vgj The Gannett Company provides landscaping services to corporations and businesses. All its landscaping work requires Gannett to uselandscaping equipment. Its landscaping equipment has the capacity to do 14,000 hours of landscaping work. It currently anticipates getting ordersthat would utilize 13,200 hours of equipment time. Gannett charges $115 per hour for landscaping work. Cost information for the current expectedactivity level is as follows:(Click the icon to view the cost information.)Read the requirement.Begin by completing an analysis, and start by showing the computation of the company's contribution margin without the landscaping work fromRussell. Next, calculate the contribution margin of the special order. (Calculate the contribution margin for the special order assuming there are noconstraints on landscaping hours.)RevenuesVariable costs:Landscaping costsMarketing costsTotal variable costsContribution marginContribution Margin forExisting LandscapeContribution Margin forRussell CorporationCustomersLandscaping Work1,518,000792,00075,900867,900650,100

Contribution Margin for Existing Landscape CustomersUnderstanding the Revenue Generation:Gannett…

Answered: The Gannett Company provides…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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The Rainier Company provides landscaping services to corporations and businesses. 11-2 All its landscaping work requires Rainier to use landscaping equipment. Its land scaping equipment has the capacity to do 10,000 hours of landscaping work. It cur rently anticipates getting orders that would utilize 9,000 hours of equipment time from existing customers. Rainier charges $80 per hour for landscaping work. Cost information for the current expected activity level is as follows:
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-1 The Rainier Company provides landscaping services to corporations and businesses. All its landscaping work requires Rainier to use landscaping equipment. Its land- scaping equipment has the capacity to do 10,000 hours of landscaping work. It is currently utilizing 9,000 hours of equipment time. Rainier charges $80 per hour for landscaping work. Cost information for the current activity level is as follows: Revenues ($80 * 9,000 hours) Variable landscaping costs (including materials and labor), which vary with the number of hours worked ($50 per hour * 9,000 hours) Fixed landscaping costs Variable marketing costs (5% of revenues) Fixed marketing costs Total costs Operating income $720,000 450,000 108,000 36,000 72,000 666,000 $ 54,000 Rainier has just received a one-time only special order for landscaping work from Lasell Corporation at $60 per hour that would require 1,000 hours of equipment time. Should Rainier accept the offer even though revenue per hour is less than…
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The Everest Company provides landscaping services to corporations and businesses. All its landscaping work requires Everest to use landscaping equipment. Its landscaping equipment has the capacity to do 12,500 hours of landscaping work. It currently anticipates getting orders that would utilize 11,100 hours of equipment time. Everest charges $110 per hour for landscaping work. Cost information for the current expected activity level is as follows: E (Click the icon to view the cost information.) Required Begin by completing an analysis, and start by showing the computation of the company's contribution margin without the landscaping work from Tilman. Next calculate the contribution margin of the special order. Contribution Margin for Contribution Margin for Cost information Existing Landscape Tilman Corporation Customers Landscaping Work Revenues Revenues ($110 x 11,100 hours) 1,221,000 Variable costs: Variable landscaping costs (including materials and labour), which vary 754,800…
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
Calculate the relevant cost per unit.
Patterson Lawn Co. wants to determine the cost of each lawn care maintenance job. The Company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. Both operating departments are supported by two service departments, administrative and machine maintenance. Costs for each of these supporting departments are as follows: Administrative Machine Maintenance Total cost $576,000 $3,825,000 The following estimates that are related to the operating departments is as follows: Commercial Residential Total properties properties # of employees 68 60 128 # of customers 225 260 485 # of billable hours 23,000 22,000 45,000 Total overhead cost* $ 525,000 $ 450,000 $ 975,000 *Note that total overhead cost includes costs allocated from service departments and other overhead costs. The Company uses the…
Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluatingthe exhaust system division of the company and has come up with the following data for the year:net revenues are $1,000,000, variable costs are $300,000, and fixed costs are $400,000. Of the fixedcosts, controllable fixed costs are $100,000 and noncontrollable fixed costs are $300,000. What arethe controllable margin and total contribution by profit center (CPC), respectively?a. Controllable margin: $600,000; CPC: $400,000b. Controllable margin: $700,000; CPC: $300,000c. Controllable margin: $700,000; CPC: $100,000d. Controllable margin: $600,000; CPC: $300,000
Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM) The cost data follow General Purpose Equipment (GPE) Flexible Manufacturing System (FMS) 75,000 $125,000 $15.00 Annual contracted units Annual fixed cost Per unit vanable cost Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Dedicated Machine (DM) 75,000 $225,000 $14.00…
*Note: the correct answer is D per the professor. Can anyone explain the reasoning behind this? See below: ABC Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is currently used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours; the causal factor for the maintenance costs is repair hours. Assume the following information Power Maintenance Assembly Finishing Direct Costs $100K $150K $75K $50 KW Hours 10K 90K 100K Repair Hours 500 2500 2000 ABC decides to switch to Step-down method and cost allocation sequence is based on a ranking of percentage of services provided to other support departments, which of the following best describes this procedure? A. Power department’s costs are allocated to Assembly and Finishing, then Maintenance’s costs are…
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