TopAd, a new advertising agency with 10 employees, has received a contract to promote a new product. The agency can advertise by radio and television. The following table gives the number of people reached by each type of advertisement and the cost and labor requirements. Exposure (in millions of persons) Cost (in thousands of dollars) Assigned employees Data/min advertisement Radio 8 1 Television 8 24 22 The contract prohibits TopAd from using more than 6 minutes of radio advertisement. Addi- tionally, radio and television advertisements need to reach at least 45 million people. TopAd has a budget goal of $100,000 for the project. How many minutes of radio and television advertise- ment should TopAd use?

TopAd, a new advertising agency with 10 employees, has received a contract to promote a new product. The agency can advertise by radio and television. The following table gives the number of people reached by each type of advertisement and the cost and labor requirements. Exposure (in millions of persons) Cost (in thousands of dollars) Assigned employees Data/min advertisement Radio 8 1 Television 8 24 22 The contract prohibits TopAd from using more than 6 minutes of radio advertisement. Addi- tionally, radio and television advertisements need to reach at least 45 million people. TopAd has a budget goal of $100,000 for the project. How many minutes of radio and television advertise- ment should TopAd use?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 2MC: Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new...

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Atlantis Company is placing an ad in the local paper to advertise its products. The ad will run for one week at a total cost of P5, 500. Atlantis Company has four categories of products as follows: Product Category % of floor space Expected sales value A 20 35,000 B 15 15,000 C 45 64,500 D 20 25,500 A. What amount of advertising cost should be allocated to product category A, assuming Atlantis allocates based on percent of floor space occupied? B. What amount of advertising cost should be allocated to product category B, assuming Atlantis allocates based on percent of floor space occupied?
Can u please help with Problem
Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,200 per employee and the number of employees to be trained is 400. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation.The expected number to be trained in each year and the expected development and training costs follow. Number ofemployees Developmentand trainingcosts incurred 2019 125 $ 65,000 2020 200 80,000 2021 75 30,000 Total 400 $175,000 For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using...1. the number of employees trained as a measure of the value provided to the customer.Note: Round answers to the nearest dollar. Year 2019 2020 2021 Total…
Zachary manufacturing company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $121600 per year to inspect completed tents before they are shipped to customers. assume that the company completed 1,530 tents in January and 1,240 tents in February. For the entire year, the company expects to produce 19000 tents. required c) If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? D) How much of the expert's salary should be allocated to tents produced in January and February? If the cost objective is to determine the cost per tent is the expert's salary a direct or an indirect cost?
Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Advertising cost for monthly television ads $ 5,800 Attachable keyboard 19,800 Insurance for delivery truck 580 Factory supervisor's salary 3,550 Marketing manager's salary 3,250 Assembly worker wages 24,000 Miscellaneous soldering material used to seal case 1,050 Hourly wages for factory security guard 2,200 CEO's salary 7,400 Speakers 5,200 Required: Determine each of the following: 1. Direct material 2. Direct labor 3. Manufacturing overhead 4. Total manufacturing cost 5. Total period cost 6. Total variable cost 7. Total fixed cost
The choices are 660, 900, 1,000 and 1,260
Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct materials and direct labor for each sofa are $140. In addition, supervision and other fixed overhead costs average $160 per sofa. a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $900? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity? Complete this question by entering your answers in the tabs below. Req A1 Show Transcribed Text Req A1 What is the impact on operating income from accepting the special order? Operating income would per sofa. Yes ONO Reg A2 Req A1…
The James Company manufactures widgets that sell for $120 each. The company's unit cost for each widget is as follows: A company in another state has offered to purchase 1,000 widgets from James Company at a cost of $90 each. If James were to accept this special order, no additional Fixed Manufacturing Overhead costs would be incurred. Should James accept this special order? Show relevant calculations.
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Television Radio Online Audience per advertisement 100,000 16,000 35,000 Cost per advertisement $1,500 $250 $650 Maximum media usage 10 24 14 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. (a) If the promotional budget is limited to $18,400, how many commercial messages should be run on each medium to maximize total audience contact? If your answer is zero enter "0". No of commercial Advertisement Alternatives messages Television Radio Online What is the allocation of the budget…
Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:factory space: $250,000 per yearinsurance: $47,000 per yearsupervisor salaries: $125,000 per yearmaterials: $5.00 per lampdirect labor: $2.69 per lamprecycling charge: $0.37 per lampRoadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)
Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct materials and direct labor for each sofa are $140. In addition, supervision and other fixed overhead costs average $160 per sofa. Required: a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $900? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?
Can you please solve this accounting problem?