Solution-Calculate the profits for each contract

Calculate the profits for each contract

Reference no: EM132561962

Transatlantic Corporation has 2 fixed price contracts for 2 different clients. The Transatlantic Corp. has enough capacity for both contracts but is not sure if they will be profitable.

See data below:

Customer Customer A Customer B

Component Type A222 B222

Contract Value ($) $27,000 $100,000

Contract Quantity 1,000 unit 2,000 units

Material cost/unit $15 $20

Molding time/batch 5 hours 7.5 hours

Batch Size 100 units 50 units

Yearly budgeted overheads are as follows:

Activity Cost Driver Cost Driver Cost Pool

Volume per year

Molding Molding hours 2,000 $150,000

Inspection Batches 150 $75,000

Production

Management Contracts 20 $125,000

Required:

Question 1: Calculate the activity-based costs and the profits for each contract

Reference no: EM132561962

Questions Cloud

Prepare the journal entries to record the missing events : Service Revenues included an advance of $21,080 for computer games to be delivered in March. Prepare the journal entries to record the missing events

What is the minimum price that executive suites could accept : What is the minimum price that Executive Suites could accept on the last-minute rooms? Executive Suites operates a 100-suite hotel in a busy business park.

Identify the components of computer : Identify the components of a computer that should be photographed in a crime scene, and explain why.

What will be the effect on net income : Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income

Calculate the profits for each contract : Calculate the activity-based costs and the profits for each contract. Transatlantic Corporation has 2 fixed price contracts for 2 different clients.

Compute the amount of vacation benefits : If they accumulate vacation time at the rate of 1.5 vacation days for each month worked, compute the amount of vacation benefits

Risks and benefits of offering intermediate sanction : Describe the risks and benefits of offering the intermediate sanction to this offender. Do the benefits outweigh the risks? Why or why not?

Evidence-collection unit process crime scene : List at least three advantages of having an evidence-collection unit process a crime scene instead of a patrol officer or detective.

Find the unit manufacturing cost of portable and vip filing : Find the unit manufacturing cost of Portable and VIP filing cabinets by using the company's current overhead costing procedures.

User Account

All Pages

Calculate the profits for each contract

Reference no: EM132561962

Reference no: EM132561962

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT