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Red River Hospital’s controller estimates that the hospital uses 30 kilowatt-hours of electricity per patient day, and that the electric rate will be $.12 per kilowatt hour. The hospital also pays a fixed monthly charge of $1,250 to the electric utility to rent emergency backup electric generators.
Instructions:
Construct a flexible budget for the hospital’s electricity costs using each of the follow techniques.
Formula flexible budget.
Columar flexible budget for 30,000, 40,000, and 50,000 patient days of activity. List variable and fixed electricity costs separately.
Sudoku Company issues 19,000 shares of $10 par value common stock in exchange for land and a building. The land is valued at $231,000 and the building at $368,000. Prepare the journal entry to record issuance of the stock in exchange for the land and..
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Hall Company had sales in 2014 of $1,812,500 on 62,500 units. Variable costs totaled $875,000, and fixed costs totaled $402,600. A new raw material is available that will decrease the variable costs per unit by 29% (or $4.06). However, to process the..
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Company is replacing existing equipment with new equipment which can replicate what the existing machine does and also support a new product line. Old equipment was purchased 3 years ago for 100,000 and was being depreciated using a MACRS 5 year asse..
The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
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