A-6 Budgeted salesBatch sizeSetupsPurchase order sizeRoasting timeBlending timePackaging timeActivityPurchasingMaterials handlingQuality controlRoastingBlendingPackagingCoffee Bean has total practical capacity as noted in the table below, l.e. processing 1,680 purchase orders, 2,680 setups, etc. Theseare the levels of activity work that are sustainable.Mona Loa100,000 pounds10,000 pounds3 per batch25,000 pounds1 hour per 100 pounds8.5 hour per 100 pounds8.1 hour per 100 poundsPurchasingMaterials handlingQuality controlRoastingBlendingPackagingPracticalCapacity1,6802,6001,488102,00038,80032,800Required:L Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %* and"Practical Capactity Rate" to 2 decimal places. For percentages 1234 = 12.34%)Budgeted Budgeted CostActivity1,298 $ 649,0001,940 $776,000BGO $ 172,000Malaysian2,000 pounds500 pounds3 per batchsee pounds1 hour per 100 pounds8.5 hour per 100 pounds0.1 hour per 100 pounds97,500 $35,000 $27,400 $$975,000350,000274,0003,106,000Usage BasedRatePracticalCapacity atCurrentSpending1,6802,6801,480102,80038,80032,800Usage %PracticalCapacity RateUnusedCapacityIdle CapacityCost$ Coffee Bean Incorporated (CBI) processes and distributes high-quality coffee. CBI buys coffee beans from around the world androasts, blends, and packages them for resale. Currently, the firm offers 2 coffees to gourmet shops in 1-pound bags. The major cost isdirect materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packingprocess. The company uses relatively little direct labor.CBI prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices are significantly higher thanthe market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious aswell.Data for the current budget include factory overhead of $3,196,000, which has been allocated on the basis of each product's directabor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchase and useof direct materials (mostly coffee beans).The budgeted direct costs for 1-pound bags are as follows:Direct materialsDirect laborMona Loa$4.208.30CBI's controller, Mona Clin, believes that its current product costing system could be providing misleading cost information. She hasdeveloped this analysis of the current year's budgeted factory overhead costs:ActivityPurchasingMaterials handlingQuality controlRoastingBlendingPackagingTotal factory overhead costMalaysian$ 3.280.30Budgeted salesBatch sizeCost DriverPurchase ordersSetupsBatchesRoasting hoursBlending hoursPackaging hoursBudgetedDriverConsumption1,2001,940Mona Loa100,000 pounds10.008 nounds86897,50035,00027,400Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning or ending directmaterials inventory for either of these coffees.Budgeted Cost$ 649,000776,000172,000975,000350,000274,000$3,196,000Malaysian2,000 pounds500 ods

Coffee Bean Incorporated (CBI) has two coffee products - Mona Loa and MalaysianCBI’s controller,…

Budgeted sales Batch size Setups Purchase order size Roasting tine Blending time Packaging time Activity Purchasing Materials handling Quality control Roasting Blending Packaging Coffee Bean has total practical capacity as noted in the table below, Le processing 1680 purchase orders, 2,680 setups, etc. These are the levels of activity work that are sustainable Mona Loa 100,000 pounds 10,000 pounds 3 per batch 25,000 pounds 1 hour per 100 pounds 9.5 hour per 100 pounds 8.1 hour per 100 pounds Purchasing Quality control Rowling Bending Practical Capacity 1,600 2,500 1.400 102,000 38,000 32,000 Required: 1 Determine the activity rates based on practical capacity and the cost of ide capacity for each activity (Round "Usage Sand Practical Capactity Rate" to 2 decimal places. For percentages 1234-12.34%) Budgeted Cost 1.29 $ 649.000 1,940 $ 2,000 pounds see pounds 3 per batch see pounds 1 hour per 100 pounds 8.5 hour per 100 pounds 0.1 hour per 100 pounds 776.000 172.000 975.000 000 $ $7,500 $ 35.000 $ 27,400 S 274,000 $3.106.000 Usage Based Capaci Spending 1,480 2,480 1,400 100,000 Practical Capacity Rate de Capacity Cost $

Budgeted sales Batch size Setups Purchase order size Roasting tine Blending time Packaging time Activity Purchasing Materials handling Quality control Roasting Blending Packaging Coffee Bean has total practical capacity as noted in the table below, Le processing 1680 purchase orders, 2,680 setups, etc. These are the levels of activity work that are sustainable Mona Loa 100,000 pounds 10,000 pounds 3 per batch 25,000 pounds 1 hour per 100 pounds 9.5 hour per 100 pounds 8.1 hour per 100 pounds Purchasing Quality control Rowling Bending Practical Capacity 1,600 2,500 1.400 102,000 38,000 32,000 Required: 1 Determine the activity rates based on practical capacity and the cost of ide capacity for each activity (Round "Usage Sand Practical Capactity Rate" to 2 decimal places. For percentages 1234-12.34%) Budgeted Cost 1.29 $ 649.000 1,940 $ 2,000 pounds see pounds 3 per batch see pounds 1 hour per 100 pounds 8.5 hour per 100 pounds 0.1 hour per 100 pounds 776.000 172.000 975.000 000 $ $7,500 $ 35.000 $ 27,400 S 274,000 $3.106.000 Usage Based Capaci Spending 1,480 2,480 1,400 100,000 Practical Capacity Rate de Capacity Cost $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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G http... hapter Review i My... Budgeted sales in units (a) Expected sales price (b) I Variable costs per unit (c) Income statements Sales revenue (a x b) Variable costs (a x c) Contribution margin Fixed costs Net income Req A Tra... Margin of safety Req B Man..... Jordan Company is considering the addition of a new product to its cosmetics line. The company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. Relevant information and budgeted annual income statements for each of the products follow. Skin Cream Req C1 Relevant Information Skin Cream Bath Oil 120,000 200,000 $9 $2 $1,080,000 % M Questio... Complete this question by entering your answers in the tabs below. $1,200,000 $1,040,000 (240,000) (600,000) (640,000) 840,000 600,000 400,000 (609,000) (435,000) (120,000) $231,000 $165,000 $280,000 Required: a. Determine the margin of safety as a percentage for each product. b. Prepare revised income statements for each product, assuming a 20…
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Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $121,100, and 17,300 orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity.$ per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 9,900 sales orders.$
Computing breakeven sales and sales needed to earn a target profit; graphing CVP relationships; performing sensitivity analysis National Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,100), depreciation on office furniture ($1,700), utilities ($2,000), special telephone lines ($1,500), a connection with an online brokerage service ($2,500), and the salary of a financial planner ($5,200). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Requirements Use the contribution margin ratio approach to compute Nationals breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for National, how many trades must be made to break even? Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600.…
Dashboard CengageNOWv2| Online teachin x https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres. Chapter 22 еBook Show Me How Production Budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Gym Scale Scale Northern Region unit sales 40,000 25,000 Southern Region unit sales 75,000 35,000 Total 115,000 60,000 The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,800 and 8,100 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 15,000 and 7,500 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Healthy Measures Inc. Production Budget For the Month Ending March 31 Units Bath…
ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
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