Lucky Cow Dairy provided the following expense information for May: Assembly-line workers' wages $72,100 Caps for milk bottles 3600 Reconfiguring the assembly line 125,700 Customer support hotline 10,400 Delivery expenses 20,300 Depreciation on factory equipment 75,000 Plastic milk bottles 52,300

Lucky Cow Dairy provided the following expense information for May: Assembly-line workers' wages $72,100 Caps for milk bottles 3600 Reconfiguring the assembly line 125,700 Customer support hotline 10,400 Delivery expenses 20,300 Depreciation on factory equipment 75,000 Plastic milk bottles 52,300

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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Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Variable Element Element per Liter per Month Revenue $ 25.00 Raw materials Wages $ 6,900 $5.95 $ 2.70 Utilities Rent $ 2,930 $ 3,900 $ 1.50 Insurance $,2,650 Miscellaneous $ 780 Actual Total for June $ 151,540 $ 39,030 $ 23,500 $13,000 $ 3,900 $ 2,650 1.65 $ 10,890 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,900 plus $2.70 per liter of gelato sold and the actual wages for June were $23,500. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Revenue…
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 42,000 3,000 orders Loading truck Number of items 243,000 135,000 items Delivering merchandise Number of orders 51,000 3,000 orders Processing invoice Number of invoices 34,000 2,000 invoices Total overhead $ 370,000 Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner Le Chien Chaud Order value $ 76,000 $ 86,000 Number of orders 56 180 Number of items 400 2,200…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $ 2.00 Equipment depreciation $ 440 Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual Results Pizzas 1,810 Deliveries 170 Revenue $ 36,800 Pizza ingredients $ 8,110 Kitchen staff $ 5,950 Utilities $ 910 Delivery person $…
Concord Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Concord's monthly manufacturing cost and other expense data are as follows. ReplyForward
Sweet Nature Corporation manufactures “Sweet ‘n Salty” trail mix. Last month, the company produced and sold 800,000 units and sold them at a price of $4 each. Related information appears below:Item Total CostUtilities for factory $17,000 Advertising (based on number of website page views) 22,000 Costs for product packaging 125,000 Chocolate pieces and dried fruit 152,800 Wages for factory cleaning staff 275,000 Rent of factory and equipment 350,000 Salaries for office staff 475,000 Wages for production crew 486,000 Insurance on the factory 18,000 Nuts (e.g. peanuts, cashews and almonds) 878,950 Required:a. Identify all costs above as either a product cost (specifically DM, DL or OH) or a period cost (PC).b. The company uses the cost-plus approach to pricing and wants to achieve an approximate profit of 25 percent. Did it meet its profit objective last month? Briefly explain. Regardless, what two specific actions would you recommend to improve its profitability Prepare a CVP income…
Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? a. The total fixed cost is $8,000, and the variable cost is $1,700. b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. d. The total fixed cost is $1,700, and the variable cost is $8,000.
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Raw materials Fixed Element per Month Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent $ 7,200 $ 3,230 $ 4,200 $ 2,950 $ 810 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $7,200 plus $3.00 per liter of gelato sold and the actual wages for June were $26,300. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters. Insurance Miscellaneous Variable. Element per Liter $ 28.00 $ 6.25 $ 3.00 $ 1.80 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
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Cowboy Ice Cream Company (CIC) produces ice cream bars that it markets through a variety of grocery stores. It makes the ice cream bars in batches of 2,000 units. CIC produced 36,000 ice cream bars during the prior accounting period. The cost of producing the ice cream bars is shown below. Materials cost ($29 per unit x 36,000) Labor cost ($26 per unit x 36,000) Manufacturing supplies ($9 x 36,000) Batch-level costs (18 batches at $6,000 per batch) Product-level costs $1,044,000 936,000 324,000 108,000 300,000 370,000 Facility-level costs Total costs $3,082,000 Cost per unit = $3,082,000 + 36, 000 = $85.61 Required a. OnCue has offered to buy a batch of 500 ice cream bars for $68 each. CIC's normal selling price is $93 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should CIC accept the special order? b. OnCue offered to buy a batch of 2,000 ice cream bars for $68 per unit, calculate the relevant cost per unit for the…
Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Activity (Cost) Machine maintenance ($420,000) Setups ($790,000) Packing ($198,000) Photo development ($440,000) Deluxe 60,000 Moderate 180,000 Cost Driver Number of machine hours Number of setups Economy 240,000 Number of cartons Number of pictures Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required a. Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year: Type of Textbook Moderate 900 10 40 1,500 Deluxe 300 35 10 3,500 (For all requirements. round your answers to 2 decimal places.)…
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Liter Actual Total for June Revenue $ 20.00 $122,540 Raw materials $ 5.45 $ 36,030 Wages $ 6,400 $ 2.20 $ 20,200 Utilities $ 2,430 $ 1.00 $ 9,100 Rent $3,400 $3,400 Insurance $ 2,150 $2,150 Miscellaneous $ 730 $ 1.15 $ 8,050 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,4 00 plus $2.20 per liter of gelato sold and the actual wages for June were $20,200. Via Gelato expected to sell 6,300 liters in June, but actually sold 6,500 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Subject: Acounting

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bartleby, a Learneo, Inc. business

	$268,100
	$188,900
	$197,800
	$125,700

Assembly-line workers' wages	$72,100
Caps for milk bottles	3600
Reconfiguring the assembly line	125,700
Customer support hotline	10,400
Delivery expenses	20,300
Depreciation on factory equipment	75,000
Plastic milk bottles	52,300
Salaries of salespeople	63,200
Salaries of research scientists	70,300
Customer toll-free order line	6800