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:Fixed Cost Cost per CarCleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesper MonthWashed$ 0.60$ 1,200$ 0.07$ 0.15$ 4,000$ 0.20$ 8,100$ 1,900$ 1,400$ 0.01For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company actually washed 8,100 cars in Augustand collected an average of $6.80 per car washed.Required:Prepare the company's flexible budget for August.Lavage RapideFlexible BudgetFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income

To prepare Lavage Rapide's flexible budget for August, we'll calculate the expenses based on the…

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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Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department? Multiple Choice Salary of the clock production supervisor. Depreciation on the factory building. Depreciation on clock-making equipment. All of the answers are correct.
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Denali Industries makes specialized oil well equipment. Use total direct cost as the burden vehicle, and compute the total cost per unit for each model. Total manufacturing indirect costs are $2,500,000, and there are 1000 units manufactured per year for Model A, 600 for Model K, and 500 for Model T. Use total direct cost as the burden vehicle, and compute the total cost per unit for each model.
Kofi Abebrese runs a small industrial company that specialized in the production of high standard windows for housing estates. A worker is paid GH¢0.9 per hour and can produce two window s with an hour. Each window uses a frame costing GH¢1 and incur a variable overheads of GH¢0.7. Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house. Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. It is now let out on a renewable annual lease of GH¢600. A new building company, Allied Consult, which specializes in the production of prefabricated houses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which will be for a year initially, to produce molded internal building sections. Kofi estimates that, the contract will take 13,200 hours of works, or the work of five men for a year, and that…
Kofi Abebrese runs a small industrial company that specialized in the production of high standardwindows for housing estates. A worker is paid GH¢0.9 per hour and can produce two window swith an hour. Each window uses a frame costing GH¢1 and incur a variable overheads of GH¢0.7.Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house.Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. Itis now let out on a renewable annual lease of GH¢600.A new building company, Allied Consult, which specializes in the production of prefabricatedhouses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which willbe for a year initially, to produce molded internal building sections. Kofi estimates that, thecontract will take 13,200 hours of works, or the work of five men for a year, and that…
Sandhill Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Units sold Basic 1,098 Unit selling price $245 Unit variable cost $197 Basic Plus 414 $395 $283 Premium Total 288 1.800 $800 $414 The company's total fixed costs to produce the filtration systems are $163,520.
Kofi Abebrese runs a small industrial company that specializes in the production of high-standard windows for housing estates. A worker is paid GH¢0.9 per hour and can produce two windows with an hour. Each window uses a frame costing GH¢1 and incurs a variable overhead of GH¢0.7. Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house. Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. It is now let out on a renewable annual lease of GH¢600. A new building company, Allied Consult, which specializes in the production of prefabricated houses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which will be for a year initially, to produced molded internal building sections. Kofi estimates that the contract will take 13,200 hours of works, or the work of five men for a year, and that…
Poly products LLC set up machines for producing various products like spring mattresses and beds, the company also manufactures foam mattresses, etc. The total cost allocated to cost centre for machine set up related costs is RO 500,000 and that there were total 1000 set ups during the period. If spring mattresses product needs 250 set ups, find out the machine set up cost spent by the company only for spring mattresses ? a. RO 125,000 b. None of these c. RO 250,000 d. RO 500
Suppose Italian Grill restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.56 of ingredients, $0.21 of variable overhead (electricity to run the oven), and $0.75 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Italian Grill assigns $0.99 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.84 per loaf. Read the requirements. Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Italian Grill's unit cost of making the bread. Direct material Direct labor Italian Grill Outsourcing Decision Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit K

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