The following data is available for Crater Corporation's North American division for the years 2018 and...
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The following data is available for Crater Corporation's North American division for the years 2018 and 2019. During these years there were no inventories in the system. Production quantity Number of customers Revenues Expenses Direct materials & components Direct production wages (1) Production supervisory salaries Salaries paid to sales representatives (2) Advertising Insurance (3) Building rent (4) Other salaries (5) Honorarium to the members of the board Production quality control (6) Market research Depreciation (7) Facilities management (8) Legal Personnel department Utilities-production (9) Utilities-other (10) Customer service (11) 2019 2018 45,000 41,000 12,000 11,100 $23,300,000 $24,740,000 $3,201,500 $3,534,700 1,449,200 1,591,800 238,600 261,900 559,500 676,100 116,070 259,140 1,161,000 430,700 130,800 346,329 1,326,900 884,330 685,900 196,600. 581,100 569,200 111,000 257,300 1,233,000 430,700 136,020 303,280 1,169,100 746,300 618,500 194,300 763,200 302,900 924,800 853,100 360,840 917,600 $13,817,500 $13,784,900 Note: 1. Paid on the basis of production quantity 2. Ten representatives @ $21,000 per person + 1.5% of sales revenue 3. Manufacturing - 60%; remaining - general liability 4. Manufacturing - 65%; Marketing - 10%; remaining for Administration 5. Manufacturing - 40%; Marketing - 25%; remaining for Administration 6. Fixed -45% 7. Manufacturing - 65%; Sales & Marketing - 15%; remaining for Administration (all straight line) 8. Factory maintenance - 40%: General maintenance -60% 9. Variable -30% 10. Equally divided between Sales & Marketing and Administration; variable-35% 11. Fixed - 10% Required: 1. Classify the expense items by behaviour (based on the number of units produced/sold) and by function (manufacturing. sales/marketing, and administration) Write the amount for each item using 2019 data The following data is available for Crater Corporation's North American division for the years 2018 and 2019. During these years there were no inventories in the system. Production quantity Number of customers Revenues Expenses Direct materials & components Direct production wages (1) Production supervisory salaries Salaries paid to sales representatives (2) Advertising Insurance (3) Building rent (4) Other salaries (5) Honorarium to the members of the board Production quality control (6) Market research Depreciation (7) Facilities management (8) Legal Personnel department Utilities-production (9) Utilities-other (10) Customer service (11) 2019 2018 45,000 41,000 12,000 11,100 $23,300,000 $24,740,000 $3,201,500 $3,534,700 1,449,200 1,591,800 238,600 261,900 559,500 676,100 116,070 259,140 1,161,000 430,700 130,800 346,329 1,326,900 884,330 685,900 196,600. 581,100 569,200 111,000 257,300 1,233,000 430,700 136,020 303,280 1,169,100 746,300 618,500 194,300 763,200 302,900 924,800 853,100 360,840 917,600 $13,817,500 $13,784,900 Note: 1. Paid on the basis of production quantity 2. Ten representatives @ $21,000 per person + 1.5% of sales revenue 3. Manufacturing - 60%; remaining - general liability 4. Manufacturing - 65%; Marketing - 10%; remaining for Administration 5. Manufacturing - 40%; Marketing - 25%; remaining for Administration 6. Fixed -45% 7. Manufacturing - 65%; Sales & Marketing - 15%; remaining for Administration (all straight line) 8. Factory maintenance - 40%: General maintenance -60% 9. Variable -30% 10. Equally divided between Sales & Marketing and Administration; variable-35% 11. Fixed - 10% Required: 1. Classify the expense items by behaviour (based on the number of units produced/sold) and by function (manufacturing. sales/marketing, and administration) Write the amount for each item using 2019 data
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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