Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's Electronics Division can produce the transistors for a cost of $4.00 each, and it has plenty of capacity to manufacture the units. The $4.00 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs. The range of a possible transfer price should be Oa. $3.51 to $3.99 Ob. $3.25 to $3.50 Oc. $3.26 to $3.49 Od. $3.26 to $3.99
Q: 10 10 10 9 6.00% 6.00% 0.00% 0.00% 1 2 1 2
A: Comment - Multiple Questions Asked. Bonds - Bonds are a sort of instrument where the issuer owes the…
Q: E9-18 Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2022. The…
A: The process of debiting the asset's cost and crediting a depreciation account is known as…
Q: Comparative financial statements for Weller Corporation, a merchandising company, for the year…
A: The liquidity ratios are calculated to learn about the efficiency of the business to pay off its…
Q: e accrual-based oportion of debt and assets. income statement and the ca
A: Statement of cashflow shows the inflow and outflow of cash transactions under operating activity ,…
Q: ndhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral…
A: NPV(Net present Value) is the technique which has been used to evaluate a business project, in…
Q: What is the difference between expenses versus assets?
A: Expenses and assets are both important components of a business’s financial health. Assets are items…
Q: 5. Help me selecting the right answer. Thank you
A: In this question, we will calculate the percentage of gross profit for Smith Company and Jones…
Q: What is "balanced" in the balanced scorecard approach?
A: The correct answer is: (D)The emphasis on financial and non-financial performance measurements. The…
Q: d costs costs ct labor time variance is 7,100 6,200
A: Answer : Direct labor time variance = (Actual hour* Standard rate) - (Standard hour* Standard rate)…
Q: If a business had sales of $3,632,000 and a margin of safety of 20%, the break-even point was Oa.…
A: Breakeven is the point in the cost volume and profit analysis at which an entity is in a situation…
Q: Terminology Matching Asset Turnover Ratio Current Ratio Days in Inventory Ratio Debt to Assets Ratio…
A: Terminology matching is a concept where some terminologies or terms are provided in one column and…
Q: A major benefit of a decentralized organization is that:
A: Decentralization means top-level management delegated authority and responsibilities of…
Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: When an auditor decreases the planned assessed level of control risk because certain control…
A: Audit report represents the report prepared by an auditor that shows the opinion of the auditor on…
Q: ABC Co. produces products R, J, and C from a joint production process. Each product may be sold at…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: The management of Wy Corporation would like to investigate the possibility of basing its…
A: Predetermined Overhead Rate :— It is calculated by dividing estimated manufacturing overhead cost by…
Q: Trading debt investments include
A: The correct answer is: (B) debt securities that the investor plans to sell in the very near future.…
Q: You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The…
A: Requirement:-a Given, The shops sell 15 racing bikes per week at a retail price of $ 659.99 During…
Q: Magnolia, Inc., manufactures bedding sets. The budgeted production is for 11,000 comforters this…
A: Total materials required for Budgeted production = Budgeted production in units ×Material required…
Q: “I’m not sure we should lay out $350,000 for that automated welding machine,” said Jim Alder,…
A: Solution 1: Computation of annual cost saving promised by Welding machine Particulars Amount…
Q: The management of Wy Corporation would like to investigate the possibility of basing its…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The overhead…
Q: Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 1. Aries Company provided the following information: 800,000 Balance per book, March 31 Cash…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: In a defined benefit pension plan, the bears all of the fund's investment performance risk, while in…
A: According to a few people, normal lifestyles coverage plans are normally related to low returns. One…
Q: Panhead’s Bike Shop had net sales of $382,500 and the cost of goods sold were $172,300. Operating…
A: The gross profit is calculated as difference between sales and cost of goods sold. Operating income…
Q: Murawski Company Balance Sheet December 31 Current Assets Investments Cash and cash equivalents…
A: The inventory turnover ratio is calculated to know about the rate at which inventory is being used…
Q: Allowance for Doubtful Accounts has a credit balance of $613 at the end of the year (before…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: Cash outflows generated by capital investments include all of the following except: a) Initial…
A: Capital investment is a cash outflow for the business that comes along with other cash outflows…
Q: "Bates, how are you handling gossip in your department? I'm sure that you and your team are hearing…
A: In essence, "gossip" is gossiping about other people and their personal lives. Okay, I admit that…
Q: Tomasino's inventory records show the following data at January 31: Beginning inventory Jan. 1 100…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…
Q: Q(4) In the case of a bankruptcy of a 'sole proprietorship', the business person a) Is liable only…
A: In a Sole Proprietorship business there is only one single owner/investor who owns all the assets…
Q: Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be…
A: The sales projection and the anticipated amount of finished goods inventory to be on hand are…
Q: n June 30, 2022 Maxim Corp purchased 7%, $100,000 10 year bonds. Interest is paid annually on Dec…
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: Zoe Corporation has the following information for the month of March: Cost of direct materials used…
A: Cost of goods manufactured is the cost incurred on the making of the goods whereas the cost of goods…
Q: Consider three corporati same industry. In genera in this industry have a PE
A: Corporation- A corporation is a legal entity that, in the eyes of the law, has the identity of a…
Q: This is a more difficult but informative problem. James Brodrick & Sons, Incorporated, is growing…
A: The dividend payout ratio refers to the amount that is paid as dividends to the shareholders in…
Q: A company uses the average cost retail method to estimate inventories. Data for the first six months…
A: Ending inventory is the inventory that is in hand at the end of the period. It is estimated based on…
