Car Kleen operates a car spa. Incoming cars are put on an automatic conveyor belt.Cars are washed as the conveyor belt carries the car from the start station to the finishstation. After the car moves off the conveyor belt, the car is dried manually. Workersthen clean and vacuum the inside of the car. Carl serviced 80,000 cars in 2013. Hereports the following costs for 2013:Car wash laborSoap, cloth, and suppliesP 90,00040,00024,000WaterElectric power to move conveyor beltDepreciation64,00070,000Salaries*150,00030,0005,000Office RentFlyers for ads* Salaries are composed of 60% operation and 40% administrativeRequired:1. Classify the following costs as to:a. Functionb. Timing of recognitionc. Traceabilityd. Behavior

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Answered: Car Kleen operates a car spa. Incoming…

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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Waterway has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 19,900 RecRobos is as follows: Cost Direct materials ($45 per robot) $895,500 Direct labor ($31 per robot) 616,900 Variable overhead ($8 per robot) 159,200 Allocated fixed overhead ($23 per robot) 457,700 Total $2,129,300 Waterway is approached by Cinrich Inc., which offers to make RecRobo for $83 per unit or $1,651,700. Using incremental analysis, determine whether Waterway should accept this offer under this following independent assumption: (see attachement). In attachement: see dropdown options. Please don't forget to answer: should the offer be accepted or not.
Garrett Toy Company incurred the following costs in April to produce job number TB78, which consisted of 1,000 teddy bears that can walk, talk, and play cards. Direct Material:4/1/20x0 Requisition number 101: 400 yards of fabric at $.80 per yard4/5/20x0 Requisition number 108: 500 cubic feet of stuffing at $.30 per cubic footDirect Labor:From employee time cards for 4/1/20x0 through 4/8/20x0: 500 hours at $12 per hourManufacturing Overhead:Applied on the basis of direct-labor hours at $2.00 per hour.On April 30, 700 of the bears were shipped to a local toy store.Required: Prepare a job-cost record using the information given above. (Use Exhibit 3–3 as a guide.)
Chipman Inc. produces water pumps. Overhead costs have been identified as follows: Activity Pool Material handling Cost $ 72,800.00 $144,000.00 $ 85,215.00 Machine maintenance Setups Activity Driver Activity 455 Number of moves Number of machine hours 36,000 Number of production runs 69 Chipman makes 3 models of pumps with the following details: Economy Standard Premium Units produced Number of moves 10,060 20,000 3,575 150 132 173 Machine hours 9,850 20,000 6,150 Production runs 31 10 28 Required: a. Calculate the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Pool Activity Rate Material Handling Machine Maintenance Setups b. Determine the amount of indirect costs assigned to each of the products. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) Models Cost Economy Standard Premium
Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $2.25) $4.50 Direct labor (2 hours @ $10) $20.00 Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50. What is Seaside's labor rate variance? a.$217,500 F b.$225,000 U c.$180,000 U d.$180,000 F
AbC Company is a Contracting Company that builds custom- made boats. It received from Marvelous Boating Company (MBC) an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the TW0 boats to be delivered in two months time:Direct Materials $ 1 80,000 Direct Labor $200,000 Manufacturing Overhead is applied at 150% of Direct Labor. How much is the Cost for each Job completed?
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 2.1 hours. On average, HHH completes about 21,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials $39,900 Direct labor 655,200 Variable overhead 21,000 Fixed overhead 25,200 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per cleaning.$fill in the blank 1per cleaning 2. Calculate the conversion cost per cleaning.$fill in the blank 2per cleaning 3. Calculate the total variable cost per cleaning.$fill in the blank 3per cleaning 4. Calculate the total service cost per cleaning.$fill in the blank 4per cleaning 5. What if rent on the office that Jean and Tom use to run HHH increased by $2,100? Which of the following statements best describes the effect of this on HHH's costs?
Swift Collision Repair uses activity-based costing to determine the costs of its cases. Information about costs follow: Cost Pool Budgeted Costs Budgeted Cost Driver Paint shop operations and clean up $300,000 750 paint jobs Machine costs 120,000 1,500 machine hours Facilities 80,000 2,000 labor hours Brian’s car was repaired after he was involved in a rear-end collision. The repair involved 3 hours of machine time, 5 hours of labor at 30$ per hour, and the rear of the car was repainted. How much overhead was assigned to brians repair job? a. $840 b. $2,000 c. 941 d. $990

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