Basel uses the high-low method of estimating costs. Basel had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, and total costs were $78,000. Basel would estimate variable cost per unit as
Q: Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract…
A: Solution:-The inquiry concerns Quatro's bond issuance on January 1, 2021, outlining details about…
Q: On December 1, Cheyenne Furniture Corporation borrowed $8,800 on a 90-day, 15% note. Prepare the…
A: Notes payable are the liabilities noted in the business records when borrowing is made from outside…
Q: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable…
A: Through ratio analysis, companies can evaluate both their financial strengths and weaknesses.…
Q: On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The…
A: The inventory valuation is very important, the inventory is generally shown at cost at the balance…
Q: Exercise 21-4 (Algo) Preparing flexible budget performance report LO P1 Complete the following…
A: The flexible budget is prepared for the actual level of production using the standard rates. The…
Q: NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021.…
A: Taxable income is the income earned by an individual, firm or company that is eligible to pay taxes…
Q: In 2023, Tom and Alejandro Jackson (married filing jointly) have $204,000 of taxable income before…
A: The government imposes extra direct and indirect taxes in addition to any income tax obligations.…
Q: Colleen Company has gathered the following data pertaining to activities it performed for two of its…
A: Activity-based costing:In activity-based costing the overheads are allocated to different products…
Q: Wheatmore Company manufactures cold cereal products, such as Frosted Flakes. Assume that the…
A: Equivalent Units of Production -A technique used by manufacturers to monitor and distribute expenses…
Q: Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2;…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: ! Required information [The following information applies to the questions displayed below.] Ramirez…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Pharoah Company is a very profitable small business. It has not, however, given much consideration…
A: To prepare a correct bank reconciliation, we need to compare the bank statement with the company's…
Q: Your Corporation had 60,000 shares of $5 par value common stock authorized, 40,000 shares issued and…
A: Cash dividend is the amount of money paid by the entity in the form of return to the shareholders of…
Q: Alyeska Services Company, a division of a major oil company, provides various services to the…
A: The ratio analysis is done based on the income statement, balance sheet, and a statement of cash…
Q: Escargot Inc. is a 5-star restaurant in Cincinnati. The restaurant sells 500 gift cards during…
A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…
Q: Franklin Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: The purchase budget is prepared to estimate the number of the units to be purchased during the…
Q: The Pension Trust Fund maintained by the city of Marydell had the following transactions and events…
A: Journal entry contains the data which is significant to a single business transaction, including the…
Q: Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report…
A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
Q: Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The…
A: The objective of the question is to prepare the accounting for the defined benefit plan of Goodday…
Q: The following information is provided for each Investment Center. Investment Center Cameras Phones…
A: Return on investment is used for finding out how efficiently the investment was put to use. The…
Q: Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has…
A: Tax Liability -A person's or business's outstanding debt to the government is referred to as their…
Q: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed…
A: The costs expended for legal services rendered by a licensed lawyer or law firm are referred to as…
Q: The following data are taken from the financial statements, determine for the current year the (a)…
A: A framework for tracking and assessing continuous performance about predetermined goals and targets…
Q: $100,000 of 5% annual interest, 10-year bonds were sold at 98 (98.0%) when the market rate of…
A: The bonds are reported as the long-term liabilities in the balance sheet. The bonds are issued to…
Q: Cash receipts January February March $ 107,000 $ 113,000 $ 133,000 Cash payments For inventory…
A: The budget is prepared to estimate the requirements for the period. The cash budget records the cash…
Q: Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a…
A: Plantwide overhead rate is a single rate that is calculated by dividing the Budgeted Fixed…
Q: a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your…
A: IAS 16 Property, plant and equipment is the standard that deals with depreciation. Under this…
Q: Please calculate the change in operating income due to cost leadership. Label each component as to…
A: To calculate the change in operating income due to cost leadership, we need to analyze the…
Q: Complete the following partial flexible budget performance report, and indicate whether each…
A: Flexible Budget for variable cost is calculated by multiplying budgeted variable cost per activity…
Q: Equipment was acquired at the beginning of the year at a cost of $34,750. The equipment was…
A: The book value of an asset refers to the difference between the original cost of an asset and the…
Q: Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-the…
A: Forecasting future sales and profits is based on contribution margin analysis. Businesses may create…
Q: C (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025.…
A: Retirement Benefit:Retirement refers to the time when the employees who are working in the…
Q: Total Income \table[[Lower Bound, Upper Bound, Rate,\ table[[Maximum Money in], [Bracket]],…
A: Solution:-The post includes a table that outlines tax brackets and rates, along with corresponding…
Q: 68. How much is to be included in the gross estate from the proceeds of life insurance? MoonLife…
A: Gross estateThe value of all the assets and property of a person or individual at the time of death…
Q: Bramble Company accumulated the following standard cost data concerning product I-Tal. Direct…
A: Standard cost per unit is the per unit cost estimated to be incurred by the entity on the product.…
Q: The following information is available for Market, Incorporated and Supply, Incorporated at December…
A: The account receivables turnover ratio is calculated to assess the efficiency of the collections…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: The cash budget is the statement prepared by the management in advance assuming future possible cash…
