Calculate the actual amount of contribution margin

Assignment Help Managerial Accounting
Reference no: EM13960563

K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creation package that it offers for a flat fee of $600.This package includes everything that a business would need to have a simple but functional Web site built. K&J estimates that each of these Web sites should take, on average, 6 hours of Web designer time. K&J pays its Web design employees an average of $35 per hour. Last month, K&J sold and built 125 Web sites for $600 each. Web design employees worked a total of 750 hours at a total payroll cost of $28,500.

Required:

a. Calculate the labor rate and efficiency variances for the past month.

b. Calculate the standard amount of contribution margin (sales price less variable labor cost) that K&J would expect to make on an average Web site.

c. Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month. 

Reference no: EM13960563

Questions Cloud

Programming problem for optimization of an objective : This is liner programming problem for optimization of an objective function subject to some liner constraints. There are two profit maximization problems and two cost minimization problems.
What do you think about this given statement : Secular humanists feel that "The good is not what some abstract God dictates, but what contributes to the liberation, growth, and progress of human beings
How do we distinguish relations from functions : How do we distinguish relations from functions? Reduce the following Boolean product to zero OR a fundamental product: xyx'z.c Write the dual of the following Boolean equation: a+a'b = a+b.
Draw the corresponding probability histogram. : What is the probability that at least two of the four selected have earthquake insurance?
Calculate the actual amount of contribution margin : Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month.
Why do christians consider the bible to be god''s word : Why do Christians consider the Bible to be God's Word? or What does it mean that Christians believe the Bible is God's Word
What fraction is this of its weight at surface of the earth : A 2150 kg satellite used in a cellular telephone network is in a circular orbit at a height of 780 km above the surface of the earth. What is the gravitational force on the satellite? What fraction is this of its weight at the surface of the earth..
When would activity based costing give more accurate costs : When would activity-based costing give more accurate costs than traditional costing systems?
What insights can be gained from this given video : What insights can be gained from this video? In what ways do immediate and delayed gratification apply to worldviews and lifestyle? Choose one worldview studied in this course and discuss its approach to sexuality and compare it to your worldview

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd