The Internal Audit (IA) Branch provides internal control and fraud prevention training to department managers across the organisation. Costs associated with each one-day training programs comprise a flat $2100 booking fee for the corporate trainingroom (which has a capacity of 100 participants) and the presenter's fee of S3500 per training session held. Additional costs include $45 per person for catering and $20 per person for course materials. The course is popular and has a waiting list.Required: (Round your answers to whole dollars).1.What is the cost of running a training session? $2.What price will the IA Branch charge each attendee if the prices are set at cost-recovery only? $3.What would be the contribution margin per attendee? $4.If the IA Branch could secure a larger training room with twice the practical capacity, and the booking fee for this larger room was $2500, how much would they be able to reduce the registration fee charged to attendees and still breakeven (assuming they remain with the cost recovery strategy)? S

As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…

Answered: The Internal Audit (IA) Branch provides…

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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The accounts department investigates all applications from new customers for credit sales. It has incurred a cost of £2,500 in January to investigate 100 customer applications. The accounts department has apportioned the cost as £1,250 each to divisions A and B because each has the same level of sales. The manager of division A has claimed that this is unfair because she only asked for 20 investigations while division B asked for 80 investigations. Which of the following statements is/are correct? • (i) Activity-based costing would charge £500 to division A and £2,000 to division B. ● (ii) Activity-based costing forecasts that the customer investigation costs for February will be £500 for division A and £2,000 for division B. (iii) Activity-based costing makes managers more aware of the costs incurred by their operations. ● a) (i) and (iii) only b) (i) and (ii) only c) (i), (ii) and (iii) d) (ii) and (iii) only
Bowflex Corporation is organized as a decentralized company. The strength division is organized as a Cost Center and reports the following costs: Line Item Full Year Budget Full Year Actuals Production Line Wages $20,000 $30,000 Production Line Salaries 40,000 55,000 Property Depreciation 25,000 20,000 Overhead Costs 15,000 12,000 Prepare a brief Cost Center Budget Performance Report AND include what the first action you would take as a financial controller would be.
Jade Ltd is now considering how to obtain a computer software. The director of Jade Ltd has noticed that over the last 20 years, many companies have spent a great deal of money internally developing new intangible assets, such as software. You have been asked by the director to provide your advice on the accounting treatments of the two possibilities below: (i) Employ its own programmers to write software that the company will use (ii) Purchase computer software externally, including packages for payroll and general ledger. Required: In accordance with IAS 38 / AASB 138 Intangible Assets, discuss whether internally developed intangible assets should be recognised, and explain the differ in the accounting treatments for the two possible options.
The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 330 bicycles. The average cost to the shop of a bicycle is $300. The owner knows that only 93 percent of the customers will be able to make their payments. To identify the remaining 7 percent, she is considering subscribing to a credit agency. The initial charge for this service is $540, with an additional charge of $6 per individual report. What is the amount of the net savings from subscribing to the credit agency? A. $3,790 B. $3,920 C. $4,080 D. $4,410 E. $4,950
The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $21 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $332,600 Benefits 75,600 Supplies 40,300 Office expenses 50,400 Office depreciation 45,400 Computer depreciation 30,200 Total $574,500 The department expects to lay out 24,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside. a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally…
Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and theother in Bernalillo, New Mexico. The owner of Biotechtron centralized the legal services functionin the Yuma office and had both laboratories send any legal questions or issues to the Yuma office. The legal services support center has budgeted fixed costs of $160,000 per year and a budg-eted variable rate of $65 per hour of professional time. The normal usage of the legal services cen-ter is 2,600 hours per year for the Yuma office and 1,400 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year.Required:1. Determine the amount of legal services support center costs that should be assigned to eachoffice. 2. Since the offices produce services, not tangible products, what purpose is served by allocat-ing the budgeted costs? 3. Now, assume that during the year, the legal services center incurred actual fixed costs of$163,000 and actual variable…
Barfield Corporation prepares business plans and marketing analyses for start-up companies in the Cleveland area. Barfield has been very successful in recent years in providing effective service to a growing number of clients. The company provides its service from a single office building in Cleveland and is organized into two main client-service groups: one for market research and the other for financial analysis. The two groups have budgeted annual costs of $440,000 and $810,000, respectively. In addition, Barfield has a support staff that is organized into two main functions: one for clerical, facilities, and logistical support (called the CFL group) and another for computer-related support. The CFL group has budgeted annual costs of $216,000, while the annual costs of the computer group are $654,000. Tom Brady, CFO of Barfield, plans to prepare a departmental cost allocation for his four groups, and he assembles the following information: Percentage of estimated dollars of work and…
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
Diversified Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,800), depreciation on office furniture ($2,000), utilities ($2,100), special telephone lines ($1,500), a connection with an online brokerage service ($2,700), and the salary of a financial planner ($10,900). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Read the requirements. Requirement 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $11,200. Begin by selecting the formula to compute the required sales in units to earn a target profit. = Target profit Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $11,200. Diversified must make trades to earn a monthly operating income…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 Westside 6,250 $ 240,000 2,700 $ 99,000 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required A Required B Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2…
I need d) please

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