The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Estimated average income $45,730.58 $60,103.80 Average investment 326,647.00 200,346.00 Ca, Machines B and C have the same preferred average rate of return b. Machine C C. Machine Is d. Machine A Machine C $74,639,55 497,597.00
Q: If the plant manager uses the average cost per unit to predict total costs, what would the forecast…
A: Variable cost is the cost which changes with change in production volume and it is relevant in…
Q: Jay Corporation has provided data from a two-year period to aid in planning. The Controller has…
A: The question is based on the concept of Cost Accounting.
Q: Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes…
A: Variable cost per unit using high-low method = (Highest Cost - Lowest Cost) / (Highest Activity -…
Q: Product A Product B Product C elling price per unit P30 100% P20 100% P15 100% ariable costs per…
A: Solution: Computation of contribution margin per machine hour A B C Contribution margin per…
Q: Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C.,…
A: The maintenance cost can be break down into variable and fixed cost component using the high low…
Q: Required information [The following information applies to the questions displayed below] The…
A: One of the profitability ratios that illustrates the amount of returns produced on average operating…
Q: Required information [The following information applies to the questions displayed below.] Data…
A: The costs of service departments are allocated to the operating departments because they exist to…
Q: A. The total cost of all orders. B. The total quantity of airframe fasteners purchased. C. The total…
A:
Q: Answer the following problem on separate paper making sure to show all supporting work. For written…
A: The axis of symmetry is the straight line that divides a parabola into symmetrical halves.
Q: Brandon Technology makes two models of a specialized sensor for the aerospace industry. The…
A: Variable costs are those costs which changes along with change in activity level. Contribution…
Q: Pix Paper Inc. produces photographic paper for printing digital images. One of the processes for…
A: Computation of Cost per pound - Working
Q: You are asked to assist in a cost estimate for the production of new shipping containers. Based on…
A: When productivity increases, the total cost per unit decreases. The unit cost per unit can be…
Q: Required information [The following information applies to the questions displayed below] The…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…
Q: ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and…
A: WN1- Calculation of Variable cost per unit: Deluxe Regular Direct material 260 150 Direct…
Q: Interpreting regression results. Spirit Freightways is a leader in transporting agricultural…
A: Conduct a regressive analysis using monthly data of operating costs on freight miles.
Q: Classify each of the cost items (a-h) into one of the business functions of the value chain.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: An automaker is considering installing a three-dimensional (3-D) computerized styling system at a…
A: Given information: Initial cost of the machine is $180,000. New machine depreciates in 5 years MACRS…
Q: Describe the circumstances under which the firm should employ each of the two manufacturing methods.…
A: Manufacturing cost is defined as a part under the cost accounting, which helps the manufacturing…
Q: Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C.,…
A: Variable component of maintenance costs : Variable maintenance costs change with the productivity of…
Q: Jerrod: Good. Here’s what I want you to do. I see in your analysis that you don’t project greater…
A: It is noted that the analysis conducted shows a present value index of 0.75 It is also noted that…
Q: Cost Estimation; High-Low Method; MAPE Horton Manufacturing Inc. produces blinds and other window…
A: High low methodThis method is used by companies to divide total cost into fixed cost part and…
Q: Fanning Academy is a profit-oriented education business. Fanning provides remedial training for high…
A: Solution Total cost is the sum of the expenses a company needs to manufacture a specific level of…
Q: Ontroller is accumulating data to be used in preparing its annual profit plan fc f the firm's…
A: Variable component of maintenance costs : Variable maintenance costs change with the productivity…
Q: Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C.,…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…
Q: Kagle design engineers are in the process of developing a new “green” product, one that will…
A: The objective of the question is to calculate the post-purchase cost for each design, Design A and…
Q: enny is compiling a list of costs incurred so far on a project. She must categorize these costs so…
A: Cost Accounting -The gathering, handling, and assessment of operational data is the focus of cost…
