Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides data concerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesFixed Costper MonthCost perCar Washed$ 0.70$ 1,200$ 0.06$ 0.30$ 4,500$ 0.30$ 8,000$ 2,100$ 1,700$ 0.02For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in Augustand to collect an average of $6.70 per car washed.Required:Prepare the company's planning budget for August.Lavage RapidePlanning BudgetFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenance

Lavage RapidePlanning BudgetFor the month Ended August 31 (8,100 Cars)ParticularsAmount Revenue $…

Answered: Lavage Rapide is a Canadian company…

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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Noteworthy, Incorporated, produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment Depreciation on CEO's company car Speakers used in the keyboard Production supervisor's salary Glue and screws used in the keyboards Cost to run an ad on local radio stations Wages of persons who install the speakers $ 820 180 1,140 2,370 250 2,970 Utilities for the factory Personnel manager's salary Wages of person who attaches legs to keyboards Required: 1. Calculate the total product cost for Noteworthy. 2. Calculate the prime cost for Noteworthy. 3. Calculate the manufacturing overhead for Noteworthy. 4. Calculate the direct labor for Noteworthy. 5. Calculate the conversion cost for Noteworthy. 650 1,250 2,640 2,070 6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy. 7. Calculate the total fixed cost (with number of units produced…
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Davos Inc. makes fiberglass ski-boards in Switzerland. Identify the correct matching of terms. a. None of the answers are correct b. Fiberglass is factory overhead C. Plant real estate taxes are a period cost d. Payroll taxes for workers in the Packaging Department are direct labor e. Depreciation on delivery trucks is a product cost
Spartan Corporation, a U.S. company, manufactures green eyeshades for sale in the United States and Europe. All manufacturing activities take place in Michigan. During the current year, Spartan sold 8,400 green eyeshades to European customers at a price of $ 10.40 each. Each eyeshade costs $4.20 to produce. For each independent scenario, determine the source of the gross income from sale of the green eyeshades. b. Half of Spartan's production assets are located outside the United States.
Munoz Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,100 Units × $19) $ 248,900 Labor (13,100 Units × $12) 157,200 Depreciation on manufacturing equipment* 25,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 27,000 Allocated portion of corporate-level facility-sustaining costs 82,000 Total cost to make 13,100 engines $ 609,100 *The equipment has a book value of $108,000 but its market value is zero.Required Determine the maximum price per unit that Munoz would be willing to pay for the engines. Determine the maximum price per unit that Munoz would be willing to pay for the engines, if production increased to 18,650 units. (For all requirements, Round your answers to 2 decimal places.)
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Variable expenses: Total variable expenses Fixed expenses: Fixed Cost per Month Total fixed expenses $1,600 4,900 8,500 2,300 2,000 The company expects to charge customers an average of $6.10 per car washed. Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Cost per Car Washed $0.99 0.30 8.50 0.68 9,000 Cars Washed 0.07 10,000
5.
Pharoah Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units sold 935 510 255 1,700 Selling price $250 $430 $840 Variable cost $195 $285 $410 The company's total fixed costs to produce the filtration systems are $176,960. (a) (b) (c) (d) Determine the number of units of each model that the company must sell to break even. Basic Basic Plus Premium Break-even units units eTextbook and Media Save for Later units units Attempts: 0 of 3 used Submit Answer
Shamrock Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A Product B Product C $110,000 $135,000 75,000 125,000 $88,000 46,000 25,200 71,200 $16,800 18,000 93,000 $17,000 18,000 143,000 $(8,000) Total $333,000 246,000 61,200 307.200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.
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Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: Level of Activity Low High Machine hours 60,000 80,000 Total MOH costs 274,000 pesos 312,000 pesos The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 60,000 machine-hours level of activity as follows: Indirect Materials (variables) 90,000 Rent (fixed) 130,000 Maintenance (mixed) 54,000 Total Overhead Cost 274,000 For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the factory overhead cost of 312,000 pesos at the high level of activity consists of maintenance cost. 2. Using the high-low method,…

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