58.ABADDON CORP. shows the following planned data for the year 2019:ESTIMATED SALES20,000 unitsESTIMATED COSTS:Direct materialsDirect laborVariable factory overheadFixed factory overheadFixed administrative expenseP50,00040,00020,00010,00030,000Selling expenses (all variable) are accounted for as 20% of sales. Thecompany's planned profit is P0.75 per unit. In order to attain the company'sgoal for 2019, the selling price per unit must be set at:P 7.50P10.32P 8.25C.d.a.b.P11.50

The variable expenses are the expenses that arw increased or decreased with changes in number of…

Answered: 58. ABADDON CORP. shows the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
In planning its operations for 2021 based on a sales forecast of P6,000,000 and breakeven point in pesos of P4,000,000, Thone, Inc., prepared the following estimated data: Cost and Expenses (Variable) Direct materials P1,600,000 Direct labor 1,400,000 Factory overhead 600,000 Selling expenses 240,000 Administrative expenses 60,000 What would be the amount of fixed cost and expenses? 1350,000 1,400,000 c. 1,450,000 d. 1,500,000
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin $3,300, өөө 2,640,000 2$ 660,000 360,000 Fixed costs Pretax income $300,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below.
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin $ 432,000 Fixed costs 324,000 Pretax income $ 108,000 1. Compute the company’s degree of operating leverage for 2019.2. If sales decrease by 5% in 2020, what will be the company’s pretax income?3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020.
(b) Additional information regarding the costs of the company are given: Manufacturing costs Variable cost per unit Budgeted fixed manufacturing overhead per year $32,400,000 $25 Selling and administrative costs Variable cost per unit Total fixed cost $5 $5,000,000 Actual production in 2020 7,600,000 units Actual Sales in 2020 7,000,000 units Selling price Actual fixed manufacturing overhead in 2020 $50 per unit $32,000,000 The practical capacity level is used to calculate the budgeted fixed manufacturing cost per unit. There are no variable cost variances. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. There has been no beginning inventory in 2020.
Leo Corporation has the following data for 2021: Per unit variable: Direct material P50 Direct labor P30 Variable Overhead P20 Fixed: Fixed manufacturing P 250,000 Fixed Selling P1,000,000 Fixed General and Administrative: P 700,000 Assuming production for the year is 25000 units and there is no beginning inventory, what is the 2021 before tax net income using absorption costing if 80% of the units produced were sold for a total consideration of P5,000,000 in 2021?
The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 480,000 Fixed costs Pretax income 156,000 The marketing manager believes that increasing advertising costs by $110,000 in 2020 will increase the company's sales volume to 12,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company incur the additional advertising costs?
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 Fixed costs 480,000 Pretax income 156,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $45,500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? %24
Jaguar Corporation’s 2020 manufacturing costs were as follows: Prime cost P 1,120,000 Variable manufacturing overhead costs 160,000 Depreciation of factory building and equipment 120,000 Factory supervisor’s salary (P16,000 per month) 192,000 Other fixed factory overhead 80,000 What amount should be considered product cost for external reporting purposes for the year 2020? Group of answer choices P 1,280,000 P 1,292,000 P 1,360,000 P 1,672,000

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