The contribution margin ratio of the Parts Department of Buffalo Valley Repair is 40 percent. Traceable fixed costs of the Parts Department average $80,000 per year, and the department's projected revenue for the upcoming year is $300,000 What is the department's expected responsibility margin in the upcoming year? Responsibility margin

The contribution margin ratio of the Parts Department of Buffalo Valley Repair is 40 percent. Traceable fixed costs of the Parts Department average $80,000 per year, and the department's projected revenue for the upcoming year is $300,000 What is the department's expected responsibility margin in the upcoming year? Responsibility margin

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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The contribution margin ratio of the Parts Department of Buffalo Valley Repair is 40 percent. Traceable fixed costs of the Parts Department average $ 80,000 per year, and the department's projected revenue for the upcoming year is $ 300,000 What is the department's expected responsibility margin in the upcoming year?
The manager of Dukey's Shoe Station estimates operating costs for the year will include $465,000 in fixed costs. Required: a. Find the break-even point in sales dollars with a contribution margin ratio of 50 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 30 percent. c. Find the sales dollars required to generate a profit of $250,000 for the year assuming a contribution margin ratio of 50 percent. Complete this question by entering your answers in the tabs below. Required A Required B Required C Find the break-even point in sales dollars with a contribution margin ratio of 50 percent. Break-even point in sales dollars Find the break-even point in sales dollars with a contribution margin ratio of 30 percent. Break-even point in sales dollars Required A Required B Required C Find the sales dollars required to generate a profit of $250,000 for the year assuming a contribution margin ratio of 50 percent. Sales dollars required
The overhead costs for a company are presently $Xper month. The management team of the company, in cooperation with the employees, is ready to implement a comprehensive improvement program to reduce these costs. If you (a) consider an observation of actual overhead costs for one month analogous to an output unit, (b) estimate the overhead costs for the first month of program implementation to be 1.15Xdue to extra front-end effort, and (c) consider a 90% improvement curve applicable to the situation, what is your estimate of the percentage reduction in present overhead costs per month after 30 months of program implementation?
cost accounting; The manager of Dukey's Shoe Station estimates operating costs for the year will include $495,000 in fixed costs. Required; a. Find the break-even point in sales dollars with a cotribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 20 percent
The fixed costs of operating the Srepta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Budgeted hours Actual hours Building and grounds 10,000 9,800 Administration 2,500 1,600 Customer Service 18,000 22,500 IT support 7,500 7,800 Total 38,000 41,700 Assume that budgeted maintenance-hours are used to calculate the allocation rates. 1. Using a single-rate allocation and budgeted usage, how much will each department be allocated? 2. Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
A responsibility center's contribution margin ratio is 40%, and its common fixed costs are currently $100,000. If the center's sales increase by $300,000 and its common fixed costs increase by $20,000, its responsibility margin will increase by $_? -Why is the answer $100,000?
Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $72,930 per year Variable costs (supplies): $1.30 per maintenance hour Estimated usage by: Assembly Department 4,900 Fabricating Department 6,200 Packaging Department 11.000 Total maintenance hours 22,100 Actual usage by: Assembly Department 3,425 Fabricating Department 6,300 Packaging Department 10,200 Total maintenance hours 19,925 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments? when required, round your answers…
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $80,850 per year Variable costs (supplies): $1.3 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearlyhours MonthlyPeak Hours Assembly Department 4,700 250 Fabricating Department 7,000 1,375 Packaging Department 11,400 875 Total maintenance hours 23,100 2,500 Actual usage for the year by: Assembly Department 3,250 Fabricating Department 7,100 Packaging Department 10,600 Total maintenance hours 20,950 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the nearest cent.$fill in the blank 1 per…
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $67,260 per year Variable costs (supplies): $1.45 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearlyhours MonthlyPeak Hours Assembly Department 5,000 345 Fabricating Department 6,700 1,150 Packaging Department 11,100 805 Total maintenance hours 22,800 2,300 Actual usage for the year by: Assembly Department 3,750 Fabricating Department 6,800 Packaging Department 10,300 Total maintenance hours 20,850 Required: 1. Calculate a variable rate for the Maintenance Department. Round your answer to the…
The managet of Dukey' s Shoe Station Estimates operating costs for the year will include $450,000 in fixed costs. A. Find the break-even point in sales dollars with a contribution margin ration of 40 percent B. Find the break-even point in sales dollars with a contribution margin ration of 25 percent C. Find the sales dollar required to generate a profit of $100,000 for the year assuming a contribution margin ratio of 40 percent
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 93 per hour Annual labor hours 6,410 hours Annual materials purchases $ 1,237,750 Materials purchasing, handling, and storage $ 247,550 Overhead for depreciation, taxes, insurance, etc. $ 711,510 Target profit margin for both labor and materials 25 % What is the total price for a project requiring 220 direct labor hours and $210,000 of materials
SIS Technologies currently allocates insurance costs on the basis of direct labor hours. If the direct labor hours for departments A, B, and C are expected to be 3000, 9000, and 5000, respectively, this year, determine the allocation to each department based on an indirect cost budget of $34,000.