What would be the estimated cost for utilities

Assignment Help Financial Accounting
Reference no: EM132660018

Briggs International manufactures aerial ladders for industrial use. Most of their costs are either true variable costs or fixed costs. However, an account analysis shows the following items are mixed costs.

Account Analysis 2018       Total Cost

Production supervision 75%      fixed $200,000
Utilities 25% fixed                    $ 80,000
Sales staff wages* 60%            fixed $240,000
Quality control inspections** 90%  fixed $ 60,000

  • * The 40% variable portion relates to sales commissions based on total sales.
  • ** 50% of manufactured units are inspected each year.
  • In 2018 Briggs produced and sold 1,000 ladders at $1,000 each. Management expects to sell 1,200 ladders in 2019, does not anticipate any cost increases due to inflation, and plans to maintain the selling price of $1,000 per ladder.

Problem 1: Given the above, what would be the estimated cost for 2019 for Utilities?

Reference no: EM132660018

Questions Cloud

What is latest date on which Wanda can replace property : What is the latest date on which Wanda can replace the involuntarily converted property to qualify for § 1033 if the involuntary conversion is a condemnation
What would be the estimated cost for sales staff wages : Briggs International manufactures aerial ladders for industrial use. What would be the estimated cost for 2019 for Sales staff wages?
Implement a relational database and Utilise a query language : Interpret entity-relationship diagrams to implement a relational database and Utilise a query language tools and techniques to obtain data and information
Compare the various theories associated with crime causation : Compare and contrast the various theories associated with crime causation, and provide supporting information and/or evidence as to the theory that seems most.
What would be the estimated cost for utilities : What would be the estimated cost for 2019 for Utilities? In 2018 Briggs produced and sold 1,000 ladders at $1,000 each. Management expects to sell 1,200 ladders
What is Karl recognized gain : On August 1, 2019, Karl sells the residence for $315,000. On June 13, 2019, Karl purchases a new residence for $367,000. What is Karl recognized gain
What is the relationship between thinking and the mind : What is the relationship between thinking and the mind? Between feeling and the mind? And between other mental phenomena and the mind?
What would be the estimated cost for production supervision : Briggs International manufactures aerial ladders for industrial use. What would be the estimated cost for 2019 for Production supervision?
What is Wesley recognized gain : Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence

Reviews

Write a Review

Financial Accounting Questions & Answers

  Decade leading up to the financial crisis

Numerous corporate scandals occurred in the decade leading up to the financial crisis that began in 2007 and lasted into 2009. Pick a specific event (e.g., a scandal or a collapse) and analyze the key players (i.e., corporations and regulators) invol..

  Accounting treatment-including any required disclosures

In August, 2010, a worker was injured in the factory in an accident partially as the result of his own negligence. The worker has sued Wesley Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorabl..

  What the net carrying amount of the plant after allocation

Compose Limited estimated an impairment loss of $2 500 000 against its single cash-generating unit. The net carrying amount of the plant after allocation

  Has net income increased or decreased from the change

When you repatriate your profits to euros, 1) has your net income increased or decreased from the change in the exchange rate? 2) by how much?

  Management anticipates fixed costs

Management anticipates fixed costs of $79,000 and variable costs equal to 40% of sales. What will pretax income equal if sales are $335,000?

  Types of factors might impact the recognition of write down

What types of factors might impact the recognition of a write down? Is it merely the economy, or are there other things that might impact operations?

  Transaction ratio increase decrease none

Sung Corporation, a clothing retailer, engaged in the transactions listed in the first column of the table below. Opposite each transaction is a ratio and space to mark the effect of each transaction on the ratio.

  Which is not a direct labor cost

Which of the following is not a direct labor cost? Which of the following is an indirect cost?

  What conclusion can be drawn from the horizontal analysis

What conclusion can be drawn from the horizontal analysis? Prepare a comparative income statement with horizontal analysis, indicating the increase.

  What is the future value of an annuity of an annual deposit

What is the future value of an annuity of an annual deposit of $200 at the end of the year for three years at 10% per annum?

  Determine which is correct for statement of cash flow

Determine Which is correct for statement of cash flow. During the year, we made a payment of long-term notes payable of $20,000

  Prepare the general journal entry to record the depreciation

Prepare the general journal entry to record the 2016 depreciation. Assume that the taxi was sold on January I, 2018, for $22,000. Prepare the journal entry for the sale of the taxi in 2018.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd