Reference no: EM1349207
Roland Andersson is the manager of the Ekland Division of Ystad Industries. His one of several managers being considered for position of CEO, as the current CEO is retiring in a year.
All divisions use standard absorption costing; normal capacity is the basis for application of fixed overhead. Normal capacity in the Ekland Division is 40,000 units per quarter, and quarterly fixed overhead is $500,000. Variable production cost is $50 per unit. Ralph has been looking at the report for the first three months of the year and is not happy with the results.
Cost of Goods Sold
Beginning Inventory (10,000 Units) $625,000
Production Costs Applied 1,562,500
Total: 2,187,500
Less ending inventory 625,000
Gross Profit 1,562,500
Volume variance 187,500
Selling and general expenses 500,000
Net Income 875,000
The sales forecast for the second quarter is 25,000 units. Roland had budgeted second quarter production at 25,000 units but changes it to 50,000 units, which is practical capacity for a quarter. The sales forecasts for each of the last two quarters of the year are also 25,000 units. Costs incurred in the second quarter are the same as budgeted, based on 50,000 units of production.
For the second quarter,
1. Compute cost of good sold and gross profit
2. Compute variable costs of goods sold and contribution margin
3. Compute variance
4. Compute complete absorption income statement
5. Compute complete behavioral (contribution margin) income statement
Practicing input-output psychologist
: Compare and contrast the role of an I/O professor with that of a practicing I/O psychologist. What activities do they share in common? What distinguishes the two professions from each other?
|
Posting addresses primary forces for change
: Decreasing skill sets, social trends and the nature of the workforce, which is not a primary force for change in organizations?
|
Calculate the annual cost
: Deborah Tan is a listed nurse who earns $3250 per month after taxes. She has been viewing her savings strategies & current banking arrangements to estimate if she should make any changes.
|
Information assets to estimate for risk management
: If organization has three information assets to estimate for risk management as shown in accompanying data, which vulnerability must be evaluated for additional controls first?
|
Absorption costing-managerial accounting
: Roland Andersson is the manager of the Ekland Division of Ystad Industries. His one of several managers being considered for position of CEO, as the current CEO is retiring in a year.
|
Propose two methods that a company can gain an advantage
: Propose two methods that a company can gain a competitive advantage over other companies when striving to recruit job applicants. Determine whether technology has assisted or hindered the process.
|
What will the new water temperature be
: What minimum heat is needed to bring 138g water at 22°C to the boiling point and completely boil it away.
|
Problem of dichotomy
: Neither of the men in the cage was arrested. Both, in fact, were paid handsomely. How can this dichotomy be explained?
|
What can hr and senior leadership
: What can HR and senior leadership do to use power to move change levers and how can conflict be a powerful tool for organization change and growth?
|