(a) Classify each of the three divisions of Blakefield, Inc. as a cost center, a profit center, or an investment center. OlliePods Polyspreen Monk Recreation V (b) What type of responsibility center is the corporate headquarters group?
Q: Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost.…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: Babuca Corporation has provided the following production and total cost data for two levels of…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…
Q: Culver Corporation manufactures mountain bikes. It has fixed costs of $4,802,400. Culver's sales mix…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Which of the following taxpayers is required to file a 2023 federal income tax return? Mateo (48)…
A: Some of the threshold are as follows :Filing status Taxpayers ageA taxpayer must file a return if…
Q: * Your answer is incorrect. Compute the depreciation for this asset for 2022 and 2023 using the…
A: The sum of year's digits approach is a finance and accounting strategy for allocating an asset's…
Q: "I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings…
A: Hi studentSince there are multiple subparts asked, we will answer only first three…
Q: Bridge City Consulting bought a building and the land on which it is located for $125,000 cash. The…
A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…
Q: 5 CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: The following information for the past year is available from Gas Company, a company that uses…
A: The variance is the difference between the standard and actual cost data production. Variable…
Q: Sacramento Memorial Hospital has the following financial data and operational metrics: Number of…
A: Before calculation of hospital’s occupancy rate wr have to calculate total number of inpatient days…
Q: We originally bought 200 marbles for $8000 total. We then sold 135 marbles for $100 each on account.…
A: Accounting equation is one of fundamental concept being used in accounting. As per this, total…
Q: Sanjeev enters into a contract offering variable consideration. The contract pays him $2, 200/month…
A: Variable consideration can be estimated under either of the below method a) The expected value…
Q: andhill Woodcrafters sells $648,000 of receivables with a fair value of $661,300 to Sand eets the…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Purchase Corporation purchased 60 percent of Steal Company ownership on January 1, 20X7, for…
A: The company can invest in another company. The entities generally make investments in another…
Q: North Country Wood Toys makes wooden toys for children of all ages. They use two departments:…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: James's House of Music wants to purchase Transposelt, a system that transposes any song in its…
A: The accounting rate of return shows the return on initial investment in terms of accounting income.…
Q: Ivanhoe Corporation owned a manufacturing facility. Ivanhoe had purchased the building for $9, 960,…
A: This is the case of sale and lease back and also it is Finance lease as the present value of lease…
Q: Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to…
A: Answer:- The departmental overhead rate is calculated as estimated overhead costs divided by…
Q: The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August,…
A: The cost of production report is prepared to determine the equivalent units, cost of completed…
Q: Sandhill Ltd. has an executive stock option plan, details of which follow: The plan entitles the CEO…
A: A stock option plan is a program that allows employees of a company to purchase shares of the…
Q: The information that follows relates to equipment owned by Sweet Acacia Limited at December 31,…
A: The reduction in the carrying value of an asset to its fair value is referred to as impairment. This…
Q: Eagle's assets are proportional to its sales. Income Statement Sales Costs Pretax income Taxes (at…
A: The amount of debt accumulated over time offers information about an entity's capacity to handle…
Q: You have just been hired as a new management trainee by Earrings Unlimited, a distributor of…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Which dependent must file a 20
A: Single dependents—Were you either age 65 or older or blind?□No. You must file a return if any of the…
Q: 5% bonds payable, $5,774,000 maturing December 31, 2025, each $1,000 bond convertible into 20 common…
A: Companies can draw in investors with dividends on preferred shares by providing a steady income…
Q: AP5-9B (Preparation of statement of cash flows) Marchant Ltd. reported the following abbreviated…
A: The cash flow statement is prepared using either the indirect method or the direct method. The cash…
Q: Heintz Products uses activity-based costing to account for product costs. The plant manager has…
A: Activity-based product costing seeks to offer a more accurate and comprehensive view of cost…
Q: = ($306,000 - $ 25,000) * 5 (30*12) How to calculate this equation, is an equation for depreciation…
A: Depreciation is an accounting technique that provides a more realistic picture of an asset's worth…
Q: One subunit of Speed Sports Manufacturing Company had the following financial results last month:…
A: Variances can occur in anything you forecast, but they are common in budgeting. By changing the…
Q: Jackson
A: For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs…
Q: Sofie Manufacturers produces decorative pillows and sells them at $98 per unit. In the first month…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: Required: Calculate the following ratios for Yum! Brands in 2019 and 2018. (Negative amounts should…
A: Ratio analysis is one of useful technique of management accounting. Under this, various calculations…
Q: Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions:…
A: Economic value added (EVA) is a metric for a company's financial performance. It is the surplus…
Q: A 1 Chapter 13: Applying Excel 2 3 Data 4 Exhibit 13-5 Santa Maria Wool Cooperative 5 Cost of wool 6…
A: An incremental analysis or differential analysis is prepared to determine the financial advantages…
Q: Colonial Corporation uses the retail method to value its inventory. The following information is…
A: Cost-to retail-ratioThe cost-to-retail ratio is the ratio that compares the cost price of the goods…
Q: PIM Industries Incorporated manufactures electronics components. Each unit costs $45 before the…
A: Relevant costs means those costs which can change decisions to be made in business. These costs can…
Q: Special Deductions and Limitations (LO 11.3) Katsura Corporation incurred pre-operating costs: •…
A: Itemized deductions are expenses that taxpayers can subtract from their adjusted gross income (AGI)…
Q: Pricing: The meteor model retails for 840€, and Moonlight Model retails for 1485€ The company…
A: Part-1The Plant wide overhead rate is the overhead rate that companies use to allocate their entire…
Q: Internal Rate of Return Lepton Industries has three potential projects, all with an initial cost of…
A: The Internal Rate of Return (IRR) is a financial metric that calculates the discount rate at which…
Q: Aviles Corporation engaged in the following transactions during June. DATE. TRANSACTIONS June 4,…
