Q: Rooney Training Services (RTS) provides instruction on the use of computer software for the…
A: CVP Analysis refers to cost-volume-profit analysis which represents the effect of a change in volume…
Q: Smith lost the transfer opportunity to a better qualified candidate. Robert Trent was shocked when…
A: 1.Trent must thin he was written a very good appraisal for Jane Smith which was based on the false…
Q: A company currently using an inspection process in its material receiving department is trying to…
A: Solution: The number of expected rejection
Q: John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests…
A: Actual rate per material= 69560/18500=$ 3.76 Actual rate per direct labor hour= 30105/2700=$ 11.15…
Q: You are a trainee accountant in your second year of training within a small practice. A more senior…
A: The Professional behavior at work place plays a very important role. It is a form of etiquette at…
Q: John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests…
A: Material Price Variance states in two forms, one is related to the direct materials and other is…
Q: Heidt Cleaning Services (HCS) is a local custodial service company serving both the residential and…
A: Overhead cost refers to the cost incurred for operating the business activities in an ongoing…
Q: Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental…
A: SOLUTION- 1-MATERIAL PRICE VARIANCE= =STANDARD COST FOR ACTUAL UNITS - ACTUAL COST =($1 *2940 TUBES)…
Q: incurs a cost
A: Breakeven point calculation is essential to arrive at the no-profit-no-loss situation. It lets you…
Q: John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests…
A: Material Price variance Actual cost of material Less Standard cost of material =53,040 - 17000*3.25…
Q: Terri Ronsin had recently been transferred to the House Security Division of National Home products.…
A: Manufacturing Overheads are the various indirect material, labour and other costs incurred during a…
Q: Best Practices, Inc., is a management consulting firm. Its Corporate Division advises private firms…
A: please like then answer your response matters 1) If the corporate division is operating at…
Q: The manager at Screaming Trees has been trying to calculate the portion of the company's overhead…
A: Variable Cost: Variable cost refers to the costs that change due to the changes occurring in the…
Q: nd Prize ental Clinic provides both preventive and orthodontic dental services. The two owners,…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Hardyke Group operates a local after-school recreation and activities program. The Education…
A: Assigning costs to cost items, which often comprise a corporation's goods, services, and other…
Q: Betty is a Human Resource Associate for a small factory, and management asked her department to…
A: To solve this problem of determining the average hourly wage for the current year and the previous…
Q: Charted Travel & Tours (CTT) is studying whether to outsource its human resources (HR) activities.…
A: This question deals with the concept of decision making. In decision making, management always try…
Q: Boyne University offers an extensive continuing education program in many cities throughout the…
A: The variance is the difference between the actual and standard production data. The spending…
Q: Lisa Ronsin had recently been transferred to the Home Security Systems Division of National Home…
A: 6. Lisa can rework the calculations and try to make her senior understand that the agreement adopted…
Q: Hardyke Group operates a local after-school recreation and activities program. The Education…
A: Assigning costs to cost items, which often comprise a corporation's goods, services, and other…
Q: Do-Over Incorporated recently obtained a short-term bank loan from City National Bank. The bank…
A: Mixed cost problems are solved using the High -Low-cost method. Variable and fixed costs are…
Q: Pace Labs. Inc. provides mad cow disease testing for both state and federal governmental,…
A: Total overhead variance refers to the difference between the total overhead applied and actual…
Q: Monica Lee, Administrative Director of Digital Imaging Center, has been asked by the practice…
A: This question is regarding calculation of desired patients in a month which is required to cover…
Q: John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests…
A: Variance refers to the discrepancy in the actual and the estimated results that the organization…
Q: Sanchez Trucking has been experiencing delays at its warehouse operations. Management hired a…
A: 1. total hours per crew = no of members in a crew x full time hours per member 2. required crews =…
Q: Ron Moss, a manager of Waterworks Inc., was reviewing the water bills of a dog daycare and spa. He…
A: Variable cost means the cost which vary with the level of output where as fixed cost remains fixed…
Q: eldt Cleaning Services (HCS) is a local stodi service company serving both the resi considering…
A: Activity Based Costing (ABC Costing)Under the ABC Costing overheads are allocated on the basis of…
Q: The service department at Major Motors sold $48,000 in service last month. They had direct labor…
A: The net income is calculated as difference between revenue and expenses. The income statement is one…
Q: VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional…
A: Current Price: $376 New Price: $333 Costs in next year: $255.21*108% = $275.62
Q: The Barberton Municipal division of Road Maintenance is charged with road repair in the city of…
A: All cost are in dollar ($).
