Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT)and Evening Tender (ET). The following data are provided for the current fiscal year:2@WSPrice per poundVariable cost per poundSales (in pounds)The total market was estimated to be 60,000 pounds at the time of budget. The actual total market for the year is 59,200 pounds.What is the firm's market size variance? (Round your Intermediate percentage answers to nearest whole percent.)Multiple ChoiceX#3$1,280 unfavorable.$2.080 unfavorable.$3,320 unfavorable.20EDC$4200RF4F%5BudgetedMT$ 40203,000VTET$ 80483,000G< Prev^6Operating ResultsMTET$75$ 5023532,9604,440***MacBook AirB6 of 6Y&7HYUNext >* 008-F1N M19AKOV10PVG{[

Variance arises when the actual costs is different from the standard costs. The results are…

Answered: Gourmet Aroma Coffee House has an…

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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Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 300 per unit Units produced this year 115,000 units Units sold this year 118,750 units Units in beginning-year inventory 3,750 units Beginning inventory costs Variable (3,750 units × $140) $ 525,000 Fixed (3,750 units × $70) 262,500 Total $ 787,500 Manufacturing costs this year Direct materials $ 46 per unit Direct labor $ 64 per unit Overhead costs this year Variable overhead $ 3,200,000 Fixed overhead $ 7,400,000 Selling and administrative costs this year Variable $ 1,450,000 Fixed 4,000,000 1. Prepare the current-year income statement for the company using variable costing.
Profits centers J and T are two decentralized profit centers of cool cat - candy company. Profit centre J manufactures the candy and profit centre T packages and distributes the candy at a sale price of Rs. 15 per unit. Profit centre J transfers 60% (24,00,000 units) of its output to profit centre T. The remainder being sold to outside markets. Following are the expected revenues for the year 2018 Sales Profit centre J Profit centre T 40,00, 000 Units All units received from J Variable costs Rs . 2 per unit Rs. 5 per unit Fixed costs annual Rs. 80,000 Rs. 40.000* Outside market price Rs. 7 per unit Rs. 15 per unit *does not include cost from profit centre J. Required: Calculate transfer price under each of the following transfer pricing methods: 1. cost (using variable cost) 2. Cost (using full cost) 3. Cost plus using a mark- up on full cost of 40% 4. Market price, when the market price for profit centre J's product is Rs. 7 per unit. 5. Negotiated Transfer price 6. Dual Transfer…
WHAT IS SPACEX'S OPERATING CASH FLOW
Shaw Company produces and sells two packaged products—Z-Bikes and y Bikes. Revenue and cost information relating to the products follow: Product Z Bikes Y Bikes Selling price per unit $ 175.00 $ 200.00 Variable expenses per unit $ 85.00 $ 105.00 Traceable fixed expenses per year $ 200,000 $ 75.00 Common fixed expenses in the company total $110 annually. Last year the company produced and sold 50,000 units of Z Bikes and 30,000 units of Y Bikes. Required: Prepare a contribution format income statement segmented by product lines.
Company Y produces and sells two packaged products Weedban and Greengrow Revenue and cost information related to the products follows: Weedban Greengrow SALES price per unit $9.00 $ 31.00 Variable expense per unit $2.90 $14.00 Traceable fixed expense per year $131,000 $44,000 Last year the company produced and sold 38,500 units of weed ban and 17,000 of Green grow. It's annual common fixed expenses are $106,000. Prepare a contribution format income statement segmented by-product lines ? Thank you,
Fortunate Inc. is involved in retailing and has three profit centers classified as “East” and “West” and “South.” East Division sold 38,000 units during the year for a selling price of $25 each—These items cost $15 each and had $2.50 of variable selling expenses (sales commissions) that could be directly traced to the units. West Division sold 16,000 units during the year for a selling price of $27 each—These items cost $17 each and that had $3 of variable selling expenses (sales commissions) that could be directly traced to the units. South Division sold 42,000 units during the year for a selling price of $26 each—These items cost $16 each and had $2 of variable selling expenses (sales commissions) that could be directly traced to the units. Fixed Division Operating Costs that could be directly traced to the divisions were $160,000 for East Division and $95,000 for West Division, and $200,000 for South Division. There were $230,000 of Corporate Costs (which was $20,000 for…
Eastern Chemical Company produces three products. The operating results of the current year are: Actual Price Sales Product Quantity B C 1,858 9,250 925 Target Price $ 381.00 313.60 218.50 Direct materials Direct labor Total prime cost $ The firm sets the target price of each product at 150% of the product's total manufacturing cost. It appears that the firm was able to sell Product Cat a much higher price than the target price of the product and lost money on Product B. Tom Watson, CEO, wants to promote Product C much more aggressively and phase out Product B. He believes that the information suggests that Product C has the greatest potential among the firm's three products because the actual selling price of Product C was almost 50% higher than the target price, while the firm was forced to sell Product B at a price below the target price. 382.88 271.60 326.00 Both the budgeted and actual factory overhead for the current year are $847,300. The actual units sold for each product also…
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 60 Manufacturing support 105 Marketing costs 45 Fixed costs: Manufacturing support 135 Marketing costs 45…
Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Activity Purchasing Warehousing Distributing Cost Driver Number of purchase orders Number of moves Number of shipments. Quantity of Cost Driver 1,040 8,400 540 Maximum cost Cost per Unit of Cost Driver $154 per order 34 per move 84 per shipment Caldwell buys 100,400 units at an average unit cost of $14 and sells them at an average unit price of $24. The firm also has fixed operating costs of $250,400 for the year. Caldwell's customers are demanding a 14% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 8% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 720 and can decrease the cost of each shipment by…
A company uses components at the rate of 15,000 units per year, whichare bought in at a cost of $3.90 each from the supplier. The companyorders 8,000 units each time it places an order and the averageinventory held is 500 units. It costs $30 each time to place an order,regardless of the quantity ordered.The total holding cost is 21% per annum of the average inventory held.Required:-Calculate the total holding cost and total ordering cost?
Shown below is a segmented income statement for Hickory Company’s Kitchen Set product lines: Teflon Spatula Roaster TotalSales Revenue $ 400,000 $ 200,000 $ 300,000 $ 900,000Less: Variable Expenses 225,000 120,000 250,000 595,000Contribution Margin $ 175,000 $ 80,000 $ 50,000 $ 305,000Less Direct Fixed Expenses:Machine Rent (5,000) (20,000) (50,000) (75,000)Supervision (15,000) (10,000) (20,000) (45,000)Depreciation (35,000) (10,000) (25,000) (70,000)Segment Margin $ 120,000 $ 40,000 $ (45,000) $ 115,000 Refer to the information for Hickory Company above. Hickory’s management is deciding whether to keep or drop the Roaster product line. Hickory’s parquet flooring product line…
Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…

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