The following fixed costs pertain to the segment Bell Corporation is considering the elimination of oneof its segments. The following fixed costs pertain tothe segment. If the segment is eliminated,building it uses will be sold.EXPENSE/COSTANNUAL ADVERTISING EXPENSEMARKET VALUE OF THE BUILDINGANNUAL MAINTENANCE COST ON EQUIPMENTANNUAL REAL ESTATE TAXES ON THE BUILDINGANNUAL SUPERVISORY SALARIEStheAMOUNT$165,000$40,000$30,000$9,500$85,000ANNUAL ALLOCATION OF COMPANYWIDE FACILITY COST $35,000ORIGINAL COST OF THE BUILDINGCURRENT BOOK VALUE OF THE BUILDING$80,000$60,000Required:Based on this information, determine the amount ofavoidable costs associated with the segment.

Concept of Avoidable Costs:Avoidable costs are expenses that can be eliminated if a segment,…

Answered: Bell Corporation is considering the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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Thornton Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. $ 85,000 165,000 53,000 Advertising expense Supervisory salaries Allocation of companywide facility-level costs Original cost of building Book value of building Market value of building Maintenance costs on equipment Real estate taxes on building 115,000 64,000 83,000 80,000 8,000 Required Determine the amount of avoidable cost associated with the segment. Avoidable cost
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Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)
Ouzts Corporation is considering Altemnative A and Alternative B. Costs associated with the alternatives are listed below: Alternative Alternative Materials costs Processing costs Equipment rental Occupancy costs $ 42,000 $ 38,600 $ 13,400 $ 15,100 $ 56,200 $ 38,600 $ 13,400 $ 22,600 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Multiple Cholce $109100 $21.700) $130.800 其其 69°F Mostly pe here to search DELL
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Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The cost information below relates to the product: Unit Costs Direct materials P 3.25 Direct labor 4.00 Distribution 0.75 The company will also be absorbing P120,000 of additional fixed costs associated with this new product. A corporate fixed charge of P20,000 currently absorbed by other products will be allocated to this new product. Bruell is subject to a tax rate of 30%. How many surge protectors (rounded to the nearest hundred) must Bruell Electronics sell at a selling price of P14 per unit to gain P30,000 additional income after taxes?
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Materials costs Processing costs Equipment rental Occupancy costs Alternative X $45,000 $49, 400 $18, 400 $17, 600 Multiple Choice What is the financial advantage (disadvantage) of Alternative Y over Alternative X? Show Transcribed Text $(144,800) $130,400 Alternative Y $65, 300 $49, 400 $18, 400 $26, 100 $159,200 $(28,800) G
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Part P40 is a part used in the production of dehumidifiers at Pollock Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually Fixed costs Variable costs Total cost to produce 25,000 $44,000 $68,000 $112,000 Pollock Corporation can purchase the part from an outside supplier for $4.55 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If the company buys the part, what is the most it can spend per unit so that operating income is equal to $97,000? (Round the final answer to the nearest cent.) A. $3.00 B. $3.88 OC. $2.12 D. $1.55

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