A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities The firm has calculated that the following costs have been incurred during the last month: $ Staff completing timesheets 5,000 3,000 Managers analysing costs incurred on assignments compared to fees agreed with clients Credit control team updating the receivables ledgers to write off bad debts 500 Using the information provided, what are the firm's direct data capture costs for the last month? $500 $5,000 $8,000 $8,500
Q: How to journalize entries from accounting for purchase with frieght transaction?
A: On any purchase if freight charges paid it is called freight in charges and it is part of cost of…
Q: As Reported Annual Balance Sheet Report Date Scale Assets Cash & cash equivalents Receivables, net…
A: Introduction: Working capital : Deduction of Current liabilities from current Assets derives the…
Q: 1. The annual contribution limit to a 401(k) plan is _____. Answer: A. $6,000 B.…
A: An IRA payroll deduction represents the contribution made from the salary of the employee towards…
Q: IFRS is a Single set of high quality, globally accepted and enforced set of standards that require…
A: IFRS refers to International Financial Reporting standards which are the globally accepted…
Q: In 2018, Titus paid #6,000,000 to purchase land containing a total estimated 160,000 tons of…
A: Depletion rate per ton= (Initial purchase amount - salvage value] / capacity of extraction of…
Q: Production department records show the following: beginning work in process of 25,000 units (100%…
A: Explanation of Concept Process Costing : Process costing is the costing method which is been used to…
Q: ABC Partnership decided to admit Dan who invested P100,000 for a 20% interest in a partnership with…
A: Dan is the new partner who is admitted for an investment of P100000 for 20% interest. Total…
Q: Swifty Corporation, which has a taxable payroll of $1300000, is subject to FUTA tax of 6.2% that…
A: Introduction: Payroll is the compensation that a company must pay to its staff members for a set…
Q: What are the control weaknesses you noted? b. What are the possible risks that can happen due to…
A: Control weakness is the weakness within the system which has been implemented by the company in…
Q: The accounting records of Calvin Architects include the following selected, unadjusted balances at…
A: Balance of office supplies account is $ 600 And given that office supplies in hand is $100 So…
Q: On August 5, 2020, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet. The…
A: Various accounting transactions will be recorded with the journal entries in the books of accounts…
Q: PERIOD 1 2 3 4 5 COST P45,000 69,500 49,550 39,400 55,500 59,000 41,500 UNIT 5,000 8,500 5,650 4,200…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: Expected sales Variable costs 10,000 units @ £8 £5 per unit £21,000 Fixed costs Assume Sales volume…
A: The Break even point is the point of No profit no loss as at this point the firm is earning a zero…
Q: A machine has a first cost of P200,000. At the end of its economic life of 10 years, its scrap value…
A: Introduction: A double-declining balance method is an accelerated form of depreciation wherein the…
Q: Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two…
A: The contribution margin is calculated as difference between sales and variable costs. The break even…
Q: 1- How efficiently are we using our time? 2- Will we be ahead or behind schedule? 3- How efficiently…
A: Efficiently usage of time means that the project or even any work which has been taken by the…
Q: Common Stock:Shares Issued 150,000 Common Stock Par Value $15.00 Stock-buy back price (cost) $40.00…
A: Treasury stock are the shares bought back (reacquired) by the issuing company. The working is shown…
Q: What was the adverse labour efficiency planning variance for July? $86,400 © $77,760 $93,960 $97,200
A: Variance analysis and standard costing are the tools that managers use for determining performance…
Q: On January 1, 2016, Rexford Company purchased a drilling machine for $11,500. The machines has an…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,360…
A: The income statement is prepared by the management to identify the performance of the business. It…
Q: 37)At Dec 31, Michael Corp has the following bank information: Cash balance per bank $4,500…
A: Introduction: Bank reconciliation statement: To reconcile the differences between cash book and pass…
Q: On Oct 1, 20X1, ABC Company acquired an equipment for P102,000. Estimated residual value is P2,000…
A: Depreciation is the decrease/reduction in the value of asset due to its use, wear and tear. The…
Q: May, Jun, and Julie are partners with profit and loss ratio of 3:3:2 and capital balances of…
A: partnership is the simplest form of the business where two or more person join hand in order to…
Q: QUESTION 1 Dee and Co. Limited makes and sells a particular product. At the moment, the company uses…
A: The requirement is to prepare an income statement under the absorption costing method and marginal…
Q: Bicol Company uses approximately 20 material in its manufacturing operatio On December 1, 2021, the…
A: A call option gives the buyer the right to buy the option at a particular price on or before…
Q: Prepare the journal entries to record the following transactions, in the books of Holman Dress…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: iarism please Q1. Limited liability is a we
