Supreme Furniture needs to purchase glass panes to make glass top coffee tables. Last year SupremeFurniture has two suppliers, Bobux and Twinkle, with the following supplier related information:Cost per unit of Number of activities Number of activitiesactivity driver for BobuxSupplier related activitiesReturning poor quality glass panes $120 per pane 25 panesProcessing purchase ordersReceiving and inspecting deliveries S50 per delivery 15 deliveriesSupplier auditRework due to poor quality glass $100 per table 60 tablesPurchase price per glass panefor Twinkle12 panes40 orders15 deliveries2 audits15 tables$150780$20 per order 12 orders$1000 per audit 5 audits$100Number of glass panes purchased446Calculate the supplier performance index of Bobux (round your answer to 2 decimal places).Answer.

Activity based costing means where the product is valued on the basis of actual direct material ,…

Answered: Supreme Furniture needs to purchase…

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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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 $…
Paper Roses Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for P6.00 each. The company normally sells its shirts for P12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials P2.00 Direct labor 0.50 Variable factory overhead 1.50 Fixed factory overhead _2.50 Total cost per unit P6.50 Should Paper Roses Boutique accept the special order made by the college? Show computations, but a formal differential analysis report is not required.
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below: Annual sales volume Velcro 101,800 Metal 203,600 Nylon 407,200 Unit selling price $ 1.65 $ 1.50 $ 0.85 Variable expense per unit $ 1.25 $ 0.70 Contribution margin per unit $ 0.40 $ 0.80 $ 0.25 $ 0.60 Total fixed expenses are $407,200 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $247,200 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. The company's managers would like…
Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.14 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 12,160 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.46. Packaging would cost $0.07 per portion, and fruit would cost $0.12 per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into…
Yardwork Tools Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decision about whether to produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan. Data concerning the decision are as follows: Expected annual sales of tools (in units) 660,000 Average selling price of tools $11 Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) 27,300 Current exchange rate 9,100 NTD = $1 Variable manufacturing costs $2.85 per unit Incremental annual fixed manufacturing costs associated with the new product line $310,000 Variable selling and distribution costsª $0.50 per unit Annual fixed selling and distribution costsª $250,000 ªSelling and distribution costs are the same regardless of whether the tools…
Costs-of-quality analysis. Safe Travel produces car seats for children from newborn to 2 years old. Safe Travel’s only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection. Inspection costs $5.00 per car seat, and repairs cost $1.00 per car seat. All 200,000 car seats were inspected last year, and 5% were found to have problems with the stitching. Another 1% of the 200,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Safe Travel and repaired. Shipping costs are $8.00 per car seat, and repair costs are $1.00 per car seat. Negative publicity will result in a loss of future contribution margin of $100 for each external failure.
St.Ivory Hospital has been hit with a number of complaints about its food service from patients, employees as well as cafeteria customers. These complaints, coupled with a very tight local labor market, have prompted the organization to contact FINS about the possibility of an outsourcing arrangement. The hospital's business office has provided the following information for food service for the year just ended: food costs - $890,000; labor - $85,000; variable overhead - $35,000; allocated fixed overhead - $60,000; and cafeteria net income - $80,000. Conversations with FINS personnel revealed the following information: • FINS will charge St. Ivory Hospital $14 per day for each patient served. Note: This figure has been "marked up" by FINS to reflect the firm's cost of operating the hospital cafeteria. • St. Ivory's 250-bed facility operates throughout the year and typically has an average occupancy rate of 70%. • Labour is the primary driver for variable overhead. If an outsourcing…
Determine the company's total cost of goods completed and COGS in December. Total cost of goods completed and COGS 69 eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (d1) How much gross margin did the company earn in December? (Round percentage answer to 2 decimal places, e.g. 52.75%.) Gross margin Gross margin percentage $ % If Betty had a goal of earning a 35% gross margin, did she reach her goal? .she eTextbook and Media Save for Later ✓ reach her goal, because % is than her goal of 35%. Attempts: 0 of 2 used Submit Answer
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A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Cost of Quality Report Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $fill in the blank 1 fill in the blank 2 % fill in the blank 3 % Appraisal fill in the blank 4 fill in the blank 5 fill in the blank 6 Internal failure fill in the blank 7 fill in the blank 8 fill in the blank 9 External failure fill in the blank 10 fill in the blank 11 fill in the blank 12 Totals $fill in the blank 13…
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Operating Cost Month January February March April Number of Bottles Sold 1,080 $ 10,570 1,330 15,670 1,850 16,050 2,480 19,680 3,490 27,350 3,610 34,750 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (ya+ bx) for estimating Garfield's operating costs. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5…

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