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Problem 1: Smith Company manufactures fish tanks. One of the fish tanks that the company produces is a 2.6 gallon fish tank that the company sells for $37.50. The fish tanks are manufactured in an outdated fish tank manufacturing facility that is labor intense, relying heavily on direct labor workers. Variable costs are high, totaling $22.50 per 2.6 gallon fish tank of which 60% is direct labor cost. Last year the company sold 40,000 2.6 gallon fish tanks and had $480,000 in fixed expense associated with the 2.6 gallon fish tank. Compute a the contribution ratio, compute a break even in number of 2.6 gallon fish tanks and compute the degree of operating leverages of last years level of sales.
Meliana, Inc. allocates the support-department costs using the direct method. The predetermined overhead rate for the producing departments are
Develop a cost estimating equation for total manufacturing overhead. Develop a predetermined rate for 2018, assuming 25,000 direct labor hours.
manufacturing overhead of $240,000, the company's beginning work in process must have been - If supplemental information disclosed raw materials used in product
Mardist Corporation has sales of USD100,000, variable expenses of USD75,000, fixed expenses of USD30,000, and a net loss of USD5,000. How much would Mardist have to sell to achieve a profit of 10% of sales?
Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.
Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume.
Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory.
Identify the company-specific factors in point form that are absolutely critical to the success of the organization. Prepare the budget submission to Kevin.
Compute the budgeted cash payments for purchases for March. Compute budgeted Accounts Receivable for March 31. Compute the budgeted cash collections
Discuss the use the payback period and the accounting rate of return methods to evaluate investment opportunities. Determine Capital Budgeting
If the risk-adjusted discount rate is 16 percent for each of the next three years, what is the value of the firm or how much can be sold today for a price of
Calculate the overhead budget for the coming year. A company produces Products PS and TG and has budgeted to produce 6,000 units of Product PS
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