Required informationUse the following information for the Quick Study below. (Algo)[The following information applies to the questions displayed below.]Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,050 racketsand sold 4,930. Each racket was sold at a price of $90. Fixed overhead costs are $78,650 per year, and fixed selling andadministrative costs are $65,400 per year. The company also reports the following per unit variable costs for the year.Direct materialsDirect laborVariable overheadVariable selling and administrative expensesQS 19-4 (Algo) Variable costing income statement LO P2Prepare an income statement under variable costing.ACES INCORPORATEDIncome Statement (Variable Costing)SalesLess: Variable expensesS 466,200$12852

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Required information Use the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured In a small plant that relies heavily on direct labor workers. Thus, varlable expenses are high, totaling $15.000 per ball, of which 60% Is direct labor cost Last year, the company sold 62.000 of these balls, with the following results: $ 1,558, 000 930, e00 Sales (62,889 balls) Variable expenses Contribution margin Fixed expenses 620,e00 426,000 $ 194, 000 Net operating income Required: 1. Compute (a) last year's CM ratio and the break-even polnt in balls, and (b) the degree of operating leverage at last year's sales level. 2 Due to an Increase in labor rates, the company estimates that next year's varlable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remalns constant at $25.00, what will be next year's CM ratio and the break-even polnt in balls? 3. Refer to the data in (2) above. If the expected change in…
ohn (Head of New York's Golf Club) has given you the following per unit estimates going into his second year of operation (beginning May 1,2021) for his only product at this point; the Duffer Club: Direct material: $94 Direct labour: $31 Variable overhead: $7.72 Selling price: $168 Tax rate: 20% Monthly fixed costs: $12.67 ($38,000 total fixed costs) Practical capacity and current production level: 3,000 units A) Calculate New York's Club monthly break-even sales of the Duffer Club in both units and dollars (round to nearest dollar and next unit) B) If New York Golf Club's strategy is to just break-even for the near future, how many additional Duffer clubs (units) above the current break-even point would need to be sold each month if the company wishes to increase their currently budgeted advertising costs by $12,000 per month. Assume no changes to the selling price or to any of Duffmeister'svariable costs given above.
Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year. Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2 Prepare an income statement under variable costing.
A company produces several product lines. One of those lines generates the following annual cost and production data: The company adds 40% to its production cost in selling to the retailer. The retailer in turn adds a 50% profit margin when selling to its customers. How much would it cost a retailer to buy 100 units of the product? (a) $4800 (b) $6720 (c) $7200 (d) $1008
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
A manufacturing company produces 72,960 microwave ovens annually at its factory in California in order to meet expected global demand. To accomplish this, each worker at the plant works 600 hours per quarter (a quarter = 3 months). The labor productivity at this plant is known to be equal to 0.10 microwave ovens per labor-hour. (P.1. - A) How many workers are employed at the plant? Show all the steps and details of your calculations to get full mark. ( P.1. - B) This company decided to produce now 16,800 additional (i.e., in addition to the 72,900) microwave ovens. What is the number of additional (i.e., in addition to the number found in part P.1.- A. above) workers needed to maintain the same level of labor productivity? These additional workers will also work 600 hours per quarter. Show all the steps and details of your calculations to get full mark.
How can I resolve this problem? Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,481 per unit and then sells them to retail customers for an average price of $3,400 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 930 per month Sales salaries and commissions $ 4,803 per month, plus 4% of sales Delivery of pianos to customers $ 63 per piano sold Utilities $ 649 per month Depreciation of sales facilities $ 4,913 per month Administrative: Executive salaries $ 13,575 per month Insurance $ 711 per month Clerical $ 2,516 per month, plus $37 per piano sold Depreciation of office equipment $ 885 per month During August, Marwick’s Pianos, Inc., sold and delivered 63 pianos. Required: 1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and…
Sheffield Co. estimates that it will incur $1290000 of overhead costs each year in its three main departments, machining ($750000), inspections ($360000) and packing ($180000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Sheffield's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $645000 O $446538 $642000 O $310500 1000 100 350 1700 Product Y 3000 500 650 1800 If ABC is used, how much overhead will be assigned to Product X?
Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $1,008,000 (based on $18 per hour × 56,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Factory overhead costs Independent variable Direct labor hours Intercept $ 136,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.959 R2 0.846 Based on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? Multiple Choice $72 $92 $95 $77
Wet Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: 6,600 hours @ $20 per hr Production manager salary: $55,000 Factory rent: $26,400 Equipment maintenance: $11,000 (considered a variable expense) Equipment depreciation: $11,000 Production for the year: 12,000 units Total Revenue: $1,100,000 Total aquariums sold during the period: 10,000 units Operating Income under absorption costing (after non-production expenses): $224,400 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under variable costing? (Round per-unit costs to the nearest cent.) Select one: O a. $209,000 b. $207,166 c. None of these options are correct. OO O d. $239,800 O e. $241,626
Please help me

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS