A- The following data pertains to activity and utility costs for two recent years: Year 2...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A- The following data pertains to activity and utility costs for two recent years: Year 2 Year 1 10,000 6,000 Activity level in units Utilities Cost $12,000 Required: Using the high-low method 1. Compute the variable and fixed elements of Rolland's total costs. marks) 2. Estimate the total cost if activity level in units is 12.000, assuming total fixed costs and variable (2 cost per unit do not change. marks) $9,000 B- The following information relate to AAA Company Sales price per unit Variable costs per unit Total fixed costs $ 50 30 40,000 Required: 1- Calculate Contribution margin per unit 2- Calculate Contribution margin ratio 3- Calculate required units to achieve target profit $460,000 4- Calculate required units to breakeven 5- Calculate required sales dollars to breakeven 6- Prove your answer in requirements 4 (10 marks) C-Management of Farah Corporation has asked your help as an intern in preparing some key reports for April. Direct materials cost was $65,000, direct labor cost was $50,000, and manufacturing overhead was $80,000. Selling expense was $20,000 and administrative expense was $35,000. Required: Calculate: prime cost and total manufacturing cost. (5 marks) D- Errors can be classified into those that do and those that do not affect the trial balance. Errors that do not affect the trial balance means that it still balances. Errors that affect the trial balance result in a discrepancy that prevents it balancing. List five errors of each type. (5 marks) E- Sun Company and Moon Company are identical in all respects except that most of Sun company costs are variable, and most of Moon company costs are fixed. In case sales increase (for both companies), which of the two companies will tend to realize the greatest increase in its net income? Why? (5 marks) A- The following data pertains to activity and utility costs for two recent years: Year 2 Year 1 10,000 6,000 Activity level in units Utilities Cost $12,000 Required: Using the high-low method 1. Compute the variable and fixed elements of Rolland's total costs. marks) 2. Estimate the total cost if activity level in units is 12.000, assuming total fixed costs and variable (2 cost per unit do not change. marks) $9,000 B- The following information relate to AAA Company Sales price per unit Variable costs per unit Total fixed costs $ 50 30 40,000 Required: 1- Calculate Contribution margin per unit 2- Calculate Contribution margin ratio 3- Calculate required units to achieve target profit $460,000 4- Calculate required units to breakeven 5- Calculate required sales dollars to breakeven 6- Prove your answer in requirements 4 (10 marks) C-Management of Farah Corporation has asked your help as an intern in preparing some key reports for April. Direct materials cost was $65,000, direct labor cost was $50,000, and manufacturing overhead was $80,000. Selling expense was $20,000 and administrative expense was $35,000. Required: Calculate: prime cost and total manufacturing cost. (5 marks) D- Errors can be classified into those that do and those that do not affect the trial balance. Errors that do not affect the trial balance means that it still balances. Errors that affect the trial balance result in a discrepancy that prevents it balancing. List five errors of each type. (5 marks) E- Sun Company and Moon Company are identical in all respects except that most of Sun company costs are variable, and most of Moon company costs are fixed. In case sales increase (for both companies), which of the two companies will tend to realize the greatest increase in its net income? Why? (5 marks)
Expert Answer:
Answer rating: 100% (QA)
A 1 Calculate the variable cost per unit Variable Cost per Unit Change in Total CostChange in Activity Level 120009000100006000 075 Identify the total fixed cost using one of the data points Total Fix... View the full answer
Related Book For
Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
Posted Date:
Students also viewed these accounting questions
-
Now that you have completed the Unit 5 assessment, it is time to complete your final project. The final project is worth 10% of your final grade. Your final project will consist of a polished STSE...
-
Now that you have completed the book and are on your way to mastering derivatives, briefly discuss your views as to whether derivatives are good or bad? Feel free to use the Internet to get some...
-
Now that you have completed the June bank reconciliation process, you are asked to complete the worksheet for Cover 2 Cover. The worksheet is an internal document that exists outside the journals and...
-
Why do joints tend to be evenly spaced rather than clustered?
-
A truss is loaded as shown in Figure. Using the following set of equations, solve for the 10 unknowns: AB, BC, AD, BD, CD, DE, CE, Ax, Ay and Ey. A x + AD = 0? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?...
-
Suppose you conducted an ANOVA that produced the table below. SS df MS F Between 30 3 10 2 Within 10 2 5 Total 40 5 What is the effect size? Question 6 options: Medium Negligible Small Large
-
Using the information for the Melville Corporation above calculate the cash flow from investing activities. Use the following information regarding the Melville Corporation Accounts payable...
-
While crossing an intersection, the client was struck by a vehicle driven by a minor. The minor's parents owned the vehicle, and the minor was driving with their knowledge and consent. The minor has...
-
List three of the basic functions of business networks and briefly describe what each function provides.
-
Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1983, and Joan was born on July 1, 1984. Both enjoy good health and...
-
Using a scale of 1 to 10, where 10 is the most painful and 1 is least painful, when John's wealth is $100,000 he rates a $1,000 loss as being a 3. When John's wealth is $1,000,000 he rates the loss...
-
Year 1 April 20 Purchased $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying...
-
Taylor, a single taxpayer, has $ 1 6 , 7 0 0 AGI. Assume the taxable year is 2 0 2 3 . Use Standard Deduction Table. Married filing jointly and surviving spouses $ 2 7 , 7 0 0 Married filing...
-
Lucia rented a car for $253 per week (with unlimited driving miles) to use during her spring break vacation. She must also pay for gasoline which costs $3.40 per gallon. The car gets 25 miles per...
-
how to find the P/E ratio , market value per share Report: Balance Sheet Type: Full Report Company: Intuitive Surgical, Inc. (Cusip: 46120E602 Sic: 3842) 2019 2020 2021 2022 2023 2024 Assets Cash...
-
Describe the duty of a stock broker ( trader ) who is acting as an agent on behalf of a principal ( client ) in terms of managing the client\'s account. Bear in mind the duty of loyalty that an agent...
-
1. Go to the International Monetary Fund page https://data.imf.org/ > Data > National Accounts > Gross Domestic Product. 2. Once there: In the Country select the United States and in date select the...
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
Assume that in 2015, Nelson Communications purchased a controlling interest in Telnet co that resulted in goodwill in the 2015 consolidated financial statements of $4,500,000. There are no other...
-
PCAOB inspection reports that have been released to the public contain a variety of examples of audit engagements in which auditors have had difficulty dealing with potential adjustments to client...
-
What factors influence the reliability of data used in conducting planning analytical procedures in the revenue cycle?
-
Folk Landscaping is evaluating an offer to purchase Bruce Lawn Care, its main competitor, for \($250,000.00.\) An accountant has projected that the purchase will increase Folks annual net cash flow...
-
How much do we need to invest each year to have \($100,000.00\) in a college fund when our child turns 18 years old? New parents often seek similar advice from their financial advisors to establish...
-
Forester Company is evaluating the purchase of equipment from two vendors. Differences in the technology and labor requirements to operate the equipment of each vendor affect the projected net cash...
Study smarter with the SolutionInn App