a. Crane Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs Selling price per pair of shoes Expected revenues, 2022 (50,700 units) Income tax rate Operating income before tax $ b. Calculate the break even points in units 2020 $183 $41 $9,278.100 22 $2,785,000 40% 20 545,000 725,000 $4,055,000 $83 Calculate the projected operating income before tax for 2022.

Michael Roberts is a cost accountant and business analyst for HP Clothing Company (HPCC). which manufactures expensive T-shirts. HPCC uses two direct cost categories: direct materials and direct manufacturing labor. It allocates manufacturing overhead to production based upon labor hours used. At the beginning of 2020, HPCC adopted the following standards for cach Tshirt: Input Direct materials Standard Quantity Standand Price Or Hour 3.1 kg Or Rate $9 kg Direct labor 2 hours S8 hour Variable overhead S5 hour 2 hours Actual results for April 2020 were as follows: Production Direct materials purchased Direct materials used Direct labor Variable manufacturing overhead $ 35,600 3,200 T-shirts 12,900 kg at S10 kg 9,000 kg 7,200 hours for $59,000 Required: a) Compute the standard variable product cost per unit. b) For the month of April 2020, compute the following variances, indicating whether each is favorable or unfavorable: i. Direct materials price variance, based on purchases ii.…

The managers of Sandusky Inc. have decided to use the month of January to determine the cost of producing their widget for the year. This will help determine proper product pricing and is important for control purposes. Using the data from January, the managers can determine the costs associated with material and labor. However, fixed indirect costs must still be determined. Management intends to use the prior year’s data to determine overhead costs. It is assumed that management will allocate an equal amount of estimated costs each month. Is this an appropriate decision by management? Should January be used as the reference point for the whole year?

PLANTWIDE, DEPARTMENT, AND ABC INDIRECT COST RATES. Roadster Company (RC) designs and produces automotive parts. In 2020, the actual variable manufacturing overhead is $280,000. RC's simple costing system allocates variable manufacturing overhead to its three customers based on machine hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so RC's controller Matthew Draper realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: 1 Home A Insert Page Layout Formulas B 2 Department 3 Design 4 Production 5 Engineering 6 Total Cost Driver CAD-design-hours Engineering-hours Machine-hours Data с Review Manufacturing Overhead in 2020 $ 35,000 25,000…

The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:   The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)   Question 12 options:   $3,266   $9,274   $8,243   $6,595

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y = a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service Variable maintenance cost 520 470 250 490 340 470 330 410 480 380 390 340 4,870 406 Maintenance Costs $ 5,305 4,170 2,740 4,280 3,050 4,160 3,040 3,570 3,990 3,230 3,170 3,120 $ 43,825 $ 3,652 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? Note: Round your answer to 2 decimal places. ********* per hour

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service 560 480 280 470 350 460 320 430 490 380 350 340 4,910 409 Maintenance cost Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 3,000 3,590 4,000 3,220 3,170 3,070 $ 43,580 $ 3,632 PR 6-38 (Algo) Part 3 Compute the predicted maintenance cost... 3. Compute the predicted maintenance cost at 670 hours of activity. Answer is complete but not entirely correct. $ 49,192 X

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service Variable maintenance cost 560 480 280 470 350 460 320 430 490 380 350 340 4,910 409 $ Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4, 120 PR 6-38 (Algo) Part 2 What is the variable component of the maintenance cost? 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? Note: Round your answer to 2 decimal places. 3,000 3,590…

Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Service 560 480 280 470 350 Monthly maintenance cost = 460 320 430 490 380 350 340 4,910 409 Maintenance Costs $ 5,110 4,240 2,730 4,300 3,030 4,120 3,000 3,590 4,000 3,220 3,170 3,070 $ 43,580 $ 3,632 PR 6-38 (Algo) Part 1 Estimate the behavior of the maintenance costs incurred... Required: 1. Using the high-low method of cost estimation, estimate the behavior of the maintenance…

In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025: Eason Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2025, Eason's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. E (Click the icon to view the expected information.) Because of limited machine hour capacity, Eason can produce either 2,000 standard rims or 2,000 deluxe rims. (Click the icon to view the 2024 indirect manufacturing costs per wheel rim.) Read the requirements. Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (lgnore selling and administrative expenses for this calculation.) Тext Use hodel. Data Table Data Table Delux Sal Standard Deluxe Indirect Manufacturing Cost Per Unit Dire Sales price…