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Lesley Chomski is the supervisor of the new product division of MCO Corporation. Her annual bonus is based on the success of new products and is computed on the number of sales that exceed each new product's projected break-even point. In reviewing the computations supporting her most recent bonus, Chomski found that although an order for 7,500 units of a new product called R56 had been refused by a customer and returned to the company, the order had been included in the calculations.
She later discovered that the company's accountant had labeled the return an overhead expense and had charged the entire cost of the returned order to the plant-wide overhead account. The result was that product R56 appeared to exceed break-even by more than 5,000 units and Chomski's bonus from this product amounted to over $800. How do you think Lesley Chomski should respond after the discovery regarding her own bonus? What actions should Chomski take? Discuss how break-even for the product R56 was calculated and if this was correct or not. Then discuss the ethical dilemmas to the case.
Compute the annual depreciation charges for machine under the double-declining-balance method.
grodski co. produces and distributes semiconductors for use by computer manufacturers. grodski co. issued 360000 of
1.mayfair corporation has outstanding 110000 shares of 1 par value common stock as well as 29000 shares of 13.5 100 par
flint fabricators inc. machines metal parts for the automotive industry. under the traditional manufacturing approach
motoran inc. is contemplating the acquisition of a competitor tortoran corp. for 25 million. motoran market value is 40
wells water systems recently reported 8250 of sales 4500 of operating costs other than depreciation and 950 of
Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September. Determine the amount of factory overhead applied to production for September.
a company has a process that results in 6000 pounds of product a that can be sold for 8 per pound. an alternative would
in the current year alice reports 150000 of salary income 20000 of income from activity x 35000 and 15000 losses from
using the following data prepare a classified balance sheet for blanchard company as of december 31 2015.cashnbspnbsp
Randy has been asked to develope an estimate of the perunit selling price (the price that each unit will be sold for) on a new line of hand crafted booklets that offer excuses formissed appointments.
Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement.
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