Am. 133. The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-3][The following information applies to the questions displayed below.]Adger Corporation is a service company that measures its output based on the number of customers served.company provided the following fixed and variable cost estimates for budgeting purposes and the actual resulMay as shown below:RevenueEmployee salaries and wagesTravel expensesOther expensesFixed Element perMonthVariable Elementper Customer$ 62,000Served$ 6,600$ 2,300$ 41,000$ 540Actual Total forMay$ 213,500$ 141,100$ 15,700$ 38,900When preparing its planning budget, the company estimated it would serve 30 customers per month; howeveduring May the company actually served 35 customers.

Step 1: Figure out how much money you have set aside for May.To reach the total fixed costs, add…

Answered: The Foundational 15 (Algo) [LO9-1,…

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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! Required information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-3] [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Foundational 9-15 (Algo) Fixed Element per Month Employee salaries and wages Travel expenses Other expenses $ 51,000 $ 30,000 Variable Element per Customer Served $ 5,200 $ 1,200 $ 650 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. Activity Variance Actual Total for May $ 170,000 $ 92,700 $ 20,600 $ 29,000 15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the…
Required: a) Using Activity Based Costing, calculate the rate for each cost driver. b) Using activity based budgeting, prepare a budgeted yearly operating statement for Aero3D Ltd. Show the following separately, within the statement. i. The budgeted output for each product per year; ii. The contribution to profits for each product and in total before charging activity based costs; iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs); iv. The total profit after charging core based costs.
PROBLEM III, Silva Corporation uses an absorption costing system for internal reporting purposes, At present, however, it is considering to use the variable costing system, Following are some data regarding Silva Corporation's budgeted and actual operations for the calendar year 2008: BUDGETED 25,200 18,480 8,400 10,640 16,800 14,700 4,200 6,300 104,720 COSTS ACTUAL 23,400 17,160 7,800 10,000 15,000 14,700 3,750 6,375 98,185 Materials Labor Variable Factory Overhead Fixed Factory Overhead Variable Selling Expenses Fixed Selling Expenses Variable Administrative Expenses Fixed Administrative Expenses Actual Budgeted (Units) (Units) Finished Goods Beginning Inventory Production Sales 280 280 1,120 1,120 1,040 1,000 The budgeted costs were computed based on the budgeted production and sales of 1,120 units, the company's normal capacity level, Silva Corporation uses a predetermined factory overhead rate for applying manufacturing overhead costs to its product, The denominator level used in…
The data to the right pertain to the operating budget of a manufacturing company. Compute the following (a) contribution margin (b) contribution rate (c ) break - even point in sales dollars \table[[\ table[[Sales], [Fixed cost], [Total variable cost]], \table[[$145,000
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 87,000 7,700 10,700 21,700 Activity 2 $ 62,000 8,700 16,700 9,700 Activity 3 $ 116,000 4,200 2,700 3,325 How much overhead will be assigned to Product B using activity-based costing?
Manhattan Partners provides management consulting services to government and corporate clients. Manhattan has two support departments administrative services (AS) and information systems (IS)-and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2017, Manhattan's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole. dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Operating Departments Support Departments AS GOVT CORP Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Budgeted overhead costs before any interdepartment cost allocations Support work…
The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Budgeted Activity Cost Pool Cost Product A Product B Product C Activity 1 $70,000 6,000 9,000 Activity 2 $45,000 7,000 15,000 Activity 3 $82,000 2,500 1,000 What are the activity rates for the three activities under activity based costing? O (1) $2.00; (2) $3.00; (3) $3.50. O (1) $3.50; (2) $1.50; (3) $32,80. O (1) $3.50; (2) $3.00; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $16.00. O (1) $2.00; (2) $1.50; (3) $32.80. Question 9 F2 F7 -0- 2 F3 O+ # 3 F4 BJ LA $ 4 F5 N F6 % 5 6 20,000 8,000 1,625 F8 $ & 7 F9
The company makes a product with the following costs: Direct materials→₱17.00; Direct labor→₱22.00; Variable manufacturing overhead→₱4.00; Fixed manufacturing overhead→₱504,000.00; Variable selling, general and administrative expenses→₱4.90; Fixed selling, general and administrative expenses→₱319,200. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 30,000 units per year. The company has invested ₱360,000 in this product and expects a return on investment of 15%. Tax rate is 25%. The markup on absorption cost would be closest to: a. 41.72% b. 15.00% c. 30% d. 43% e. 37.45% f. 45.30%
5.) Alpha Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow: Service Departments Operating Departments Custodial Maintenance Cutting Milling Assembly Budgeted costs before allocation Square feet Labor-hours $40,000 4,000 $28,000 $160,000 $88,000 $185,000 40,000 50,000 7,000 30,000 3,000 32,000 7,000 Required: a. Prepare a schedule to allocate service department costs to the production departments by the direct method. b. Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first.
Shown below is a comparison between thebudgeted and actual costs data for the MixingDepartment headed by Ms. Candy.Budget ActualSalaries and wages P 20,000 P 20,000Supplies 8,000 12,000Postage, telephone and telegraph 2,500 3,700Repairs and maintenance 4,000 2,500Depreciation 3,000 2,000Light and water 2,000 2,800The decrease in depreciation cost and repairs andmaintenance is due to the disposal of an equipment duringthe period. The disposal was approved by the VicePresident for Production when the Mixing Departmentreported that the equipment was not functioning efficiently.On the other hand, the increase in light and water cost isdue to the adjustment in power rates imposed by ManilaElectric Company.Determine the amount of cost variance that must beconsidered in evaluating the performance of the MixingDepartment.
The firm manufactures a product with the following costs: Direct materials→₱14.00; Direct labor→₱12.00; Variable manufacturing overhead→₱3.00; Fixed manufacturing overhead→₱1,500,000; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱1,000,000. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 80,000 units per year. The company has invested ₱500,000 in this product and expects a return on investment of 25%. Tax rate is 25%.

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