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Q: Required information [The following information applies to the questions displayed below.] Carl…
A: Depreciation Accounting method wherein the cost of a tangible asset is spread over the asset's…
Q: The directors of Rexking Co. Ltd are also concerned on the way the company is being managed. They…
A: The fundamental managerial functions, often referred to as the management process, are a set of…
Q: Carl purchased an apartment complex for $3.5 million on March 17 of year 1. of the purchase price,…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: Rush Co has a credit
A: Accounting errors may be minor or substantial. Either way, they can have serious consequences:…
Q: James's House of Music wants to purchase Transposelt, a system that transposes any song in its…
A: Net income, also known as net earnings or the “bottom line”, is the amount an individual or business…
Q: n January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of…
A: The company's financial performance over a specific time period is explained in the income…
Q: Halicon Ltd. applies the lower of cost or NRV valuation to inventory. The company's inventory at the…
A: "Realizable value" means the maximum price at which an item may be sold in the market. It stands for…
Q: XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed…
A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…
Q: Ivanhoe Desalination Ltd. needed to raise $165,000,000 of additional capital to finance the design,…
A:
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…
- Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames…Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in itstwo divisions: the PSF Division and the Components Division. The Components Division produces electronic components that can be used by the PSF Division. All the components thisdivision produces can be sold to outside customers. However, from the beginning, nearly allof its output has been used internally. The current policy requires that all internal transfers ofcomponents be transferred at full cost.Recently, Cam DeVonn, the chief executive officer of Lansing Electronics, decided to investigate the transfer pricing policy. He was concerned that the current method of pricing internaltransfers might force decisions by divisional managers that would be suboptimal for the firm. Aspart of his inquiry, he gathered some information concerning Component Y34, which is usedby the PSF Division in its production of a basic scanner, Model SC67.The PSF Division sells 40,000 units of Model SC67 each year…
- Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company’s X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard: Dave: I hear you are having problems selling semiconductors out of your division. Maybe I can help. Howard: You’ve got that right. We’re producing and selling at about 90% of our capacity to outsiders. Last year, we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part of the same company. Dave: What kind of price could you give…Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company's X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard: Dave: I hear you are having problems selling semiconductors out of your division. Maybe I can help. Howard: You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of the excess capacity? After all, we are part of the same company. Dave: What kind of price can you give me?…Production of sofas at the Cosyhome factory depends on two highly autonomous divisions within the firm. The Woodie division is responsible for manufacturing the wooden chair frame and the Softie division produces the fabric to cover the chairs. Cosyhome operates in a very seasonal and highly competitive market and therefore is keen to implement improvements to its products. One such improvement is a revolutionary new nylon fabric. The Softie division has been asked by the Woodie division to produce the fabric for 4,000 chairs. If Softie meets this request, it will have to reduce output of its existing fabric which it currently sells to firms outside Cosyhome at £15 per metre. This is also the price Woodie must pay for any material purchased from Softie. No external market is expected to be available for the highly specialised nylon fabric. Woodie anticipates that chairs made with the new material will be sold for £23.90 more than at present. Market resistance to higher prices will…
- Soft Cushion Company is highly decentralized. Each division is empowered to make its own sales decisions. The Assembly Division can purchase stuffing, a key component, from the Production Division or from external suppliers. The Production Division has been the major supplier of stuffing in recent years. The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $26per pound for the next year. The Production Division recently increased its unit price to $54.The manager of the Production Division presented the following information — variable cost $38 and fixed cost $14 — to top management in order to attempt to force the Assembly Division to purchase the stuffing internally. The Assembly Division purchases 21,000 pounds of stuffing per month. What would be the monthly operating advantage (disadvantage) of purchasing the goods internally, assuming the external supplier increased its price to $88 per pound and the Production Division…Bostonian Inc. has a number of divisions, including the Delta Division and the Listen Now Division. The Listen Now Division owns and operates a line of MP3 players. Each year, the Listen Now Division purchases component AZ in order to manufacture the MP3 players. Currently, it purchases this component from an outside supplier for $6.50 per component. The manager of the Delta Division has approached the manager of the Listen Now Division about selling component AZ to the Listen Now Division. The full product cost of component AZ is $3.10. The Delta Division can sell all of the component AZs it makes to outside companies for $6.50. The Listen Now Division needs 18,000 component AZs per year; the Delta Division can make up to 60,000 components per year. Required: A. Which division sets the maximum transfer price? Which division sets the minimum transfer price? Maximum Minimum B. Suppose the company policy is that all transfer take place at full cost. What is the transfer…Simon Forest Corporation operates two divisions, the Timber Division and the Consumer Division. The Timber Division manufactures and sells logs to paper manufacturers. The Consumer Division operates retail lumber mills which sell a variety of products in the do-it-yourself homeowner market. The company is considering disposing of the Consumer Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended December 31, 2002 are presented below: Timber Division Consumer Division Total Sales P1,500,000 P500,000 P2,000,000 Cost of goods sold 900,000 350.000 1.250.000 Gross profit Selling & admin expenses 600,000 150,000 750,000 250,000 180,000 430,000 Net income P 350,000 P(30,000) P 320,000 In the Consumer Division, 70% of the cost of goods sold are variable costs and 30% of selling and administrative expenses are variable costs. The management of the company feels it can save P60,000 of fixed cost of goods sold…