A: Partnership refers to the legal form of agreement between two or more persons who decide to run the…
Q: Problem 4-13 Net Operating Losses (LO 4.9) Tyler, a single taxpayer, generates business income of…
A: Net operating loss incurred by a company in a given year could be set off with the Income of the…
Q: On January 1, Concord Corporation had 172000 shares of $10 par value common stock outstanding. On…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the…
A: Journal is maintained in an orderly manner. Usually, the journal ledger maintained has five columns…
Q: Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: Tournal entry? Feb. 23. Sold merchandise on account to Dr. Judith Salazar, $41,500. The cost of the…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Another name…
Q: Prepare income statement Particulars Sales Purchases Salaries Motor expenses Rent Insurance General…
A: Lets understand the basics. Income statement is prepared for calculating income/expenses/net income.…
Q: Swifty Corporation, which has a taxable payroll of $1300000, is subject to FUTA tax of 6.2% that…
A: Introduction: Total amount of federal and state unemployment tax : Sum of both federal unemployment…
Q: Prepare income statement Particulars Sales Purchases Salaries Motor expenses Rent Insurance General…
A: Income statement means the statement which shows all nominal account and reflect the net profit or…
Q: Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two…
A: We know that contribution margin equals sales minus variable expenses .However when we calculate the…
Q: Complete the reconciliation for the property, plant and equipment note for Retriever Ltd at 31…
A: Re-measurement is an act which is made by the company in order to revalue or re-measure the carrying…
Q: Cash balance per bank $4,500 Outstanding checks $200 Deposits in transit $1,000 Credit memo for…
A: The management prepares bank reconciliation statements at a specific date. This statement is used to…
Q: Assume that your company is an all-equity firm with 1,000,000 shares outstanding. The company's EBIT…
A: Given: Number of shares outstanding = 1,000,000 shares EBIT = $10,000,000 EPS =DPS (Company…
Q: Edward Foster is a building contractor. He and his customer have agreed that he will submit a bill…
A: In case of construction, for accounting purpose the most appropriate method to follow is POC method.
Q: Famous detergents 2019 income statement showed pretax accounting income of 1,500,000. To compute…
A: Deferred tax can be future tax liability or asset for an organisation with respect to differences…
Q: JE for A?
A: Here asked for the journal entry related with the construction of library and its total proceedings…
Q: The following data below relates to units shipped and total shipping expense have been assembled by…
A: As per high low method, variable cost = (cost at highest unit- cost at lowest unit)/(Highest unit-…
Q: using the macrs rates from the following table, what is the book value of a $3000 computer after 3…
A: As per MACRS table, the depreciation for first 3 years and accumulated depreciation is as follows:…
Q: Beginning inventory and purchases Units Unit Cost Total Cost Jan 1 60 $7 $420 April 1 45
A: Formula: WAC = Cost of goods available for sale / Units available for sale
Q: Sheldon and Amy own a plumbing business as a sole proprietorship. The file a joint return and are…
A: QBI deduction means the way by which the taxpayers reduce their tax obligation associated with…
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…
A: Solution 1-a: Sales Price 25 Less: Variable cost per unit 15 Contribution Margin per unit 10…
Q: Received rent from ruck in 2019 $87,000 Municipal bond income $111,000 Depreciation for tax purposes…
A: Pre tax accounting income was also called as earnings before tax. It can be found out by subtracting…
Q: Amber gears sells gears to HTC Car Repair during 2018.It offers rebates of 2% on purchases up to…
A: Normal purchase made in parts during the year= $300,000 Purchases on March 25, 2018= $74,000 of…
Q: Nick steals two checks from Pauline-a blank check and a check payable to the order of Retail Outlets…
A:
Step by step
Solved in 2 steps
- Golding Bank provided the following data about its resources and activities for its checking account process: Required: 1. Calculate the capacity cost rate for the checking account process. 2. Calculate the activity rates for the four activities. If the total number of statements issued was 20,000, calculate the cost of the issuing statements activity. 3. What if process improvements decreased the number of customer inquiries, leading to a 10 percent reduction in check processing hours and a 10,000 reduction in total resource costs? Update all the activity rates for these changes in operating conditions.Indicate whether the statement describes reporting by the financial accounting function or the managerial accounting function of an organization. The users of the report are managers who need a daily summary of work done each shift. The report is a job cost sheet for jobs completed in a 24-hour period. The annual report is released each year on the companys website. The report is audited by the companys certified public accountant firm. The report is prepared every day because the customer service manager needs information about inventory ready to be shipped to customers.Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.
