(1) The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. To compute: The ratio of cost to sales ratio for company A.

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Answer 1

Question

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Expert Solution & Answer

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Standard Quantity Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound $4.13 Direct labor 0.50 hours $34.50 per hour $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 overhead During March, the following activity was recorded by the company: -The company produced 2,500 units during the month. -A total of 19,500 pounds of material were purchased at a cost of $13,680. -There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,720 pounds of material remained in the warehouse. -During March, 1,100 direct labor-hours were worked at a rate of $31.50 per hour. -Variable manufacturing overhead costs during March totaled $14,161. -The direct materials purchases…

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Information for Southgate Company's direct labor costs for the month of March 2021 was as follows: Actual direct labor hours: 42,000 hours Standard direct labor hours: 40,000 hours Total direct labor payroll: $315,000 Direct labor efficiency variance: unfavorable $5,000 What is Southgate's direct labor price (or rate) variance?

Answer 2

Question

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Answer 6

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

Answer 7

Chapter 4, Problem 2AA

To determine

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

Answer 8

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

Answer 9

To determine

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

Answer 10

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Answer 11

To determine

(3)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.

To discuss:

Company with higher cost ratio.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 4 - Prob. 1MCQ Ch. 4 - Prob. 2MCQ Ch. 4 - All of the following are examples of batch-level...Ch. 4 - Prob. 4MCQ Ch. 4 - Prob. 5MCQ Ch. 4 - Why are overhead costs allocated to products and...Ch. 4 - What are three common methods of assigning...Ch. 4 - Why are direct labor hours and machine hours...Ch. 4 - What are the advantages of using a single plant...Ch. 4 - The usefulness of a single plant wide overhead...

(1) The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. To compute: The ratio of cost to sales ratio for company A.

Solution Summary: The author explains the cost-to-net-sales ratio, which should always be low, and the total cost of goods sold against total sale amount.

Videos

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.

Want to see the full answer?

Chapter 4 Solutions

(1) The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. To compute: The ratio of cost to sales ratio for company A.

Solution Summary: The author explains the cost-to-net-sales ratio, which should always be low, and the total cost of goods sold against total sale amount.

Videos

(1) The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. To compute: The ratio of cost to sales ratio for company A.

(2) The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. To compute: The ratio of cost to sales ratio for company G.

Want to see the full answer?

Chapter 4 Solutions

(1)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company A.

(2)

The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.

To compute:

The ratio of cost to sales ratio for company G.