Reference no: EM132950281
The Benton Company copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of 6,000,000 copies:
Salaries (fixed) $120,000
Employee benefits (fixed) 15,000
Depreciation of copy machines (fixed) 12,000
Utilities (fixed) 6,000
Paper (variable, one cent per copy) 60,000
Toner (variable, one cent per copy) 60,000
- The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.
Problem 1: Assuming 5,640,000 copies were made during the year, 3,000,000 for sales and 2,640,000 for administration, calculate the copy department costs allocated to sales and administration.
|
Calculate the net cash flows for years one-ten
: The desired rate of return on this project is 10%. Calculate the Net Present Value. Net cash flows for years 1-10 (99,000 X $1 present annuity factor)
|
|
Why would the employees activities be considered fraudulent
: Why would the employees activities be considered fraudulent? How might the observed behaviors cause an unfavorable direct labor efficiency variance?
|
|
How much was the income from a philippine source
: The installation job was completed in the Philippines for another 10 days. He was paid P6,000,000 for his job. How much was the income from a Philippine source
|
|
What is the operating cash flow
: A project will generate sales of $70,466 each. The variable costs are $5,692 and the fixed costs are $19,020. What is the operating cash flow
|
|
Solve copy department costs allocated to administration
: The costs are assigned to two cost pools, one for fixed and one for variable costs. Calculate the copy department costs allocated to sales and administration.
|
|
What amount of student loan interest can zach deduct
: In 2018, he incurred $850 of interest on the federal loans. What amount of student loan interest can Zach and his spouse deduct in 2018, if any
|
|
What will be real effect on profit for expresso metal work
: Expresso Metal Works received an offer from a big-box retail company to purchase 3,660. What will be the real effect on profit if the order is accepted?
|
|
How much gain or loss does Mark recognize
: In addition, Mark 5, share of partnership liabilities was reduced by $10,000 during the year. How much gain or loss does Mark recognize
|
|
What the calculation of the annual cost is
: Net income from a bond with a 20-year par value of $1,000 and at a 9% coupon interest rate was $960. The calculation of the annual cost is
|