Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $657,800 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $663,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 614 Milling 284 Assembly 984 Actual number of employees for the most recent year Long-run average number of employees 514 720 384 480 804 1,200 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Assembly Medical services department charges < Required 1 Required 2 > Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $657,800 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $663,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 614 Milling 284 Assembly 984 Actual number of employees for the most recent year Long-run average number of employees 514 728 384 480 804 1,200 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Spending variance < Required 1 Required 2 > Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Plant and equipment, net Inventory Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Beginning Balance Ending Balance $ 126,000 $ 139,000 341,000 475,000 569,000 487,000 804,000 779,000 392,000 427,000 249,000 251,000 $ 2,481,000 $ 382,000 1,025,000 1,074,000 $ 2,558,000 $ 339,000 1,025,000 1,194,000 $ 2,481,000 $ 2,558,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 198,000 $ 5,022,000 4,218,480 803,520 326,000 $ 477,520 The company paid dividends of $357,520 last year. The "Investment in Buisson, S.A.." on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 96 96 Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $657,800 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $663,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 614 Milling 284 Assembly 984 Actual number of employees for the most recent year Long-run average number of employees 514 720 384 480 804 1,200 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. Cutting Milling Assembly Medical services department charges < Required 1 Required 2 > Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services Department costs are budgeted at $657,800 per year. Actual Medical Services Department costs for the most recent year were $106,700 for variable costs and $663,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 614 Milling 284 Assembly 984 Actual number of employees for the most recent year Long-run average number of employees 514 728 384 480 804 1,200 Required: 1. Determine the Medical Services Department charges for the year to each of the operating departments-Cutting, Milling, and Assembly. 2. How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How much, if any, of the actual Medical Services Department costs for the year should be treated as a spending variance and not charged to the operating departments? Spending variance < Required 1 Required 2 > Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Plant and equipment, net Inventory Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Beginning Balance Ending Balance $ 126,000 $ 139,000 341,000 475,000 569,000 487,000 804,000 779,000 392,000 427,000 249,000 251,000 $ 2,481,000 $ 382,000 1,025,000 1,074,000 $ 2,558,000 $ 339,000 1,025,000 1,194,000 $ 2,481,000 $ 2,558,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 198,000 $ 5,022,000 4,218,480 803,520 326,000 $ 477,520 The company paid dividends of $357,520 last year. The "Investment in Buisson, S.A.." on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 96 96
Expert Answer:
Answer rating: 100% (QA)
ANSWER 1 Compute the companys average operating assets for last year Average operating assets Beginn... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Simulate the following model pt = t1+ t. Assume that e, is a normally distributed random variable t N (0, 2) and consider different values for the parameter = 0.4, 0.4, -0.7. 0.7. In each of the...
-
An 8-foot-wide hallway makes a turn as shown in Figure 9. What is the length of the longest thin rod that can be carried around the corner? 105 5
-
An energy audit indicates that a home consumption is 20,000 kWh/year. By using Energy Star appliances and CFLs, a savings of 20% can be achieved for the electrical energy use. The cost for the home...
-
An oxygen tank with a volume of 2.5 ft3 is kept in a room at 50F. An engineer has used the ideal gas equation of state to determine that if the tank is first evacuated and then charged with 35.3lbm...
-
2. For the block diagram shown on the previous page, find each of the following transfer functions. [2 marks each] (a) Try =Y(s)/R(s) (b) Tay =Y(s)/D(s) (c) Tru = U(s)/R(s)
-
1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal 2. What is the EUP for materials? 3. How many units were transferred out? 4. What is the EUP for conversion costs? Diligent...
-
Consider the nearly circular orbit of Earth around the Sun as seen by a distant observer standing in the plane of the orbit. What is the effective "spring constant" of this simple harmonic motion?
-
Object A, mass \(4.24 \times 10^{5} \mathrm{~kg}\), is at rest in reference frame \(\mathrm{A}\), and object \(\mathrm{B}\), mass \(7.71 \times 10^{4} \mathrm{~kg}\), moves at \(0.875 c_{0}\) in this...
-
Relative to Earth, spaceship A travels at \(0.732 c_{0}\) away from Earth, and spaceship B travels at \(0.914 c_{0}\) toward Earth along the same straight line. (a) How fast does A move according to...
-
Using the model studied in Section 7.2.8, explain why better information regarding borrowers and their credit histories is likely to reduce the adverse effects of inequality on output. Data from...
-
A \(2.0-\mathrm{kg}\) cart is attached to a horizontal spring for which the spring constant is \(50 \mathrm{~N} / \mathrm{m}\). The system is set in motion when the cart is \(0.24 \mathrm{~m}\) from...
-
For this discussion board, consider the issue of property crime. You are at a meeting of some law enforcement officials. Some of them argue simply that drug crime is driving property crime. Other...
-
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
-
Write up a brief summary of the study in Exercise 20.10. I frequently ask you to use SPSS or R to solve a problem. You should have no problem with SPSS if you stick with the Legacy analyses. You...
-
Find the response of a damped system with \(m=1 \mathrm{~kg}, k=15 \mathrm{kN} / \mathrm{m}\), and \(\zeta=0.1\) under the action of a periodic forcing function, as shown in Fig. 1.119. Figure...
-
True or False. The Runge-Kutta method can be used to solve to numerically solve differential equations of any order.
Study smarter with the SolutionInn App