Show the complete solution. IBM is engaged in selling motorcycle spare parts and components is encountering difficulties in collecting its receivables. It takes it an average of 45 days to collect customer receivables. On an average, it also takes 60 days to sell an inventory from the date it was originally purchased. Compute for IBM’ operating cycle.
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Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Flexible budget performance report is the statement which is prepared by the entity to show the…
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A: Formula: Throughput time = Inspection time + process time + queue time + move time.
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- Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had received a __ from a client. The client had just requested a large quantity of components from Hung. A. purchase order B. purchase requisition C. back order D. voucher E. bill of ladingThe following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company’s many outlets: Per Pair of Shoes Selling price $ 25.00 Variable expenses: Invoice cost $ 11.50 Sales commission 3.50 Total variable expenses $ 15.00 Annual Fixed expenses: Advertising $ 32,000 Rent 17,000 Salaries 110,000 Total fixed expenses $ 159,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $35,400 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns. Total units returned. Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $200 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Required 1 Required 2 Jerry, Inc. Kate Co. 5 1,000 Customer unit level costs: Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Inc. and Kate Co. 2. Compare the profitability of these two customers. Customer batch…
- Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.10 $ 0.25 $ 0.30 Administrative expenses Total expenses Net operating income $ 1,300 $ 4,300 $ 8,300 $ 2,200 $ 1,800 8,400 $ 59,370 5,480 2,100 $ 0.04 2,315 7,150 8,300 2,400 2,032 29,777 $ 29,593 Required: Prepare a flexible budget performance report for August. Note:…The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,500, they could be sold for $19,900. Alternatively, the keyboards could be sold “as is” for $8,400. What is the net advantage or disadvantage of re-working the keyboards?Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 21,500 $ 15.00. $7.30 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Revenue Expenses: Administrative expenses $ 0.50 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $54.00 per repair-hour. $ 2,760 $ 5,740 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 4,630 $ 3,820 Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income $…
- Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies. Electricity Maintenance Rent Wages and salaries. Depreciation Administrative expenses $ 0.02 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: I Cleaning supplies. Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Cost per Month Car Washed $0.60 $1,400 $ 0.08 $4,600 $ 8,300 $ 2,100 $1,500 Rent Administrative expenses Total expenses Net operating income 8,500 $ 54,100 $ 0.15 $ 0.20 5,540 2,042 1,500 6,640 8,300 2,300 1,568 27,890 $26,290 Required: Calculate the company's revenue and spending variances for August.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…Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,060 each. The average cost of a television from the manufacturer is $1,330. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Cost Formula Selling: Advertising $ 1,090 per month Delivery of televisions $ 50 per television sold Sales salaries and commissions $ 3,040 per month, plus 5% of sales Utilities $ 404 per month Depreciation of sales facilities $ 3,160 per month Administrative: Executive salaries $ 11,500 per month Depreciation of office equipment $ 805 per month Clerical $ 1,860 per month, plus $49 per television sold Insurance $ 720 per month During April, the company sold and delivered 219…
- Johnson Enterprises uses a computer to handle its sales invoicesLately, business has been so good that it takes an extra 3 hours per night, plus every third Saturdayto keep up with the volume of sales invoicesManagement is considering updating its computer with a faster model that would eliminate all of the overtime processing . Current Machine New Machine Original purchase cost $14,900$ 25,200 Accumulated depreciation $6,600 Estimated annual operating costs $ 24,600 $19,600 Remaining useful life years 5 years sold now , the current machine would have a salvage value of $ 10,200 operated for the remainder of its useful life, the current machine would have zero salvage value . The new machine is expected to have zero salvage valueQuikCard processes credit card receipts for local banks. QuikCard processed 1,400,000 receipts in October. All receipts are processed the same day they are received. October costs were labor of $14,000 and overhead of $28,000. What is the cost to process 1,000 receipts?Can someone help me figure out this problem ? Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year? A. 90 days and 4.06 times B. 80 days and 4.06 times C. 70 days and 3.06 times D. 90 days and 3.06 times
