If you give me wrong answer I will give you unhelpful rate on these general accounting question Tech Solvers produces 8-foot USB cables. During the past year, thecompany purchased 59,374,000 feet of plastic-coated wire at a priceof $0.28 per foot. The standard of The direct material for the cablesallows 8.56 feet of wire at a standard price of $0.26. During the year,the company used a total of 534,690 feet of wire to produce 69,4008-foot cables.Calculate Tech Solvers' direct materials quantity variance for theyear.

Step 1: Define Variance AnalysisIn cost accounting, variance analysis is an accounting analysis that…

Answered: Tech Solvers produces 8-foot USB…

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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Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of underwater markers at $3.84 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials $ 256,000 Direct labor 64,000 Overhead 192,000 Selling expenses 80,000 Administrative expenses 53,000 Total costs and expenses $ 645,000 A new wholesaler has offered to buy 33,000 packages for $3.37 each. These markers would be marketed under the wholesaler’s name and would not affect Jones Products’s sales through its normal channels. A study of the costs of this additional business reveals the following: Direct materials costs are 100% variable. Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times the usual labor rate. 25% of the normal annual overhead costs are fixed at any production level from 150,000…
Advance Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Advance Auto’s generator production operation, which is operated at a constant rate will require 1000 components per month throughout the year (12,000 units annually). Assume the ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding costs are 20% of the value of the inventory. Advance Auto has 250 working days per year and a lead time of 5 days. Answer the following inventory policy questions: What is the EOQ for this component? What is the reorder point? What is the cycle time? What are the total annual holding and ordering costs associated with your recommended EOQ?
Magnificent Modems has excess production capacity and is considering the possibility of making and selling security tokens. The following estimates are based on a production and sales volume of 1,000 security tokens. Unit-level manufacturing costs are expected to be $20. Sales commissions will be established at $1 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($60,000), rent on the manufacturing facility ($50,000), depreciation on the administrative equipment ($12,000), and other fixed administrative expenses ($71,950), will not be affected by the production of the security tokens. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (security tokens) on the basis of the number of units of product made (i.e., 5,000 modems and 1,000 security tokens). Required a. Determine the per-unit cost of making and selling 1,000 security tokens. Note: Do not round intermediate…
Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor.Required:1. Prepare a contribution format income statement for the game last year and compute the degree of operating leverage.2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:a. What is the expected percentage increase in net operating income for next year?b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year ata selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variablecosts are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consistmostly of payments to this contractor.Required:1. Prepare a contribution format income statement for the game last year and compute the degree ofoperating leverage.2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000games, or 20%, over last year). Compute:a. The expected percentage increase in net operating income for next year.b. The expected total dollar net operating income for next year. (Do not prepare an income statement;use the degree of operating leverage to compute your answer.)
Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011, Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard rate of $800 per pound and 15 minutes of direct labor time at a standard rate of $.18 per minute. During 2012, Rogers actually produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells for $50. Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' flexible budget variance? О 11,200 F О011,200 U 3,500 F 3,500 U
Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. Required: 1. 2. Prepare an income statement for the game last year and compute the degree of operating leverage. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Compute: a. b. The expected percentage increase in net income for next year. The expected total dollar net income for next year.
Rundle Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpensive calculator. The company's chief accountant recently prepared the following income statement showing annual revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 32,000 and 72,000 units per year. Revenue (35,000 units x $12.00) Unit-level variable costs Materials cost (35,000 x $3.00) Labor cost (35,000 x $2.00) Manufacturing overhead (35,000 x $0.20) Shipping and handling (35,000 x $0.28) Sales commissions (35,000 × $2.00) Contribution margin Fixed expenses Advertising costs Salary of production supervisor Allocated companywide facility-level expenses Net loss Required $ 420,000 (105,000) (70,000) (7,000) (9,800) (70,000) 158,200 (27,000) (67,000) (83,000) $ (18,800) a. A large discount store has approached the owner of Rundle about buying 6,000…
Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at $13 each. Childs Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Western Jeans Co. Question Content Area a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderJuly 6 Line Item Description Reject Order(Alternative 1) Accept Order(Alternative 2) Differential Effects(Alternative 2) Revenues $Revenues…
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Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 4,650 machine- hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $8.30 per box, provided that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials Direct labour (% hour at $6.80/hour) Total manufacturing overhead Total unit product cost Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $1.70 per direct labour-hour. Without the order, Anchor would have enough business to operate at 3.720 direct labour-hours in each of the next two months. The regular selling price of the tool boxes is $11.30. A sales commission of 50 cents per unit is paid to sales representatives on all regular…
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