Q: A company manufactures three products using the same production process. The costs incurred up to…
A: Lets understand the basics. When more than one product is produced from the single process then all…
Q: The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop.…
A: Whenever an investment is made, many prospects are taken into consideration whether the total…
Q: The standard costs and actual costs for direct materials for the manufacture of 2,780 actual units…
A: Direct material variances are the difference between the costs estimated for the direct material and…
Q: A manufacturer completed the production of goods costing $361,000 and transferred them to finished…
A: Cost of Goods Manufactured :— It is the total cost incurred in the manufacturing of completed…
Q: Find the book value of office equipment purchased at a cost C at the end of the nth year if it is to…
A: The amount to be reduced from the value of a fixed asset every year throughout its useful life is…
Q: Inglewood Industries has net sales of $936,600 and average net receivables of $223,000 for the year.…
A: MEANING OF RECEIVABLE TURNOVER RATIO This ratio shows how long a time takes place to collect the…
Q: Production costs (18,900 units): Direct materials Direct labor $171,300 235,500 247,300 93,300…
A: Using absorption Costing, all fixed and variable manufacturing costs are included in the product…
Q: Selecting the method or procedure that yields less net income is an application of Select one: O a…
A: Accounting principles are the set of rules and instructions which should be followed while preparing…
Q: Ma3. What are the benefits and limitations of ABC? Please answer according to the structure…
A: Activity-based costing (ABC) is a method of assigning costs to products or services based on the…
Q: ,700 for the 10-year T-note cited in question 12. This 10-year T-note has exactly 10-years remaining…
A: Yield to Maturity - A fixed-rate investment, such as a bond, has a speculative rate of return or…
Q: et income on the income statement does not e in stockholders' equity from one period to a e in…
A: The statement of cashflow shows the inflow and outflow of cash transactions.
Q: Prepare a tabular analysis which shows the effects of these transactions on the expanded accounting…
A: Answer:- Expanded accounting equation:- The owner's equity various components, including dividends,…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is 9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per subassembly. 3. Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. What happens to product cost if the time to produce a unit is decreased to 25 minutes? How can a firm encourage managers to reduce cycle time? Finally, discuss how this approach to assigning conversion cost can improve delivery time. 4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. How much non-value-added time is being used? How much is it costing per unit? 5. Cycle time, velocity, MCE, conversion cost per unit (theoretical conversion rate actual conversion time), and non-value-added costs are all measures of performance for the cell process. Discuss the incentives provided by these measures.
- Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of 1,350 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of 900 per unit. a. If a transfer price of 1,000 per unit is established and 75,000 units of materials are transferred, with no reduction in the Components Divisions current sales, how much would Ziegler Inc.s total operating income increase? b. How much would the Instrument Divisions operating income increase? c. How much would the Components Divisions operating income increase?Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Emerald Island Company is considering building a manufacturing plant in County Kerry. Predicting sales of 100,000 units, Emerald Isle estimates the following expenses: An Irish firm that specializes in marketing will be engaged to sell the manufactured product and will receive a commission of 10% of the sales price. None of the U.S. home office expense will be allocated to the Irish facility. Required: 1. If the unit sales price is 2, how many units must be sold to break even? (Hint: First compute the variable cost per unit.) 2. Calculate the margin of safety ratio. 3. Calculate the contribution margin ratio.
- Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 36,000 parts is $ 100,000, which includes fixed costs of $ 40,000 and variable costs of $ 60,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $ 15,000. If Voltaic outsources, what will be the effect on operating income?A. decrease of $11,000B. increase of $ 11,000C. increase of $ 15,000D . decrease of $ 8,000Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 45,000 parts is $105,000.00, which includes fixed costs of $50,000.00 and variable costs of $55,000.00. The company can buy the part from an outside supplier for $1.00 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $17,000.00. If Voltaic outsources, what will be the effect on operating income? OA. decrease of $37,000.00 B. increase of $37,000.00 C. increase of $17,000.00 OD. decrease of $10,000.00 ...Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's Electronics Division can produce the transistors for a cost of $4.00 each, and it has plenty of capacity to manufacture the units. The $4.00 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs. The range of a possible transfer price should be a. $3.26 to $3.99 b. $3.51 to $3.99 c. $3.26 to $3.49 d. $3.25 to $3.50
- Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 36,000 parts is $110,000, which includes fixed costs of $50,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Voltaic outsources, what will be the effect on operating income?Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 35,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Voltaic outsources, what will be the effect on operating income? A. increase of $11,000 B. decrease of $11,000 C. decrease of $10,000 D. increase of $16,000Office Tech Inc. is currently purchasing a standard part for $30 per unit which is used for manufacturing different types of devices. The company is operating at 80% capacity and can make the part at a cost of $40 per unit which include an allocated fixed cost per unit of $8. If the company decide to use the idle manufacturing space to produce 30,000 units of parts, what would be the amount of increase or decrease in differential costs from making the part rather than purchasing? Group of answer choices Cost would be increased by $60,000 Cost would be increased by $300,000 Cost would be decreased by $60,000 Cost would be decreased by $300,000