GBI management is seriously considering marketing a ruggedized version of their Touring Bike to City Bike...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
GBI management is seriously considering marketing a ruggedized version of their Touring Bike to "City Bike" bicycle rental programs. As a pilot, they have agreed to sell 30 City Bikes to a Dearborn-based start-up at a 10% discount off the usual price of $1000 per bike. Because this same bike design was previously offered on GBI's website as the poorly- selling Urban Delivery Bike, the material master data already exists in SAP and all of the raw materials needed to assemble the 30 City Bikes are already in inventory. The raw materials to build one City Bike have a moving average cost of $448.25. Planned costs for the order were based on 60 minutes of labor at the Night Shift rate of $50/hour. However, because the City Bikes are a little trickier to assemble than the children's bikes usually built on the Night Shift, the plant manager chose to hold the Day Shift over and pay the Overtime rate of $75/hour. Day Shift was able to complete the assembly of the City Bikes in 55 minutes/Bike. Steps 1. Gl to production order 2. Goods receipt from production 3. Production order settlement 4. Shipping 5. Billing How did you calculate the amount? 6. Customer Payment You will find it useful to calculate the variances: Bike-Share Bicycle Material Labor Total Planned (Estimate) 0 Actual (debit) Target (credit) Variance (debit - credit) Big Hint: For the Production steps (Steps 1 to 3) see slides 6, 7 and 8 for T Accounts 4 Video - Production. For the Fulfillment steps (Steps 4, 5 and 6) see slide 9 for T Accounts 3 Video - Fulfillment. 0 0 0 Two of the account names and one subledger name have been provided. You will need to fill in the rest. You can add more accounts if you need them. GENERAL LEDGER GENERAL LEDGER Account: Account: Account: Account: Account: Account: Account: SUBLEDGERS Account: Customer-UM Dearborn Extra Credit Essay Account: Account: Mfg Output Settlement Mfg Output Account: Settlement Variance Account: Account: Account: Question: (1 point) What would the Total Variance have been if the actual quantity produced had been 40 bikes instead of 30? Account Balances Case Study Account: GBI management is seriously considering marketing a ruggedized version of their Touring Bike to "City Bike" bicycle rental programs. As a pilot, they have agreed to sell 30 City Bikes to a Dearborn-based start-up at a 10% discount off the usual price of $1000 per bike. Because this same bike design was previously offered on GBI's website as the poorly- selling Urban Delivery Bike, the material master data already exists in SAP and all of the raw materials needed to assemble the 30 City Bikes are already in inventory. The raw materials to build one City Bike have a moving average cost of $448.25. Planned costs for the order were based on 60 minutes of labor at the Night Shift rate of $50/hour. However, because the City Bikes are a little trickier to assemble than the children's bikes usually built on the Night Shift, the plant manager chose to hold the Day Shift over and pay the Overtime rate of $75/hour. Day Shift was able to complete the assembly of the City Bikes in 55 minutes/Bike. Steps 1. Gl to production order 2. Goods receipt from production 3. Production order settlement 4. Shipping 5. Billing How did you calculate the amount? 6. Customer Payment You will find it useful to calculate the variances: Bike-Share Bicycle Material Labor Total Planned (Estimate) 0 Actual (debit) Target (credit) Variance (debit - credit) Big Hint: For the Production steps (Steps 1 to 3) see slides 6, 7 and 8 for T Accounts 4 Video - Production. For the Fulfillment steps (Steps 4, 5 and 6) see slide 9 for T Accounts 3 Video - Fulfillment. 0 0 0 Two of the account names and one subledger name have been provided. You will need to fill in the rest. You can add more accounts if you need them. GENERAL LEDGER GENERAL LEDGER Account: Account: Account: Account: Account: Account: Account: SUBLEDGERS Account: Customer-UM Dearborn Extra Credit Essay Account: Account: Mfg Output Settlement Mfg Output Account: Settlement Variance Account: Account: Account: Question: (1 point) What would the Total Variance have been if the actual quantity produced had been 40 bikes instead of 30? Account Balances Case Study Account:
Expert Answer:
Answer rating: 100% (QA)
Lets break down the steps involved in this process and calculate the relevant amounts GL to Producti... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
Students also viewed these law questions
-
Below are several transactions for a company for Year 1. a. Issue common stock for cash, $54,000. b. Purchase building and land with cash, $39,000. c. Provide services to customers on account,...
-
A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Assume that the daily demand for hubs...
-
Management of the Telemore Company is considering developing and marketing a new product. It is estimated to be twice as likely that the product would prove to be successful as unsuccessful. It it...
-
Davis Company opened a Web page design business on January 1 of the current year. The following information relates to Davis Companys operations during the current year: 1. On February 1, Davis...
-
Mammals cannot undergo net synthesis of carbohydrate from acetyl-CoA, but the carbons of acetyl-CoA can be incorporated into glucose and amino acids. Present pathways by which this could come about.
-
Alpha-Tech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5. Carol Jones, the firm's marketing director, has completed the following sales forecast. Phillip...
-
Find an example of an augmented scatterplot and click on the image. You can answer the following questions using either the default variables and cases, or else use the menu on the left to select...
-
Kitchen Electrics uses a perpetual inventory system. The following are three recent merchandising transactions: Apr. 10 Purchased 10 refrigerators from Polar Co. on account. Invoice price, $600 per...
-
Overview One sector that has witnessed significant changes during the last two years is the grocery sector. Supermarkets and firms had to be creative in ensuring that consumers continued to get...
-
1. What issues should be of concern to Margaret in deciding whether Dairy and Cheese should accept the reaudit engagement? 2. What are Marks ethical obligations in this matter? Should he discuss the...
-
Your agent and your property manager are very confident that you can spend $150,000 ($10,000/unit) and increase the rent from $500 to $700/month for each unit. Here are the new numbers after this...
-
Analyze and discuss any Fiscal/Monetary Policy recently implemented by the Government of an African country - Nigeria (in recent 0 - 5 years). How has this Policy impacted the Business...
-
Do you believe hedge funds serve a useful purpose? Why/Why not? What are some of their pros and cons?
-
he interest on the defined benefit obligation component of pension expense is the current market rate is the same as the expected return on plan assets. reflects the incremental borrowing rate of the...
-
Read "The Pizza Puzzle" here: http://public.tepper.cmu.edu/ethics/AA/mktg06-case.pdf Read the case "The Pizza Puzzle" and answer the questions below: What are the relevant facts? What are the ethical...
-
Please discuss the structural deficit under our US Fiscal Policy. Also give numerical examples explaining the concept along with references showing the data.
-
Discuss the purpose of job evaluations. Discuss the similarities and differences between job evaluations conducted for managerial positions and lower level positions at a firm. The point method of...
-
Find the work done in pumping all the oil (density S = 50 pounds per cubic foot) over the edge of a cylindrical tank that stands on one of its bases. Assume that the radius of the base is 4 feet, the...
-
Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year (compounded once per year). Thats probably one less pizza per week! But if you contribute...
-
An industrial machine costing $14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years...
-
A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread. Neither machine has a market value at the end of seven years,...
-
Which of the following does not occur in the small intestine? (a) Bile from the gall bladder breaks fats into small droplets. (b) Nutrients are absorbed into the body. (c) Proteins are broken down....
-
Which blood vessels are responsible for nutrient and waste exchange with tissues?
-
Trace the path of blood through the body, beginning with blood returning from the tissues to the heart. Be sure to name each of the chambers of the heart.
Study smarter with the SolutionInn App