Q: John Smith, a junior accountant at Dynamics Engineering was working on cost allocations to completed…
A: Dynamics Engineering Costing ProceduresThe scenario describes a job order costing system where…
Q: Hammatt Inc. provides a variety of services for commercial clients. Hammatt destroys any paper…
A: The operating overheads are the indirect costs incurred for operating activities. The forecasting of…
A clinic at unniversity is run as a profit center. The dean of student services was reviewing the expenses on last month's financial report for the clinic, which also treated non-students on a fee-forservice basis. During the month the buildings furnace needed to be replaced, and the non-student department of the clinic was charged $400 for its share in addition to its normal fixed
Step by step
Solved in 2 steps with 2 images
- Louis Clark, the new administrator for the surgical clinic, was trying to figure out how to allocate is indirect expenses. His staff were complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities expense based on square footage of each department, to allocate administration expense based on direct costs, and to allocate laboratory expense based on tests. Using the information in Exhibit 12.11 below, calculate the total indirect costs (utilities, administration, and laboratory) allocated to the Day-Op Suite; Cystoscopy; and Endoscopy. Exhibit 12-11 A B C Square Feet Dept. Costs Lab Tests Utilities $400,000 Administration 4,000 $700,000 Laboratory 2,000 $750,000 Day-Op suite…Cassidy Manning is the assistant controller at LeMar Packaging, Inc., a manufacturer of cardboard boxes and other packaging materials. Manning has just returned from a packaging industry conference on activity-based costing. She realizes that ABC may help LeMar meet its goal of reducing costs by 5% over each of the next three years. LeMar Packaging’s Order Department is a likely candidate for ABC. While orders are entered into a computer that updates the accounting records, clerks manually check customers’ credit history and hand-deliver orders to shipping. This process occurs whether the sales order is for a dozen specialty boxes worth $80 or 10,000 basic boxes worth $8,000. Manning believes that identifying the cost of processing a sales order would justify (1) further computerization of the order process and (2) changing the way the company processes small orders. However, the significant cost savings would arise from the elimination of two positions in the Order Department. The…Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable, while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information. The controller decided that a good summer project for the intern would be to develop, in one self-contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were: Cost Pools Costs Activity Drivers Receiving $ 600,000 Direct material cost Manufacturing 5,500,000 Machine-hours Machine setup 900,000 Production runs Shipping 1,000,000 Units shipped…
- DhapaFrank Weston, supervisor of the Freemont Corporation's Machining Department, was upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Machine-hours Direct labor wages Supplies Maintenance Utilities Freemont Corporation-Machining Department Cost Control Report For the Month Ended June 30 Supervision Depreciation Total Actual Results Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total 42,000 $ 81,800 25,300 24,300 22,000 49,000 49,000 83,000 83,000 $ 285,400 $ 276,800 Planning Budget 40,000 $ 79,600 23, 200 Actual Results "I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know my department worked more efficiently last month than ever before. Instead, he tore me apart. I thought for a minute it…Can you please check my
- The manager of the Fleet division of Potlatch Automotive is evaluated on her division’s return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The Fleet division’s operating margin for the year was $9,336,000, during which time its average invested capital was $62,675,000. Required: a. Compute the Fleet division’s return on investment and residual income. b. Will the manager of the Fleet division receive a bonus for her performance? If so, how much will it be? c. In reporting her investment center’s performance for the past 10 years, the manager of the Fleet division accounted for the depreciation of her division’s assets by using an accelerated depreciation method allowed for tax purposes. As a…Paul Howard, the new plant manager of Garden Scapes Manufacturing Plant Number 7, has just reviewed a draft of his year-end financial statements. Howard receives a year-end bonus of 11.5% of the plant’s operating income before tax. The year-end income statement provided by the plant’s controller was disappointing to say the least. After reviewing the numbers, Howard demanded that his controller go back and “work the numbers” again. Howard insisted that if he didn’t see a better operating income number the next time around he would be forced to look for a new controller. Garden Scapes Manufacturing classifies all costs directly related to the manufacturing of its product as product costs. These costs are inventoried and later expensed as costs of goods sold when the product is sold. All other expenses, including finished-goods warehousing costs of $3,640,000, are classified as period expenses. Howard had suggested that warehousing costs be included as product costs because they are…Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company’s customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $2.92 Direct labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,475 tests were conducted, resulted in the following. Direct materials (3,050 test tubes) $4,270 Direct labor (1,550 hours) 35,650 Variable overhead 7,400 Fixed overhead 15,000 Monthly budgeted fixed overhead is…
- VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate (PMPM) is determined by estimating the health care cost per enrollee within a geographic location. The average health care coverage in North Carolina costs $364 per month, which is the same amount irrespective of the subscriber’s age. Because individuals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $321. VIP-MD wants to maintain its current market penetration and hopes to increase its enrollees in the current year. The latest data on the number of enrollees and the associated costs follow: Age Enrollment in…The Vest School of Vocational Technology has organized the school training programs into three departments. Each department provides training in a different area as follows: nursing assistant, dental hygiene, and office technology. The school's owner, Candice Vest, wants to know how much it cost to operate each of the three departments. To accumulate the total cost for each department, the accountant has identified several indirect costs that must be allocated to each. These costs are $10,080 of telephone expense, $2,016 of supplies expense, $720,000 of office rent, $144,000 of janitorial services, and $150,000 of salary paid to the dean of students. To provide a reasonably accurate allocation of costs, the accountant has identified several possible cost drivers. These drivers and their association with each department follow. Cost Driver Department 1 Department 2 Department 3 Number of telephone 28 16 19 Number of faculty members 20 16 12 Square footage of office space 28,000 16,800…Solve the following problem: The service department at Major Motors sold $48,000 in service last month. They had direct labor costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What was Major Motors net profit?
