iam has been compiling year-end financial data for the painting business where he works. The company specializes in the painting of both residential and commercial properties. William would like to determine what division is more profitable for the company so that the company can shift costs appropriately. William used activity-based costing based on support costs to allocate the Manufacturing Overhead (MOH) costs. He performed calculations and allocations and determined the following division information Sales Direct Cost of Services Facility Costs Management Support Administrative Support Misc. Expenses Residential $175500 $70500 $10500 $30150 $22500 $7000 Commercial $257500 $126500 $22500 $49500 $32900 $7750 Based upon the information provided by William, use vertical analysis to determine which division is using support costs more effectively as a percentage of sales O The residential division, as it is using 2.00% less support cost than the commercial division O The residential division, as it is using 0.85% more support cost than the commercial division O The residential division, as it is using 2.00% more support cost than the commercial division O The residential division, as it is using 0.85% less support cost than the commercial division

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Describe stakeholder orientation at REI.

A: Introduction: A stakeholder is a person that has an interest in a company and has the ability to…

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: Distinguish between assets and liabilities.

A: Step 1 Assets can be defined as the resources owned by the organization which is capable of…

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

Q: What information is provided by the Vendor Balance Detail Report?

A: The Vendor Balance Detail Report provides a detailed summary of a vendor's balance, including…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: Define Disclosure notes.

A: Disclosure notes in accounting refers to the footnotes which are included in financial statements.

Q: Advantages and Disadvantages of Harmonization of Accounting Standards

A: The process of raising the level of agreement among countries in accounting standards and practices…

Q: Define creditors.

A: Creditor: A creditor is a person or a company who has provided fund or loan, and hence, have a claim…

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: differentiate internal user from external user of accounting information

A: Accounting is the detailed process of recording, classifying, summarising and reporting accounting…

Q: Define accrued liability

A: Accrued Liability is an expense that was incurred before the end of the current period but has not…

Q: which internal users need the accounting information

A: Accounting information data is the data that emerges from business exchanges. When distinguished,…

Q: Define bill-and-hold arrangement with example.

A: Bill on hold: Bill on hold transaction specifies that shipping of the product is not done by the…

Q: What is liability

A: Financial accounting includes recording, collecting, summarizing and interpreting the financial data…

Q: Ethics of accruals and deferrals.

A: Lets understand the meaning of accrual and deferrals. Accrual is a recording income and expense in…

Q: Define Debit

A: Accounting depends on double entry system. As per dual aspect principle of accounting, each and…

Q: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: What accounting information system provides?

A: An Accounting Information System (AIS) is a structure that a business uses to collect, store,…

Q: The gross earnings of factory workers for Blossom Company during the month of January are $320,000.…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Explain Bill-and-hold concept.

A:

Q: What is the purpose of a subsidiary ledger?

A:

Q: If money can be invested at 7% compounded monthly, find the present value of 55,300 whic is due…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: Define Profi t and loss (P&L) statement

A: Introduction: The financial statement is a detailed analysis of the financial situation of the…

Q: Define Proprietorship

A: A form of an organization where a single person is the owner and controller of the business is known…

Q: Describe presentation and disclosure regarding revenue.

A: The core principle of IFRS 15 is that revenue is recognised when the goods or services are…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.