bartlebvoomld.the cheatersEDITECQ Inc. is in the process of completing labor negotiations for the coming year. Part ofthese negotiations call for an increase in the base wage rate for direct labor from P10to P12 per hour, with a corresponding increase in fringe benefits. At present, fringebenefits amount to 35% of total wages, and this percentage will remain unchangedwith the new contract. The present labor standards call for 8 direct labor hours perunit of output. Other conversion costs amount to P40 per unit, of which 75% is forvariable costs. Materials costs amount to $8 per unit. Administrative costs are fixedand amount to P10 per unit at the present production level. Products are sold with agross margin of 30% on sales.Compute the new selling price to be charged if there is no increase in productivity as aresult of the new labor contract.•..MoreAdd to Story

A pricing decision is a process of determining the price of the product. Various factor affects this…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oriole Company enters into a contract with a customer to build a warehouse for $401900, with a performance bonus of $101900 that will be paid based on the timing of completion. The amount of the performance bonus decreases by 20% per week for every week beyond the agreed-upon completion date. The contract requirements are similar to contracts that Oriole has performed previously, and management believes that such experience is predictive for this contract. Management estimates that there is a 50% probability that the contract will be completed by the agreed-upon completion date, a 30% probability that it will be completed 1 week late, and a 20% probability that it will be completed 2 weeks late. What is the total transaction price for this revenue arrangement? $489534 $503800 $483420 $463040
the number of hours required to produce the forecasted number of units assuming that the direct labor work force is not adjusted each quarter. Exercise 4 (Direct Labor Budget) The Production Department of the Laguna Plant of JC Corporation has submitted the following forecast of units to be produced at the plant for each quarter of the upcoming fiscal year. The plant produces high-end outdoor barbeque grills. 1st quarter 5,000 2nd quarter 4,400 3rd quarter 4,500 4th quarter 4,900 Units to be produced Each unit requires 0.40 direct labor-hours and direct labor-hour workers paid P11 per hour. Required: 1 Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor work force is adjusted each quarter to match produced. 2. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor work force is not adjusted each quarter.
WHAT US THE ESTIMATED LIABILITY FOR VACATION PAY? Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week.
Jonas Consulting enters into a contract to provide cost management consulting services over a 1-year period for $10,000 per month. At the end of the contract, Jonas will either give the customer a $24,000 refund or be entitled to an additional $24,000, depending on the level of cost savings. The company believes there is an 80% chance that it will be entitled to an additional $24,000 and a 20% chance it will give a refund of $24,000. In addition, Jonas believes it is probable that a significant reversal of any previously recognized revenue will not occur. The contract performance is determined to be satisfied over time. Required: 1. Determine the monthly transaction price that Jonas should use for recording the contract and prepare Jonas’s journal entry at the end of the first month of the contract using the most likely amount approach.
Brooks Advertising pays Lee Young $97,290 per year. Requirements 1. What is the hourly cost to Brooks Advertising of employing Young? Assume a 45-hour week and a 47-week year. 2. What direct labor cost would be assigned to Client 507 if Young works 19 hours to prepare Client 507's magazine ad? Requirement 1. What is the hourly cost to Brooks Advertising of employing Young? Assume a 45-hour week and 47-week year. Select the formula below that Brooks Advertising would use to calculate the hourly cost and complete the formula. (Round the hourly cost to the nearest cent.) + Hourly cost
We have given the contract to an agency for the value of 17 Cr for the duration of 7 month with the LD clause of 0.5% of total contract price for each week's delay or part thereof, subject to maximum of 5% of total contract price. But agency has completed only 9 Cr in 10 month duration and closed the work, in this case how will calculate the LD amount?
Accounting Zain must decide how best to use a monthly factory capacity of 1,500 units. Demand from regular customers is risky and could be either 500, 600 or 700 units per month. Regular customers generate contribution of $6 per unit. Zain has the opportunity to enter a special contract which will generate contribution of only $4 per unit. For the special contract, she must enter a binding agreement now at a level of 1000, 800 оr 600 units. Instructions: Display all possible contributions in the table below. Show your calculation. Special contract Demand units 1000 800 600 500 600 700
The entry level pay for a Safeway factor job is $16.50/hr. If you make it past the probationary period, your pay becomes $18.00/hr. What is the percent change?(round the the nearest tenth of a percent) Is this a % decrease or a % increase?
. Sharp Enterprises operates its factory on a two-shift basis and pays a later shift differential of 15 percent above the regular wage rate of P65 per hour. The company also pays a premium of 10 percent for overtime work. During the year, work occurred in the following categories: Number of hours worked during the regular shift Number of overtime hours for regular shift workers Number of hours worked during the late shift Requirement: 10,000 300 6,000 1.Compute for the amount to be distributed to Work-in-Process. 2.How much is distributed to Factory Overhead Account? 3.Assuming that Direct Materials amounted to P3,575,000 while Total Manufacturing Overhead is P800,000, how much is Period Cost? 4.Assuming that Direct Materials amounted to P2,500,000 while Total Manufacturing Overhead is P1,025,000, how much is Period Cost?
Stein Advertising pays Brooke Peet $64,680 per year. Requirements What is the hourly cost to Stein Advertising of employing Peet? Assume a 30-hour week and a 49-week year. What direct labor cost would be assigned to Client 507 if Peet works 19 hours to prepare Client 507's magazine ad? 1. 2. Requirement 1. What is the hourly cost to Stein Advertising of employing Peet? Assume a 30-hour week and 49-week year. Select the formula below that Stein Advertising would use to calculate the hourly cost and complete the formula. (Round the hourly cost to the nearest cent.) Hourly cost h + + = =
Three construction jobs are being considered by Clam City Construction (see the accompanying table). Each is characterized by an initial deposit paid by the client to Clam City Construction (CCC), a yearly cost incurred by CCC at the end of each of three years, and a final payment to CCC by the client at the end of three years. CCC has the capacity to do only one of these contracts. Use an appropriate rate of return method to determine which it should choose. The company's MARR is 10 percent. Job 1 2 3 Deposit $100,000 $130,000 $145,000 Cost per Year $75,000 $100,000 $150,000 Final Payment $195,000 $240,000 $350,000 with an Considering the jobs in order of lowest first cost, the best option is incremental rate of return of percent. (Round to one decimal place as needed. Use an approximate ERR if the IRR cannot be used.)
Sandhill Construction enters into a contract witha customer to build a warehouse for $910000 on March 30, 2021 with a performance bonus of $40000 if the building is completed by July 31, 2021. The bonus is reduced by $8000 each week that completion is delayed. Sandhill commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2021 70% August 7, 2021 20% August 14, 2021 5% August 21, 2021 5% The transaction price for this transaction is O $673400 O $946400 O $665400 O $910000

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