Vulcan Flyovers offers scenic overflights of Mount Saint HeleHs, lne concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 Actual Flexible Budget 48 Results 48 Flights (q) Revenue ($320.e0q) Expenses: Wages and salaries ($4,0e0 + $82.00g) Fuel ($23.e0q) Airport fees ($650 + $38.0eq) Aircraft depreciation ($7.e0q) Office expenses ($190 + $2.00g) Total expense $ 13,650 $ 15,360 $ 16,000 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 8,100 1,150 2,550 350 286 290 12,136 $ 3,224 12,836 12,440 Net operating income $ 814 $ 3,560 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

Vulcan Flyovers offers scenic overflights of Mount Saint HeleHs, lne concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 Actual Flexible Budget 48 Results 48 Flights (q) Revenue ($320.e0q) Expenses: Wages and salaries ($4,0e0 + $82.00g) Fuel ($23.e0q) Airport fees ($650 + $38.0eq) Aircraft depreciation ($7.e0q) Office expenses ($190 + $2.00g) Total expense $ 13,650 $ 15,360 $ 16,000 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 8,100 1,150 2,550 350 286 290 12,136 $ 3,224 12,836 12,440 Net operating income $ 814 $ 3,560 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 ActualResults FlexibleBudget PlanningBudget Flights (q) 52 52 50 Revenue ($355.00q) $ 16,300 $ 18,460 $ 17,750 Expenses: Wages and salaries ($3,700 + $90.00q) 8,340 8,380 8,200 Fuel ($32.00q) 1,830 1,664 1,600 Airport fees ($810 + $30.00q) 2,250 2,370 2,310 Aircraft depreciation ($8.00q) 416 416 400 Office expenses ($230 + $1.00q) 450 282 280 Total expense 13,286 13,112 12,790 Net operating income $ 3,014 $ 5,348 $ 4,960 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget…
For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Budget Snowmobile $ 20,590 11,500 ATV $ 28,600 Snowmobile $ 20,520 Actual ATV $ 30,030 11,870 22,450 5,500 5,500 21,600 5,400 6,300 4,510 1,010 470 6,800 650 7,400 4,270 440 6,400 $ 49,270 $ 65,560 $ 49,000 1,070 610 7,400 $ 67,060 s Exercise 22-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Totals Controllable Costs Budgeted Actual Over (Under) Budget
int erences Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (q) Revenue ($360.00q) Expenses: Wages and salaries ($3,700+ $87.00q) Fuel ($33.00q) Airport fees ($890 +$34.009) Aircraft depreciation ($9.00q) Office expenses ($230 +$1.00q) Total expenses Net operating income Actual Results Flexible Budget 57 57 Planning Budget 55 $ 16,200 $ 20,520 $ 19,800 8,625 8,659 8,485 2,045 1,881 1,815 2,688 2,828 2,760 513 513 495 455 14,326 287 14,168 285 13,840 $ 1,874 $ 6,352 $ 5,960 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount. Required: 1. Prepare a flexible budget performance report for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Vulcan Flyovers Flights Revenue Expenses: Wages and salaries Actual Results 57 $ 16,200 8,625 Flexible…
extbook Sele Ex. 17, 19, 21, 22, 23 Prob. 30, 32 Calvert Associates prepares architectural drawings to conform to local structural-safety codes. Its income statement for 2013 is as follows: Revenues S701,250 Salaries of professional staff (7,500 hours S52 per hour) 390,000 Travel 15,000 Administrative and support costs 171,600 Total costs 576,600 Operating income S124,650 Following is the percentage of time spent by professional staff on various activities: Making calculations and preparing drawings for clients Checking calculations and drawings 77% 3 Correcting errors found in drawings (not billed to clients) Making changes in response to client requests (billed to clients) • Correcting own errors regarding building codes (not billed to clients) 8 7 Total 100% Assume administrative and support costs vary with professional-labor costs. Consider each requirement independently. Required: 1. How much of the total costs in 2013 are value-added, non-value-added, or in the gray area between?…
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Required Information [The following information applies to the questions displayed below] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,500 of raw materials on credit. b. Materials requisitions show the following materials used for the month. $ Job 201 a. b. C. Job 202 Total direct materials Indirect materials, Beginning Balance Total materials used Ending balance c. Time tickets show the following labor used for the month. Job 201 $ Job 202 Total direct labor Indirect labor 48,700 24, 100 72,800 9,120 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $165,260 on credit. $ 81,920 S Total labor used 77,500 g. Incurred the following actual other overhead costs for the month. Depreciation of factory $ 32,500 550 850 3,500 $ 37,400 39,700 13,100 52,800 24,700 Post entries for transactions a…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January . . . . . . . . 1,736 $4,127 February . . . . . . . 1,904 $4,207 March . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . 960 $2,857 May . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . 744 $2,696 July . . . . . . . . . . . 2,108 $4,670 August . . . . . . . . 2,406 $5,148 September . . . . . 840 $2,691 October . . . . . . . 124 $1,588 November . . . . . .…
services SQU Libraries SQU Portal Attendance English (en) ial Accounting || fall20 urses / ACCT2121_yasserg_fal|20 / Midterm Exam One_FALL2020 / Ex Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 250,000 hours. The estimated variable overhead is OMR13 per hour and the estimated fixed overhead costs are OMR750,000. Calculate the predetermined overhead rate. Select one: Oa. None of the answers given b. OMR3.00 Oc. OMRO.06 O d. OMR16.00 Oe. OMR15.00 Company XYZ produces computer laptops. During luly 2019 the 7019198page=2= ny produced 2.000 leptops The company ncurred
QuestionQ# 1: Accounting for Manufacturing Concern The following data from the just completed year are taken from the accounting records of KentonCompany:Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000Required:1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold.3. Prepare an income statement
The following represents the financial information for Plaza Plastics for May and June: June $636,000 Sales revenue Costs Scrap Process inspection Quality training Product testing equipment Field testing Warranty repairs Rework Preventive maintenance Legal expense for warranty claims Materials inspection Required A Required B Prevention May $ 843,000 % $ 2,160 3,040 23,940 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. June 5,340 8,580 3,540 Complete this question by entering your answers in the tabs below. % 19,940 16,380 7,980 11,460 Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June. Note: Round your percentage answers to 1 decimal place (i.e., .321 as 32.1). May $ 1,870 1,920 11,880 4,500 6,480 3,240 16,830 8,730 4,500 11,340
he Amano Hotel has accumulated records of the total electrical costs of the Hotel and the number of occupancy-days over the last year. An occupancy- day represents a room rented out for one day. The hotel's business is highly Seasonal, with peaks occurring during the ski season and in the summer. Month January. February.. March.. Electrical Costs Оссирапсу-Days 2,604 2,856 3,534 1,440 P6,257 P6,550 P7,986 P4,022 P2,289 P3,591 P7,264 P8,111 P3,707 P1,712 Р3,321 P5,196 April.. Мay. June.. 540 July. August... September. October.. 1,116 3,162 3,608 1,260 186 1,080 2,046 November. December....
Required information Skip to question [The following information applies to the questions displayed below.] Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $100,100 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 48,300 Job 202 23,700 Total direct materials 72,000 Indirect materials 8,720 Total materials used $ 80,720 Time tickets show the following labor used for the month. Job 201 $ 39,300 Job 202 12,700 Total direct labor 52,000 Indirect labor 24,300 Total labor used $ 76,300 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $164,060 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 32,100 Rent on factory building (payable) 510 Factory…