Q: I am doing an activity table on ovens. I know the formula is: activity pool cost / activity base =…
A: It is the method of assigning indirect costs to the product and services. For example, assigning…
Q: Almed Products has determined that the number of machine hours worked (MH) drives the amount of…
A: Manufacturing overhead are all type of indirect expenses being incurred for manufacturing purpose.…
Q: Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: st neral, and administrative cost d costs intenance neral, and administrative 34.00 6.60 3.50 $…
A: Master budget is static or planning budget. It has two categories- Operational and FInanacial.…
Q: than Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has…
A: The variable cost is the cost that changes with the level of activity. The maintenance cost…
Q: The Connors Company has assembled the following data pertaining to certain costs that cannot be…
A: Variable cost per unit=Highest Activity Cost-Lowest Activity CostHighest Activity Units-Lowest…
Q: TASK A. Problem Solving. Analyze the given proBIBs anu usU DIe for your answers. D Amore…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Kentfield Advisory Services (KAS) is a large management consulting firm organized into two groups:…
A: Cost allocation is the process wherein cost is divided between the cost object on the basis of…
Q: Howard Cooper, the president of Stuart Computer Services, needs your help. He wonders about the…
A: Variable Cost :— It is the cost that changes with change in units. The variable cost per unit is…
Q: 3) Data Master is a computer software consulting company. Its three major functional areas are…
A: According to the question given, we need to prepare the overhead allocation summary.It is a cost…
Q: Data Master is a computer software consulting company. Its three major functional areas are computer…
A: It is a cost allocation technique used in managerial accounting. This method involves allocating…
Q: A consulting company has two departments, Corporate and Government. Conputer support is common to…
A: Allocation base is the basis on which cost accounting allocates overhead costs.an allocation base…
Q: International Machine Manufacturing Company is preparing to build a new plam by considering three…
A: The best process would be the process with least cost at annual contracted units
Q: Adams Corporation evaluates divistonal managers based on Return on Investment (ROI) and nas provided…
A: Return on Investment/Residual Income ROI provide the profitability of any number of investments…
Q: Green Shade manufactures insulated windows. The firm’s repair and maintenance (R&M) cost is mixed…
A: Answer - Part A - USING HIGH LOW METHOD Computation of total fixed cost component of the repair and…
Q: If one additional worker could be hired, to which resource should this worker be assigned? Calculate…
A:
Q: Brandon Technology makes two models of a specialized sensor for the aerospace industry. The…
A: CONTRIBUTION MARGIN PER UNIT Contribution Margin Per Unit is the Difference between Selling Price…
Q: Required: 1. What is the cost equation for maintenance costs using the high-low method? (Round…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…
Q: e production department is proposing the purchase of an automatic insertion machine. It has…
A: In this question, we will calculate the average rate of return, For determining the average rate of…
Step by step
Solved in 2 steps
- I know there is a Bartleby on this, but the commas are all out of place and I'm still confused. Could you give a more in-depth solution and explain on how to calcultae FCF, specifically with excel functions? We are entering the widget business. It costs $500,000, payable in year 1, to develop a prototype. This cost can be depreciated on a straight-line basis during years 1-5. Each widget sells for $40 and incurs a variable cost of $20. During year 1 the market size is 100,000, and the market size is growing at 10% per year. Profits are taxed at 40%, but there are no taxes on negative profits. a) Given our other assumptions, what market share (in %) is needed to ensure the total free cash flow (FCF) of $0 over the five year period? Note: FCF during a year equals after-tax profits plus depreciation minus fixed costs (if any).b) Describe how an increase in percent market growth rate changes total FCF over years 1-5.c) Describe how simultaneous changes in percent market share and changes…Convert the accompanying database to an Excel table to find: a.The total cost of all orders. b.Thetotal quantity of airframe fasteners purchased. c. The total cost of all orders placed with Manley Valve. Question content area bottom Part 1 a. The total cost of all orders is $?????? enter your response here.I need some help with this one. Return on Investment and Residual Income Skyview Company has two divisions, Residential Skylights and Automotive Sunroofs. The manager of the Residential Skylights Division is evalu- ated based on return on investment (ROI). The manager of the Automotive Sunroofs Division is evaluated based on residual income.The required return is 12% and the return on investment has been 16% for the two divisions. Each manager is currently considering a project with the following projections (in$000s): Residential Skylights Automotive Sunroofs Projected operating income $350 $560 Investment in operating assets $2,500 $4,000 Required a. What is the Residential Skylights’ ROI? b. What is Automotive Sunroofs’ residual income? c. According to the current evaluation system for managers, which manager(s) would have incen- tive to undertake the project
