Flounder's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,160 sessions. The company has invested $2,399,460 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows:| Cost Type | Per Session | Total ||--------------------------------------------|-------------|-------------|| Direct materials (CDs, etc.) | $20 | || Direct labor | $405 | || Variable overhead | $55 | || Fixed overhead | | $1,102,000 || Variable selling and administrative expenses | $35 | || Fixed selling and administrative expenses | | $585,800 |---**(a)****Your answer is correct.**Determine the total cost per session.- **Total cost:** $1970 per session- **Attempts used:** 1 of 5---**(b)**Determine the desired ROI per session. *(Round answer to 2 decimal places, e.g., 10.50.)*- **ROI:** $______ per session

Desired ROI per session = Total ROI / Total Number of Sessions Total Number of Sessions = 1,160…

Flounder's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,160 sessions. The company has invested $2,399,460 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Your answer is correct. Determine the total cost per session. (b) Total cost $ eTextbook and Media 1970 ROI $ Per Session $ 20 $405 $55 $35 per session Total per session $1,102,000 $585,800 Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 10.50.) Attempts: 1 of 5 used

Flounder's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,160 sessions. The company has invested $2,399,460 in the studio and expects a return on investment (ROI) of 20%. Budgeted costs for the coming year are as follows. Direct materials (CDs, etc.) Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Your answer is correct. Determine the total cost per session. (b) Total cost $ eTextbook and Media 1970 ROI $ Per Session $ 20 $405 $55 $35 per session Total per session $1,102,000 $585,800 Determine the desired ROI per session. (Round answer to 2 decimal places, e.g. 10.50.) Attempts: 1 of 5 used

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $1,020. Budgeted cost data per tenant application for 2022 follow: ⚫ Professional labor: 1.5 hours at $20.00 per hour ⚫ Credit checks: $66.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,400 for 380 hours of professional labor. Credit checks went up to $71 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,200. The average first monthly rentals for August 2022 were $1,120 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August 2022?…
Metal Works Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown): Activity Total Cost Cost Driver Maintenance $20,000 Machine hours Materials receiving 48,000 Shipments received Machine setups 8,000 # of setups Inspection 19,200 # of inspections The expected activity for the year for various cost drivers is: Cost Drivers Expected Activity Direct Labor Hours 32,000 Machine-hours 10,000 Shipments Received 4,000 Setups 80 Quality inspections 6,400 The company is considering accepting a significant production contract. Estimates for the contract are as follows: Contract Estimate Direct materials $96,000 Direct labor ( 640 hours) $128,000 Number of material shipments received 200 Number of inspections 320 Number of setups 8 Number of machine-hours 1,200…
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $188,400 per year, consisting of $0.19 per ton variable cost and $138,400 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 56% of the Transport Services Department’s capacity and the Southern Plant requires 44%. During the year, the Transport Services Department actually hauled 129,000 tons of ore to the Northern Plant and 59,800 tons to the Southern Plant. The Transport Services Department incurred $371,000 in cost during the year, of which $52,500 was variable cost and $318,500 was fixed cost. Required: How much of the Transport Services Department’s variable costs should be charged to each plant? How much of the Transport Services Department’s fixed costs should…
Hannibal Steel Company's Transport Services Department provides trucks to haul ore from the company's mine to its two steel mills- the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $311,100 per year, consisting of $0.23 per ton variable cost and $261,100 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 61% of the Transport Services Department's capacity and the Southern Plant requires 39%. During the year, the Transport Services Department actually hauled 118,000 tons of ore to the Northern Plant and 55,600 tons to the Southern Plant. The Transport Services Department incurred $355,000 in cost during the year, of which $53,100 was variable and $301,900 was fixed. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the Transport Services Department's fixed costs should be charged to…
Wilson Blossom is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows: (a1) Direct materials $55.00 Direct labor 19.00 Manufacturing overhead 16.00 Selling and administrative 14.00 Total unit cost $104.00 The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses. (a2) Your answer is partially correct. Your answer is correct. Calculate variable overhead per unit and variable selling and…
Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the following information. Units produced Material moves per product line Lenses 30 Mirrors 30 21 11 220 220 Direct-labor hours per unit The total budgeted material-handling cost is $94,200. Required: 1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount? 2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount? 3. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling…
Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies: Salaries (fixed) $95,000 Employee benefits (fixed) 10,000 Depreciation of copy machines (fixed) 10,000 Utilities (fixed) 5,000 Paper (variable, 1 cent per copy) 50,000 Toner (variable, 1 cent per copy) 50,000 The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy. Assuming the following copies were made during the year, 2,788,250 for sales and 3,284,250 for administration, calculate the copy department costs allocated to sales. Round to two decimal places.
Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson Labs is projecting the following sales: The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January, $52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests 5,900 4,700 5,200 ..... Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Anderson Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income .....
Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year, divided between two departments: Cutting, $350,000, and Sewing, $400,000. Each canopy requires 2 direct labor hours in Cutting and 1 direct labor hour in Sewing. Each tent requires 1 direct labor hour in Cutting and 6 direct labor hours in Sewing. Production for the year is budgeted for 20,000 canopies and 10,000 tents. a. Determine the total number of budgeted direct labor hours for the year in each department. Cutting fill in the blank 1 direct labor hours Sewing fill in the blank 2 direct labor hours b. Determine the departmental factory overhead rate for each department. Round your answers to two decimal places, if necessary. Cutting $fill in the blank 3 per direct labor hour Sewing $fill in the blank 4 per direct labor hour c. Determine the factory overhead allocated per unit of each product, using the departmental factory overhead…
Wildhorse's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Restorers' wages and benefits Purchasing agent's salary and benefits Administrative salaries and benefits Other overhead costs Total budgeted costs (a1) Your answer is correct. Profit margin $ eTextbook and Media (a2) The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were $1,200,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $60.00 and that the material loading charge was 83.80%. Your answer is correct. Time Charges Material Loading Charges Profit margin (a3) $329,400 Determine the profit margin per hour on labor. (Round answer to 2 decimal places, e.g. 15.25.) eTextbook and Media 73,200 24,400 $427,000 Total price of labor and materials $ Determine the profit margin on…
Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 20 people, and the Assembly Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Molding Department are budgeted at $190,000, and the Assembly Department costs are budgeted at $80,000. Two support departments—Engineering and General Factory—directly support the two production departments and have budgeted costs of $216,000 and $370,000, respectively. The production departments' overhead rates cannot be determined until the support departments' costs are properly allocated. The following schedule reflects the use of the Engineering Department's and General Factory Department's output by the various departments. Engineering General Factory Molding Assembly Engineering hours — 2,000 2,000 8,000 Square feet…
Sunland Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Sunland is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead, Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (1) One mobile safe (2) Mobile Safes One walk-in safe 200 300 450 800 Walk-in Safes 435.2 50 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1.700 per unit per unit