Futura Company purchases the 75.000 starters that it installs in its standard line of farm tractors from a supplier for the price of per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.70 as shown below: Direct materials Direct labor Per Unit $ 7.00 2.00 1.80 1.10 Total Supervision Depreciation Variable manufacturing overhead Rent Total product cost If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $135,000) to oversee production. Howe 0.40 6.40 $ 12.70 $ 135,000 $ 82,500 $ 30,000
Q: Required information [The following information applies to the questions displayed below] Donnie…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Required: Calculate the variable overhead efficiency variance
A: Overheads are the costs that are indirectly related to the production of goods or related to the…
Q: Atlanta Company $ 429,000 572,000 Atlanta Company Spokane Company Total liabilities Total equity…
A: Debt to Equity ratio means total Liabilities divided by Total Equity. Which is Used to measure the…
Q: Expert Electronics, Incorporated (EEI) recognized $8,000 of sales revenue on account and collected…
A: The Cash flow Statement is one of the important statements prepared by business organizations. It…
Q: Ex 9.01 Which of the following statements are false? 1. A Sales Journal can be customized for each…
A: Accounts Receivable Control / Subsidiary Ledger It is important to prepare both Accounts Receivable…
Q: A loan was made 3 years and ago 4 months at 6% simple interest. The principal amount of the loan has…
A: Simple interest is quite simple and there is no interest on interest and there is interest on…
Q: When Danny withdrew from John, Daniel, Harry and Danny LLP, he was paid $80,000, although his…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: c. Compute the amount of cash flow associated with the sale of machinery.
A: A cash flow statement denotes total amount cash is inflows and cash outflows your business in a…
Q: Segment A Segment B Segment C Margin (operating income + sales) Sales Turnover (sales average…
A: Return on Investment (ROI) and Sales Turnover ratio are financial parameters to review performance…
Q: 7. What is the ROI for segment A? Enter your number with four decimal points. For example, 5.23%…
A: ROI stands for Return on investment which is calculated dividing Operating Income by Average assets…
Q: Hi, can you answer the following questions that wasn't answered in the problem and count it as 2…
A: Impairment is a term used in accounting to describe a situation in which the carrying value of an…
Q: Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its…
A: A transaction should be recorded in the books of accounts whenever a business event occurs that can…
Q: Determine the amount to be paid in full settlement of each of the following invoices, assuming that…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: When determining audit independence the relevant test is: Select one: O a. all of the options are…
A: Auditor independence means that the auditor is objective, unbiased and has no conflicts of interest…
Q: Elevator Co. makes two product models, A and B, and provides both installation and inspection…
A: Cost allocation is most important part of cost accounting. There are various methods of cost…
Q: Penny is paid a gross wage of $2,846 on a monthly basis. She is single and is entitled to 2…
A: Income tax is a tax levied by the federal government and some state governments on an individual's…
Q: You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the…
A: Variable overhead expenditure variance=Budgeted overheads for actual hours worked-Actual Variable…
Q: Cullumber Company provides the following information about its defined benefit pension plan for the…
A: Pension expense means the cost a company incurs to fund its employees' defined benefit pension plan…
Q: On July 1, 2023 Pearl's Greenhouse purchased a new delivery truck for $100,000. Pearl estimates that…
A: Depreciation :— It is the allocation of depreciable cost of asset over the life of asset.…
Q: Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000…
A: Bonds payable are long term liability for a company and by issuing bonds payable company collects…
Q: Which of the following conditions or events would most likely cause an auditor to have substantial…
A: While auditing the financial statements of the client, auditor is responsible to assess the ability…
Q: Olive Company makes silver belt buckles. The company's master budget appears in the first column of…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: Walton Company has measured its quality costs for the past two years. After the company gathers its…
A: The total cost of quality test refers to the process of measuring and analyzing the costs of quality…
Q: The monthly demand for ice cans being manufactured by Mr. Sison is 3,200 pieces with a manually…
A: Given, Number of pieces = 3,200 pieces Cost of manually operated = 25 Pesos Cut cost = 30% Costing…
Q: BE22.6 At January 1, 2022, Eikenberry Inc. had accounts receivable of $72,000. At December 31, 2022,…
A: Answer:- Formulas:- 1. Cash receipt from customers = Sales revenue + Decrease in account…
Q: Below is a list of Sharks Company’s general ledger balances after closing, December 31. Use the…
A: Post-closing Trial Balance is the one which is prepared to report the account balances of all the…
Q: Jackson, Inc. is in the process of preparing its Statement of Cash Flows for 2021. The following…
A: The cash flow statement is the statement which shows the inflow and outflow of cash during the…
Q: [The following information applies to the questions displayed below.] On January 1, MM Company…
A: The principal amount gets decreased with the excess payment of installment over and above the…
Q: Which of the following statements about depreciation is false?: Depreciation does not apply to…
A: Depreciation Expense - Depreciation Expense is an Expense charged on the fixed assets owned by the…
Q: 4. Which segment has the best margin? a. Segment A b. Segment B c. Segment C d. Segment A and C 5.…
A: Ratio analysis used identify the business performance of the company. It is used to measure…
Q: What revenue amount must one customer generate before it must be identified as a major customer?
