A company incurred $80,000 of common fixed costs and $120,000 of
common variable costs. These costs...
A company incurred $80,000 of common fixed costs and $120,000 of
common variable costs. These costs are to be allocated to
Departments A and B. Data on capacity provided and capacity used
are as follows:
Capacity Provided
Capacity Used
Department
in Hours
in Hours
A
400
320
B
240
320
Assume that both fixed and variable costs are allocated on the
basis of capacity used. The fixed and variable costs allocated to
Department A are
Fixed
Variable
a.
$50,000 $75,000...
Product
Wham
Blam
sales
300,000
200,000
less variable cost
180,000
130,000
contribution margin
120,000
70,000
less...
Product
Wham
Blam
sales
300,000
200,000
less variable cost
180,000
130,000
contribution margin
120,000
70,000
less Fixed cost
90,000
60,000
Income (loss) from operations
30,000
10,000
Management is considering the discontinuance of the manufacture
and sale of Blam at the beginning of the current year. The
discontinuance would have no effect on the total fixed costs and
expenses or on the sales of Wham
What is the amount of change in net income for the current year
that will result...
At Exodus Inc., 40,000 units are produced and 30,000 units are
sold for a total of...
At Exodus Inc., 40,000 units are produced and 30,000 units are
sold for a total of $720,000 in the first year of operations,
resulting in operating income of $240,000. Fixed manufacturing
costs are $120,000 and administrative costs are $80,000. Given
this, the cost of the ending finished goods inventory under the
absorption costing approach is
Select one:
a. $80,000.
b. not able to be determined from the provided information.
c. $ 70,000.
d. $110,000.
e. $90,000.
f. $100,000.
g. $120,000.
Davies Company's Utility Cost at various levels of activity are
shown below:
Month
Units Utility Cost...
Davies Company's Utility Cost at various levels of activity are
shown below:
Month
Units Utility Cost
April
70,000 $198,000
May
60,000 $174,000
June
80,000 $222,000
July
90,000 $246,000
Requirement 1: Given the above information, use the High-Low
method to compute the variable and fixed portion of utility cost.
Show your computations and indicate the cost equation. (5
points)
Requirement 2: Using the equation from requirement 2, compute
total cost estimate if 75,000 units are produced. Show your
computations.
Gribble Company’s high and low level
of activity last year was 60,000 units of product produced...
Gribble Company’s high and low level
of activity last year was 60,000 units of product produced in May
and 20,000 units produced in November. Machine maintenance costs
were $104,000 in May and $40,000 in November. Using the high-low
method, determine an estimate of total maintenance cost for a month
in which production is expected to be 45,000 units.
a. $90,000
b. $96,000
c. $78,000
d. $80,000
how did we solve it and get D?
Balance Sheet
2016
2015
2014
Cash
50,000
45000
40,000
Accounts receivable
80,000
70000
60,000
Inventories
180,000...
Balance Sheet
2016
2015
2014
Cash
50,000
45000
40,000
Accounts receivable
80,000
70000
60,000
Inventories
180,000
145000
110,000
Plant & equipment
300,000
280000
260,000
Less accumulated depreciation
-40,000
-30000
-20,000
Total assets
570,000
510000
450,000
Accounts payable
100,000
125000
150,000
Accrued liabilities
70,000
60000
50,000
Mortgage payable
80,000
40000
60,000
Common stock
130,000
110000
90,000
Retained earnings
190,000
175000
160,000
Total liabilities and equity
570,000
510000
450,000
Income Statement
2014
2015
2016
Net Sales
680,000
600,000
640000
Cost of goods...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20 per unit. Variable manufacturing costs were $9
per unit, and variable marketing costs were $3 per unit sold. Fixed
costs amounted to $220,000 for manufacturing and $80,000 for
marketing. There was no year-end work-in-process inventory. Assume
the income tax rate of 40%.
d. Compute the sales units required to earn a net income (income
after taxes) of $120,000 during the year.
e. If Luxvano’s...
The Indigo Girls Company has the capacity to produce 90,000
units per year. Normal production and...
The Indigo Girls Company has the capacity to produce 90,000
units per year. Normal production and sales are 75,000 units per
year. The normal selling price is $15 per unit. At the 75,000 unit
level of activity, unit costs are as follows:
Direct material $2.25 per unit Variable Overhead $1.50 per unit
Fixed Overhead $2.00 per unit ($150,000 total)
Direct Labor $1.75 per unit Variable Selling $1.00 per unit
Fixed Selling $1.20 per unit ($80,000 total)
A special one-time customer...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20 per unit. Variable manufacturing costs were $9
per unit, and variable marketing costs were $3 per unit sold. Fixed
costs amounted to $220,000 for manufacturing and $80,000 for
marketing. There was no year-end work-in-process inventory. Assume
the income tax rate of 40%. REQUIRED: (Show your detailed
computations!)
a. Compute Luxvano’s break-even point in sales dollars for the
year.
b. Compute the margin of safety...