Q: Accounting A and B, unrelated individuals, were the sole shareholders of L corporation. A was a 60%…
A: The liquidation of the corporation results in substantial tax consequences for both the corporation…
Q: Ahrends Corporation makes 41,000 units per year of a part it uses in the products it manufactures.…
A: The objective of the question is to determine the maximum amount that Ahrends Corporation should be…
Q: Required: Part A Prepare a predistribution plan for this partnership. Part B The following…
A: The process of closing a business and distributing its assets is called liquidation. The assets are…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Under step method of allocating service costs, the service cost of service department allocated to…
Q: The Assembly Division of Scottish Motors Company has offered to purchase 90,000 batteries from the…
A: The decision making for the proposal related to whether the Electrical Division should accept the…
Q: Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are…
A: Break-even point is the point in sales at which contribution margin is equal to total fixed cost. It…
Q: Revise your worksheet to reflect these updated assumptions and then answer the questions that…
A: The inventory is a part of the working capital, the entity holds inventory to sell and make revenue.…
Q: The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance…
A: CLOSING ENTRIESPreparation of closing entries is a method the business entity uses to close its…
Q: An old machine that originally cost $9,500 thus far has accumulated depreciation of$1,900. The…
A: The objective of the question is to determine whether the company should keep the old machine or…
Q: Oriole Inc.'s only temporary difference at the beginning and end of 2024 is caused by a $3.15…
A: Deferred tax liability:The deferred tax liability is the amount that is created when the company has…
Q: if a company billed its branch at 25% markup and sent goods at billed price 187500, the company…
A: The objective of the question is to determine the correct accounting entry that the company would…
Q: Required Complete the cash receipts journal for those transactions indicated. There are no sales…
A: The accounting journal that is used to record cash receipts and cash discounts is called the cash…
Q: Highlands Company uses the weighted-average method in its process costing system. It processes wood…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Step by step
Solved in 3 steps with 3 images
- Company XYZ produced and sold 6,000 units. The selling price per unit was OMR10. The variable manufacturing cost per unit was OMR5. The variable selling and administrative expenses per unit was OMR4. The total fixed expenses were OMR2,000. Calculate the total contribution margin. of tion Select one: O a. OMR60,000 b. OMR6,000 O c. OMR58,000 O d. OMR4,000 e. OMRB0,00O Beginning raw materials inventory was OMR85,000. During the month, OMR175,000 of raw materials was purchased. A count at the end of the month revealed that OMR54,000 of RM was still present. The cost of indirect materials used during the month was OMR15,000. What of is the cost of direct materials used? tion Select one: O a. OMR119,000 18Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立Company XYZ produced and sold 6,000 units. The selling price per unit was OMR10. The variable manufacturing cost per unit was OMR5. The variable selling and administrative expenses per unit was OMR4. The total fixed expenses were OMR2,000. Calculate the total contribution margin. Select one: O a. OMR60,000 O b. OMR6,000 Oc. OMR30,000 O d. OMR4,000 O e. OMRS8,000
- HL Co. uses the high-low method to derive a total cost formula. Using a range of units produced from 1,500 to 7,500, and a range of total costs from $21,000 to $45,000, producing 2,000 units will cost HL: a. $8,000 b. $12,000 c. $23,000 d. $29,000Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $10, Manufacturing overhead $5, and Selling costs $10; Annual fixed costs $78,000. What is the contribution margin percentage? O a. 60% O b. 70% O c. 68% O d. 32% е. None of the given answersMazoon Company has information on its revenue and costs is as follows: Selling price per unit $120; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $60,000. What is the contribution margin percentage? O a. 35% O b. 73.3% O C. 80% Od. 65% O e. None of the given answers
- Connor Company's fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15. What is the break-even sales (units) if the variable costs are increased by $2? a. 30,770 units b. 50,000 units c. 40,000 units d. 26,667 units Which of the following statements is correct using the direct costing concept? a. All manufacturing costs are included in the calculation of cost of goods manufactured. b. All manufacturing costs are considered period costs. c. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs. d. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs. Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.The residual income for Mason is a. $1,500 b. $0 c. $84,150 d. $(6,000)Wesley's income statement is as follows: Sales (10,000 units) Less variable costs Contribution margin Less fixed costs Net income $150,000 - 48,000 $102,000 - 24,000 $ 78,000 What is the unit contribution margin? A. $12.00 B. $ 7.20 C. $ 4.80 D. $10.20be determined using the above information Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $125; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $10, Manufacturing overhead $5, and Selling costs $10; Annual fixed costs $78,000. What is the contribution margin percentage? O a. None of the given answers O b. 68% O c. 70% d. 32% e. 60% NEXT PAGE AGEVindows but Jail ENG G 4)
- Company XYZ has three products A, B and C. The sales mix for products A, B and Care 7, 5 and 4 units respectively. The contribution margin per unit for products A, B and C are $900, $600 and $400 respectively. Assuming that the fixed costs were $2,272,000. What is the breakeven point in units (in total)? (rounded to the nearest number) O a. 800 O b. 1,641 O c. None of the given answers O d. 6,745 O e. 3,335Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $70; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $85,000. What is the contribution margin percentage? a. 40% b. 52.5% C. 60% d. None of the given answers e. 70%Company XYZ has three products A, B and C. The sales mix for products A, B and C are 8, 6 and 5 units respectively. The contribution margin per unit for products A, B and C are $900, $600 and $400 respectively. Assuming that the fixed costs were $4,544,000. What is the breakeven point in units (in total)? (rounded to the (nearest number .a 1,641 .b 800 .c 3,335 .d 6,745