A: To determine the revenue amount that must be generated by a customer to be identified as a major…
Q: Zitrik Corporation manufactured 90,000 buckets during February. The variable overhead…
A: Variable overheads are those indirect costs and expenses which changes along with change in activity…
Q: Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products…
A: Activity based cost system is a type of costing method in which the costs are determined according…
Q: Contribution Margin I/S: Recast Exercise Sold (Unit) 10,000 Sales Variable expenses Contribution…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: Sunland Company is planning to sell 1000 buckets and produce 980 buckets during March. Each bucket…
A: Budgeting is very useful method of estimating revenue and expense for an organization. It is…
Q: Calculate the interest component of pension expense only under ASPE and under IFRS.
A: The question provides information about ACME Incorporated's defined benefit pension plan, including…
Q: Journalize the following transactions of a merchandising business. 1) Purchased made on account…
A: A financial transaction's journal entry serves as a record of the transaction's first recording…
Q: December 31, Westworld Incorporated has the following equity accounts and balances. referred Stock…
A: The shareholders' equity comprises the issued capital and retained earnings of the business. The…
Q: Problem Set B ..... PROBLEM 8-1B Kovarik Company had the following payroll for the week ended March…
A: Payroll taxes are the taxes that are paid by both the employer and the employee to support the…
Q: 7. Special tools for the manufacture of finished plastic products cost $15,000 and have an estimated…
A: There are various methods of calculation the depreciation expense over any non-current…
Q: he net present value is incorrect. Can you try the problem again?
A: Net Present Value (NPV) The difference between the present value of the cash outflow and inflow at…
Q: Mr. Flores made a money market placement of P1, 000.000 for 30 days at 7.5% per year. If the…
A: Hi student Since there are multiple questions, we will answer only first question. Interest is the…
Q: On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years, with interest…
A: Bonds are the securities issued by the entity for the purpose of raising funds from the market. It…
Q: Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next…
A: The budget is prepared to estimate the requirements for the period. The production budget is…
Q: Rosemary is planning to make fancy multi-tiered wedding cakes for the next wedding season. To make…
A: The contribution Margin is calculated as difference between sales and variable cost. The break even…
Q: Frank goes to Clemson University and pays $30,000 in tuition. He works and pays for his schooling.…
A: The American Opportunity Tax Credit (AOTC) is a federal tax credit intended to assist qualifying…
Q: On January 1, 2025, Shetland Company loans $252,510 to Durham Corporation in exchange for a $300,000…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…
Q: The CVP income statements shown below are available for Blossom Company and Crane Company. Sales…
A: The contribution margin is calculated as the difference between sales and contribution margin. The…
Q: Discuss the impact business analytics has had and continues to have on business strategy.
A: Business Analytics It refers to the set of technologies and disciplines for solving problems of…
Q: Data table Standard Cost Information Actual Cost Information Direct Materials Direct Labor Quantity…
A: Variance is calculated in order to compare the standard result with the actual result.
Subject: acounting
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?Boston Executive. Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: The company received an offer from Elite Mini-Bars to produce the insets for $2,100 per Unit and supply 1,000 mini-bars for the coming years estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the companys total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini bar production can be used by a different production group that will lease it for $55,000 per year. Should the company make or buy the mini-bar insert?Futura Company purchases the 66,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.10 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.10 as shown below: Direct materials. Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 7.00 2.20 1.80 1.20 0.40 0.50 $ 13.10 Total $ 118,800 $ 79,200 $ 33,000 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $118,800) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant and can't be avoided. The total rent on the plant is $81,000…
- Futura Company purchases the 74,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.60 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.10 as shown below: Direct materials. Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.00 1.60 1.50 0.60 0.40 $ 13.10 Total $ 118,400 $ 111,000 $ 29,600 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $118,400) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $81,000 per period.…Futura Company purchases the 65,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.30 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Per Unit Total Direct materials $ 5.00 Direct labor 3.50 Supervision Depreciation Variable manufacturing overhead 1.80 $117,000 1.50 $ 97,500 0.80 Rent 0.30 $ 19,500 Total product cost $12.90 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $117,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $85,000 per period.…Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.00 1.50 1.30 0.70 0.40 $ 12.90 Total If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $106,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $84,000 per period. Depreciation is due to obsolescence…
- Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.00 1.50 1.30 0.70 0.40 $ 12.90 Total $ 106,500 $ 92,300 $ 28,400 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $106,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $84,000 per period.…Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.00 1.50 1.30 0.70 0.40 $12.90 Total $ 106,500 $ 92,300 $ 28,400 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $106,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $84,000 per period.…Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $13.00 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $14.20 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit Total $ 7.00 3.00 B 1.90 $ 134,900 1.40 $ 99,400 0.50 0.40 $ 28,400 $14.20 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $134,900) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $82,000 per period.…
- Futura Company purchases the 76,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.60 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.70 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 6.00 3.50 1.80 1.40 0.60 0.40 $ 13.70 Financial advantage Total $ 221,600 $ 136,800 $ 106,400 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $136,800) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $86,000…Futura Company purchases the 80,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.60 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $11.90 as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 5.00 2.50 1.80 1.50 0.60 0.50 $11.90 Financial advantage Total If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $144,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $83,000 per period. Depreciation is…Futura Company purchases the 66,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $13.20 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However the company's chief engineer is opposed to making the starters because the production cost per unit is $14.10 as shown below. Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per unit $ 7.00 2.50 1.90 1.40 0.70 0.60 $14.10 Total Financial (disadvantage) $125,400 $ 92,400* $ 39,600 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $125,400) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is…