- Check each of the following that are sunk costs. Group of answer choices A machine then was used to research a new product that can be used in the production process if we go forward with the project, or sold if we do not The market value of the land on which we plan to build a factory The original cost of the land on which we plan to build a factory The amount we paid our research scientists to determine the feasibility of a product we are now considering. The cost to construct a factory we will build if we launch the a new productCyberBest started to develop an anti-malware application on August 1, 20X1. It reached technological feasibility on March 1, 20X2, and the application was released on April 30, 20X2. Below are costs to develop the application. August 1 through December 31, 20X1 $5,000,000 January 1 through February 28, 20X2 1,600,000 March 1 through April 30, 20X2 1,800,000 Determine the amount of asset and the amount of R&D expenses relating to the development of this anti-malware application. $1,800,000 asset, and $6,600,000 R&D expenses $5,000,000 asset, and $3,400,000 R&D expenses $6,600,000 asset, and $1,800,000 R&D expenses $3,400,000 asset, and $5,000,000 R&D expensesGarrell Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Time-driven activity rate (cost per unit of activity) Activity cost pool: Receiving Calls Resolving Issues Settling Disputes Cost Object Data: Number of calls received Number of issues resolved Number of disputes settled Customer P 31 17 1 $5.46 $8.58 $13.26 Customer Q 21 10 Required: Using time-driven activity-based costing, determine the total Customer Support Department cost assigned to cach customer.
- Cost of the three alternative methods of processing work in an office is stated below:A-Manual: Total fixed cost PM=3,000Variable cost per case=48B-Semi-Automatic:Total fixed cost PM=9,000Variable cost per case=28C-Fully automatic:Total fixed cost PM=25,000Variable cost per case=8Identify the indifference and state your results. For what volume of cases it will be preferred between each of A, B and C?An industrial engineer is tasked to determine the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rate and total production cost per hour, he summarized his findings as shown in the table below (Table 1). The engineer then talked to the firm’s marketing specialist, who provided these estimates of selling price per casting as a function of production output (Table 2). What production rate would you recommend to maximize total profit? Table1 Total cost/hour $1,000 $2,600 $3,200 $3,900 $4,700 Castings produced/hr 100 200 300 400 500 Table 2 Selling price/casting $20.00 $17.00 $16.00 $15.00 $14.50 Castings produced/hr 100 200 300 400 500Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
- ! Required information [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Compute return on investment for each investment center. Which center performed the best based on return on investment? Performance Return on Investment Based on ROI Income $ 6,000,000 2,295,000 1,050,000 Complete this question by entering your answers in the tabs below. Investment Center Average Assets $ 26,900,000 15,300,000 13,600,000 Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Cameras Phones Computers Income Average Assets $ 6,000,000 $ 26,900,000 2,295,000 15,300,000 1,050,000 13,600,000The Chopin Company has decided to introduce a new product. The new product can be manufactured by either a computer-assisted manufacturing (CAM) or a labor-intensive production (LIP) system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs for each of the two methods are as follows. CAM System: Direct Material = $5.0 Direct Labor (DLH) = 0.5 DLH X $12 = $6 Variable Overhead = 0.5DLHx$6 = $3 Fixed Iverhead* = $ 2,440,000 LIP System: Direct Material = $5.6 Direct Labor (DLH) = 0.8 DLH X $9 = $7.2 Variable Overhead = 0.8 DLH X $6 = $4.8 Fixed Overhead* = $1,320,000 *These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company’s marketing research department has recommended an introductory unit sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit sold. (Ignore income taxes.) Required: Calculate the estimated…Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly…