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Problem 1: Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials $2.00 Direct labour $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.00 Total cost $10.00 The fixed overhead costs are unavoidable. Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do?
Fitzgerald Limited produces and sells a single product. Calculate the revised break even point if a new wage settlement increases direct labour costs by 20%.
From an analysis of the T-accounts, reconstruct the October transaction entries, and the adjusting journal entries that were made on October 31, 2012. Prepare explanations for each journal entry.
Which of the two systems will be more profitable for the firm if sales for either system are expected to average 150,000 units per year? How many units must the company sell to break even if it selects the Deluxe system?
Identify stakeholders and plan how manufacturing or service processes use value stream mapping - What is the benefit and why do companies do it? How would a company measure improvements?
Find the cost of goods manufactured (finished) for the year (in thousands of dollars) was
Sales incentive would increase monthly sales by 400 units. What should be the overall effect on the company's monthly net operating income of this change?
How do you see using this managerial accounting information? Participate in discussion by providing suggestions for other uses of managerial accounting information or by asking questions regarding classmates' posts.
How would you show the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year
Discuss the concept of legal liability for auditors and the massive risk involved. Take a position on this thought and defend it to your classmates. Include a differentiation between common law and statutory law.
Find andProvide a bonds payable amortization table, a stock appreciation rights worksheet, a convertible bonds payable amortization table, and any other working
Prepare an absorption costing income statement for the quarter ended March 31 - Prepare a balance sheet as of March 31.
Explain why either absorption or variable costing is best for a company to use as their costing system for internal decision making.
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