Wildhorse's Nursery provides and maintains live plants in office buildings. The company's 131 customers are charged $145 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $33 per month. The company incurs $3,100 each month to maintain its equipment and service vans and $4,100 each month in salaries. Wildhorse pays a CPA firm $16 per customer for accounting services. (a) ✓ Your answer is correct. Prepare Wildhorse's contribution format income statement for the month (b) Revenue $ Variable Cost Contribution Margin Fixed Cust ✔ U Operating tromme IM Textbook and Media $ What is the expected monthly op 18995 6419 12576 7200 5376 are added?

Wildhorse's Nursery provides and maintains live plants in office buildings. The company's 131 customers are charged $145 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $33 per month. The company incurs $3,100 each month to maintain its equipment and service vans and $4,100 each month in salaries. Wildhorse pays a CPA firm $16 per customer for accounting services. (a) ✓ Your answer is correct. Prepare Wildhorse's contribution format income statement for the month (b) Revenue $ Variable Cost Contribution Margin Fixed Cust ✔ U Operating tromme IM Textbook and Media $ What is the expected monthly op 18995 6419 12576 7200 5376 are added?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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Jolly Cleaners offers residential and commercial cleaning services. Clients pay a fixed monthly fee for the service, but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning, the firm includes two managers who handle the administrative tasks (human resources, accounting, and so on) and one dispatcher, who assigns the cleaning employees to jobs on a daily basis. On average, residential clients pay $320 per month for cleaning services and the commercial clients pay $1,800 per month. A typical residential client requires 10 hours a month for cleaning and a typical commercial client requires 40 hours a month. In March, Jolly Cleaners had 30 commercial clients and 160 residential clients. Cleaners are paid $15 per hour and are only paid for the hours actually worked. Supplies and other variable costs are estimated to cost $5 per hour of cleaning. Other monthly costs (all fixed) are $49,000 SG&A, including managerial and dispatcher…
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. Which of the resources associated with purchasing can be classified as flexible resources? Forms, Postage and Supplies Which of the resources associated with purchasing can be classified as committed resources? PC system and clerks 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: fill in the blank 3 purchase orders Activity usage: fill in the blank…
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