Activity Measure Activity Cost Pool Cleaning carpets Travel to jobs Job Support Square feet cleaned (ees) Miles driven Number of jobs Activity for the Year 9,eee hundred square feet 150,500 miles 1,900 jobs other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $358,000 which includes the following costs: $ 148,000 32,000 16,000 27,000 Wages cleaning supplies Cleaning equipment depreciation vehicle expenses office expenses 56,000 President's compensation 79,000 Total cost $ 358,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets 70% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation 100% 75% 0% e% 0% Travel to Jobs 15% 0% 0% 80% 0% 0% Job Support other 15% e% 0% 0% 0% 0% 64% 30% 25% 20% 36% 70% Total 100% 100% 100% 100% 100% 100%

Activity Measure Activity Cost Pool Cleaning carpets Travel to jobs Job Support Square feet cleaned (ees) Miles driven Number of jobs Activity for the Year 9,eee hundred square feet 150,500 miles 1,900 jobs other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $358,000 which includes the following costs: $ 148,000 32,000 16,000 27,000 Wages cleaning supplies Cleaning equipment depreciation vehicle expenses office expenses 56,000 President's compensation 79,000 Total cost $ 358,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets 70% Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses office expenses President's compensation 100% 75% 0% e% 0% Travel to Jobs 15% 0% 0% 80% 0% 0% Job Support other 15% e% 0% 0% 0% 0% 64% 30% 25% 20% 36% 70% Total 100% 100% 100% 100% 100% 100%

Name: Gallatin Carpet Cleaning is a small, family-owned business operating
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company hasalways charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.90 per hundred square feet. Ho

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4. Contribution Income Statement Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Month Manufacturing overhead $36,000 Selling and administrative 68,000 $104,000 Manufacturing: Direct materials $25 Direct labor 15 Total Manufacturing overhead 5 $45 Selling and administrative 4 Total $49 Prepare a contribution income statement for July. Please enter the correct amount into the blank in yellow. Show your calculations. Picnic Time Contribution Income Statement For the Month of July Sales Less: variable costs: Direct materials Direct labor Manufacturing overhead Selling and administrative Contribution Margin Less: fixed costs: Manufacturing overhead Selling and administrative Profit
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units: Per Unit Per Year Direct materials $ 75 Direct labor $ 50 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 300,000 If the company’s absorption costing net operating income during its first year of operations was $63,000, what was its variable costing net operating income during its first year of operations? Multiple Choice $23,000 $103,000 $3,000 $123,000
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Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $153,000 $1,530,000 Direct labor hours 143,000 310,000 Machine hours 21,000 196,000 Production runs 40 60 Inspection hours 900 1,300 Maintenance hours 8,000 92,000 Overhead costs: Setup costs $300,000 Inspection costs 209,000 Machining 318,200 Maintenance 260,000 Total $1,087,200 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per run Inspections Inspection hours per hour Machining Machine hours per hour Maintenance Maintenance hours per hour Overhead assignment Model A Model B Setups Inspections Machining…
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Trio Company reports the following information for the current year, which is its first year of operations. Direct materials $ $ 11 per unit 18 per unit Direct labor Overhead costs for the year Variable overhead 3 per unit $ 150,000 per year Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 25,000 units 19,000 units 6,000 unitS 1. Compute the product cost per unit using absorption costing. Cost per unit of finished goods using: Absorption costing Cost per unit of finished goods 2. Determine the cost of ending finished goods inventory using absorption costing. Cost per unit of finished goods using: Absorption costing Number of units in finished goods Total cost of finished goods inventory 3. Determine the cost of goods sold using absorption costing. Cost per unit of goods sold using: Absorption costing Number of units in sold goods Total cost of sold goods
Deliveries to the retailers Sh.so 2,400,000 Set-up costs 6,000,000 Purchase order costs 3,600,000 Total overheads 12,000,000 All director labor is paid at $ 5 per hour. The company holds no inventories. Required: a. Calculate the total profit on each of General Motor's three types of products using each of the following methods: 1. The existing method based upon labor hours 2. Activity based costing
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Required information The Personnel Department at Hernandez Bros. is centralized and provides services to the two operating units: Miami and New York. The Miami unit is the original unit of the company and is well established. The New York unit is new, much like a start-up company. The costs of the Personnel Department are allocated to each unit based on the number of employees in order to determine unit profitability. The current rate is $610 per employee. Data for the fiscal year just ended show the following: Miami New York Number of employees 1,310 410 Number of new hires 11 31 Number of employees departing 19 19 Required: a. Compute the cost allocated to each unit using the current allocation system. b. Livan, the manager of the Miami unit, is unhappy with the allocation from Personnel. He believes that he gets little benefit other than the occasional hire and termination help. He asks the controller’s office to estimate the amount of Personnel Department…