Last month when Holiday Creations, Incorporated, sold 45,000 units, its sales, variable expenses, and fixed expenses were $180,000, $153,000, and $39,300, respectively. Required: What is the company’s contribution margin (CM) ratio? What is the company’s variable expense ratio? Note: Do not round intermediate calculations. Mauro Products sells a woven basket for $17 per … Read more
The contribution margin ratio equals: The variable expense ratio equals: Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 58,000 Net operating income $ 129,500 The unit sales to break-even is: Assume the … Read more
Week 4: Cost Volume Profit (CVP) Analysis Questions for Week #4: Cost-Volume-Profit Analysis Based on your eBook readings and review of both the lesson and Becker content, discuss the basic assumptions of CVP analysis and how we can use CVP analysis in making decisions as managers. “Break-even analysis is of limited use to management because … Read more
Required information Skip to question [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company’s activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 29,200 4,000 direct labor-hours Machine-related $ 7,000 7,000 machine-hours Machine … Read more
An activity cost pool is: A company produces numerous blends of coffee, two of which are known as the Irish Blend and the Columbian Blend. The company’s ABC system divides its total manufacturing overhead of $1,982,500 into four activity cost pools as shown below. Activity Activity Measure Expected Activity Estimated Cost Purchasing Purchase orders 1,500 … Read more
Week 3: Process Costing System/Activity Based Costing System 1) Identify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice? 2) How is process costing similar and different in a second or later … Read more
Taveras Corporation currently operates at 50% of its available manufacturing capacity. It uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 180,000 Fixed manufacturing overhead cost $ 2,520,000 Variable manufacturing overhead cost per machine-hour … Read more
A document that lists the quantity of each type of direct material needed to complete a unit of product is called a A predetermined overhead rate includes: A unit product cost includes: 4. Assume the following: Estimated fixed manufacturing overhead for the coming period of $211,000 Estimated variable manufacturing overhead of $2.00 per … Read more
Week 2: Job-Order Costing Systems What is Job-Order Costing, and how is it similar and different from Process Costing? Additional Questions for Week #2: Basic Understanding & Application: What is a job order costing system, and what types of businesses would typically benefit from using this system? Explain the key documents used in a … Read more
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs the company incurs. Required: For each cost, indicate whether it would … Read more