AIF Inc. has been monitoring several activity costs for the prior three years to track thetrending of costs from 2021 through 2022, and 2023. The table provides insight:ACTIVITYInstructingMentoringConsultingYE 2021YE 2022YE 2023$487,000$530,200$460,000$653,000$659,200$672,000$1,345,200$1,290,000$1,200,000In analyzing the costs based on trend analysis, AIF Inc would conclude which of thefollowing correctly? Check all that apply.Instructing in 2023 had a 5.54% decrease.Mentoring in 2023 had a 13.24% decrease.Consulting in 2022 decreased by $90,000Mentoring costs in 2023 increased by 2.91%Check here if none of the items are correct.

The other options are incorrect because:Instructing did not decrease by 5.54% in 2023; it decreased…

Answered: AIF Inc. has been monitoring several…

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 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.
Kiner, Inc. began work in 2024 on a contract for $21,000,000. Other data are as follows: Cost incurred to date $9,000,000 14,000,000 Estimated costs to complete $6,000,000 - Billings to date $7,000,000 $21,000,000 Collections to date $5,000,000 $18,000,000 If Kiner uses the cost -recovery method, the gross profit to be recognized in 2025 is A) $14,000,000 B) $7,000,000 c) 3,500,000 D) 3,400,000
Domino Consulting, budgeted overhead and other expenses as follows for the year ended December 31, 2023: Overhead: Rent $ 25,000 Repairs 10,000 Fuel 35,000 Maintenance 15,750 Supplies 6,100 Heat and light 20,250 Depreciation-computer 9,400 Miscellaneous 6,000 Depreciation-building 18,000 Depreciation-equipment…
The information provided below was taken from the records of Chotoo Projects for the financialyear ended 31 May 2020.Extract of statement of comprehensive income for the year ended 31 May 2020RRevenue 480 000Direct costs 240 000Rent income 150 000Advertising 4 800Salaries and wages 90 000Rates and taxes 1 200Other operating expenses 80 000Additional information1. Revenue is calculated as direct cost plus 25%.2. Revenue is divided equally each month. Revenue is expected to increase by 18% for thefinancial year ending 31 May 2021.POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDARREGENT BUSINESS SCHOOL (RBS) January 2021 173. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtorsnormally pay their accounts as follows:• 40% in the month of the invoice, and these debtors are entitled toa 5% discount;• 55% one month after the invoice;The balance is usually written off as bad debts.4. Purchases for June and July are expected to be 30…
At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: 2018 2019 Output 45,000 54,000 Output prices $10.00 $10.00 Materials (lbs.) 22,500 22,950 Materials unit price $3.00 $4.00 Labor (hrs.) 18,000 16,875 Labor rate per hour $5.00 $5.00 Power (kwh) 11,250 14,625 Price per kwh $2.00 $3.00 By how much did profit change as a result of profitability changes in labor? a.$23,625 increase b.$23,625 decrease c.$5,625 increase d.$45,000 increase
Can someone help me with this problem? It is very long and I don't know how to begin this. Assume Avaya contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 328,000 $ 1,830,000 Estimated costs to complete as of 12/31 1,312,000 0 Billings during the year 436,000 1,690,000 Cash collections during the year 341,000 1,785,000 Required: Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming…
Each year, Mearic Inc. manufactures 10,000 components that are used in the company's manufacturing process. For 2023, the following manufacturing costs were budgeted: Direct materials ($472,500) Direct labour ($756,000) Variable overhead ($283,500) Fixed overhead ($378,000) Total costs = $1,890,000 Recently, a potential supplier approached management at Mearic Inc. with an offer to sell these components to Mearic Inc. for $150 per unit. If management at Mearic Inc. agrees to buy the components from the supplier, the company would still be required to pay fixed overhead; however, all other manufacturing costs would be avoided. Required:(A) Based on financial considerations alone, should Mearic Inc. accept the offer?(B) Before accepting or rejecting a potential suppliers offer, what qualitative factors should a company such as Mearic Inc. consider?
JPS CC collected the following statistics in order to allocate their overheads among the various departments: Cost items Production A Production B Service C Value of equipment N$ 15 000 N$ 9 000 N$ 6 000 Number of employees 36 24 20 Floor space 400m^2 300m^2 200m^2 Material used N$ 40 000 N$ 30 000 N$ 5 000 Direct labour hours 1 300 700 905 Machine hours 450 305 195 the following amounts represent the budgeted overheads for 2019: Depreciation on equipment 900 Rent of factor building 2 250 Electricity factory 900 Protective clothing 800 Cafeteria 720 Insurance building 450 Insurance machinery 750 Overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours. Required: (a) Calculate the overhead analysis of each of the two production departments for 2003 (b) Calculate the absorption rate for the production departments. (c) What causes under/over absorption rates.
The fixed costs of operating the Bunatta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Assume that budgeted maintenance-hours are used to calculate the allocation rates. Using a single-rate allocation and budgeted usage, how much will each department be allocated? Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
The fixed costs of operating the Srepta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Budgeted hours Actual hours Building and grounds 10,000 9,800 Administration 2,500 1,600 Customer Service 18,000 22,500 IT support 7,500 7,800 Total 38,000 41,700 Assume that budgeted maintenance-hours are used to calculate the allocation rates. 1. Using a single-rate allocation and budgeted usage, how much will each department be allocated? 2. Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
Carica Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Carica’s cost records indicate the following: SUPPORT PRODUCTION Materials Utility Requisitions Services Machining Assembly Total (MR) (US) Budgeted costs before any inter- $200,000 $1,000,000 5,456,000 $7,458,000 $14,114,000 department cost allocations Support work supplied by MR 0% 25%…
On January 1,2022, the Vaughn Company budget committee has reached agreement on the following data for the 6 months ending June 30,2022. Sales units: First quarter 7,200: second quarter 8,640: third quarter 10,080.Ending raw materials inventory: 40% of the next quarter's production requirements.Ending finished goods inventory: 25% of the next quarter's expected sales units.Third-quarter production: 10,430 units. The ending raw materials and finished goods inventories at December 31,2021, follow the same percentage relationships to production and sales that occur in 2022. Three pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound. Total Required DIrect Labor HoursTotal Pounds Needed for productionDirect Material PurchasesCost Per PoundDirect Labor Cost Per HourTotal Cost of Direct Material PurchasesDirect Materials Per unitUnits to be…

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