HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and Pineola, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by HyStandard for return touchups and refinishes after the homeowner occupies the home. HyStandard paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, the company generates about one- third of its total revenues and gross profits from each of the three builders. The HyStandard owner has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered: Support activity Driver Major refinishes Hours on jobs Cost per Driver Unit $120 Touchups Number of visits 100 Communication Number of calls 40 Builder Major Refinishes Touchups Communication Alpine 80 150 360 Blue Ridge 35 110 205 Pineola 42 115 190 Assuming that each of the three customers produces gross profits of $150,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Activity Alpine Blue Ridge Pineola Refinishes $ 16,000 x $ 0 x $ 0x Touchups 0 % 0 * 0x Communication 0x 0 x 0x Total support costs $ 0 x $ 0 x $ 0x HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and Pineola, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by HyStandard for return touchups and refinishes after the homeowner occupies the home. HyStandard paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, the company generates about one- third of its total revenues and gross profits from each of the three builders. The HyStandard owner has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered: Support activity Driver Major refinishes Hours on jobs Cost per Driver Unit $120 Touchups Number of visits 100 Communication Number of calls 40 Builder Major Refinishes Touchups Communication Alpine 80 150 360 Blue Ridge 35 110 205 Pineola 42 115 190 Assuming that each of the three customers produces gross profits of $150,000, calculate the profitability from each builder after taking into account the support activity required for each builder. Activity Alpine Blue Ridge Pineola Refinishes $ 16,000 x $ 0 x $ 0x Touchups 0 % 0 * 0x Communication 0x 0 x 0x Total support costs $ 0 x $ 0 x $ 0x
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Assume that your company is an all-equity firm with 5,000,000 shares outstanding. The company's EBIT is currently $20,000,000, and EBIT is expected to remain constant over time. The company pays out...
-
HyStandard Services, Inc. provides residential painting services for three home building companies, Alpine, Blue Ridge, and Pineola, and it uses a job costing system for determining the costs for...
-
Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The...
-
Zolezzi Incorporated is preparing its cash budget for March. The budgeted beginning cash balance is $29,000, Budgeted cash receipts total $100,000 and budgeted cash disbursements total $91,000. The...
-
How is the criminal liability of a corporation determined?
-
Elizabeth is moving from a one bedroom apartment in one city to a similar apartment in another city. She has been quoted a flat fee for the truck rental and has two estimates for wages of the movers...
-
Draw up a consolidated balance sheet as at 31 December 2007 from the following: At the balance sheet date, Sonny owes Pop and Mom 1,600. During the year Pop and Mom sold goods which had cost 3,000 to...
-
Interact CaseFASAB. Examine the Federal Accounting Standards Advisory Boards Web site at www.fassab.gov and prepare a brief report about its mission and structure and compile a list of organizations...
-
Which of the following Canadian companies must report under International Financial Reporting Standards? partnerships public companies private companies not-for-profit corporations
-
What rule of evidence that we have studied in this course would you modify? In what way? How would your modification affect the presentation of evidence at a trial? Chose Rule 609 or Rule 603
-
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit...
-
One of the changes McDonald's made as part of its reimagining was changing the packaging of the bags and containers. How might these changes influence customer perceptions?
-
38. Nancy paid the following taxes during the year: Tax on residence (for the period from January 1 through December 31) State motor vehicle tax (based on the value of the personal use automobile)...
-
Kim Distribution Services (KDS) distributes food purchased in bulk to small retailers. The firm is divided into two divisions: Purchasing and Distribution. Purchasing is responsible for ordering...
-
A strip of concrete has an original length of 4 meters, and an expansion coefficient of 0.003. If you heat it up from 14 degrees Celsius to 34 degrees Celsius, by how much will the length change
-
A B C D Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par...
-
Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model. Andria Mullins, financial manager of Webster Electronics, has been...
-
Ganados Phases. What are the main phases that Ganado passed through as it evolved into a truly global firm? What are the advantages and disadvantages of each?
-
Why Go. Why do firms become multinational?
-
Financial Globalization. Explain the twin agency problems. How do the twin agency problems limit financial globalization?
Study smarter with the SolutionInn App