- Materiality Joseph Knapp, a newly hired accountant wanting to impress his boss, stayed late one night to analyze the office supplies expense. He determined the cost by month for the previous 12 months of each of the following: computer paper, copy paper, fax paper, pencils and pens, notepads, postage, stationery, and miscellaneous items. Required What did Joseph think his boss would learn from this information? What action might be taken as a result of knowing it? Would this information be more relevant if Joseph worked for a hardware store or for a real estate company? Discuss.The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow. Month Special Analyses CustomerAccounts PaychecksProcessed AccountingService Costs 1 1 190 1,100 $ 58,800 2 1 260 1,010 61,600 3 2 270 1,170 59,200 4 2 250 920 59,100 5 3 160 1,280 60,600 6 2 170 1,180 61,900 7 1 340 830 59,000 8 4 220 1,220 61,400 9 3 150 1,210 61,300 10 1 230 1,270 60,100 11 2 220 1,130 60,200 12 2 300 930 61,200 13 3 190 1,010 59,700 14 3 290 1,120 60,700 15 4 300 910 60,500 16 2 180 980 60,200 Totals 36 3,720 17,270 $ 965,500 In addition to the above information, you learn that the accounting department had the following total…the supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date and that agrees with the new category this will change the required allowance of uncollectible accounts from $180,000 to $135,000. Identify the key internal and external stakeholders. what are the negative impacts that can happen if you do not follow the instructions of the supervisor?
- Refer to the interview in Exercise 4.17 (especially to Question 4 and 7). The general ledger reveals the following annual costs: Supervisor’s salary $ 64, 600 Clerical salaries 210,000 Computers, desks, and printers 32,000 Computer supplies 7,200 Telephone expenses 4,000 ATM $ 1,250,000 All non labor resources, other than the ATM, are spread evenly among the eight credit department employees (in terms of assignment and usage). Credit department employees have no contact with ATMs. Printers and desks are used in the same ratio as computers by the various activities. Required: Determine…Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the mising amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use Taccounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for detemining the cost of materials used, total manufacturing cost incured, and cost of goods manufactured. Data for February Decrease in materials inventory $3,300 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,600 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $29,400 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing costs incurred in…1. Indicate whether the following statements describe reporting by the financial accounting function or the managerial accounting function of an organization. The users of the report are managers who need a daily summary y of work done each shift. The report is a job cost sheet for jobs completed in a 24-hour period. The annual report is released each year on the company’s website. The report is audited by the company’s certified public accountant firm. The report is prepared every day because the customer service manager needs information about inventory ready to be shipped to customers.
- TIGHT LINES FISHING AND CAMPING SUPPLIES (NETWORKED COMPUTER SYSTEM AND MANUAL PROCEDURES) Tight Lines Fishing and Camping Supplies is a New York–based wholesaler of fishing and camping equipment that serves fishing and camping retailers throughout the north east. Tight Lines uses a centralized accounting system with networked terminals in the departments. You have been hired by Tight Lines to evaluate their processes, risks, and internal controls. The following paragraphs describe Tight Lines payroll and fixed asset systems. Payroll System Each day Tight Lines employees record their hours worked on time cards, which their supervisors review for correctness and submit to the payroll department at the end of the workweek.Using a terminal connected to the central payroll system, which is located in the data processing department, the payroll clerk inputs the time-card data, prints hard copies of the paychecks, prints two copies of the payroll register, and posts to digital employee…You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.Types of Responsibility Centers Consider each of the following independent scenarios: a. Terrin Belson, plant manager for the laser printer factory of Compugear Inc., brushed his hair back and sighed. December had been a bad month. Two machines had broken down, and some factory production workers (all on salary) were idled for part of the month. Materials prices increased, and insurance premiums on the factory increased. No way out of it; costs were going up. He hoped that the marketing vice president would be able to push through some price increases, but that really wasnt his department. b. Joanna Pauly was delighted to see that her ROI figures had increased for the third straight year. She was sure that her campaign to lower costs and use machinery more efficiently (enabling her factories to sell several older machines) was the reason why. Joanna planned to take full credit for the improvements at her semiannual performance review. c. Gil Rodriguez, sales manager for ComputerWorks, was not pleased with a memo from headquarters detailing the recent cost increases for the laser printer line. Headquarters suggested raising prices. Great, thought Gil, an increase in price will kill sales and revenue will go down. Why cant the plant shape up and cut costs like every other company in America is doing? Why turn this into my problem? d. Susan Whitehorse looked at the quarterly profit and loss statement with disgust. Revenue was down, and cost was upwhat a combination! Then she had an idea. If she cut back on maintenance of equipment and let a product engineer go, expenses would decreaseperhaps enough to reverse the trend in income. e. Shonna Lowry had just been hired to improve the fortunes of the Southern Division of ABC Inc. She met with top staff and hammered out a 3-year plan to improve the situation. A centerpiece of the plan is the retiring of obsolete equipment and the purchasing of state-of-the-art, computer-assisted machinery. The new machinery would take time for the workers to learn to use, but once that was done, waste would be virtually eliminated. Required: For each of the above independent scenarios, indicate the type of responsibility center involved (cost, revenue, profit, or investment).