount of by-product removed is 2,000 units; Estimated sales price of by-product after processing further is P1.20/unit. Estimated processing cost after separation is P0.30 per unit and estimated selling expenses is 10% of the sales price. The estimated profit margin is 5% of the sales price. What is the gain (loss) on sale of the by-product if all of the units are sold at P1.50?
Cost of the three alternative methods of processing work in an office is stated below:A-Manual: Total fixed cost PM=3,000Variable cost per case=48B-Semi-Automatic:Total fixed cost PM=9,000Variable cost per case=28C-Fully automatic:Total fixed cost PM=25,000Variable cost per case=8Identify the indifference and state your results. For what volume of cases it will be preferred between each of A, B and C?
Please show your computations using good accounting form through excel. Thank you! Problem: By products In Department III of SAMCIS Company, a portion of the materials (a by-product) is removed further processed and sold. The Company uses the reversal cost method to account for the by-product. Data for June include: Amount of by-product removed is 2000 units; Estimated sales price of by-product after processing further is P1.20/unit. Estimated processing cost after separation is P0.30 per unit and estimated selling expenses is 10% of the sales price. The estimated profit margin is 5% of the sales price. What is the total cost of the by-product?

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