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elena55 [62]
2 years ago
12

Skip Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is four quarts of raw m

aterial at $2.50 per quart. During May, 4,200 quarts of raw material were purchased at a cost of $10,080. All the purchased material was used to produce 1,000 units of Lem.
Required:
a. Compute the actual cost per quart and the material price variance for May 2013.
b. Assume the same facts except that Skip Company purchased 6,000 quarts of material at the previously calculated cost per quart, but used only 4,200 quarts. Compute the material price variance and material usage variance for May 2013, assuming that Skip identifies variances at the earliest possible time.
c. Prepare the journal entries to record the material price and usage variances calculated in (b).
d. Which managers at Skip Company would most likely assume responsibility for control of the variance computed in requirement (b)?
Business
1 answer:
Lady bird [3.3K]2 years ago
5 0

Answer:

TD Bank of America joined the coded by the

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A capital investment project has the following expected incremental values next year: Revenue $1,000,000 Operating costs 200,000
sattari [20]

Based on the calculation below, incremental after-tax operating cash flow is $675,000

<h3>How to calculate incremental after-tax operating cash flow</h3>

This can be calculated as follows:

Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000

Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000

Therefore, we have:

Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000

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5 0
2 years ago
Assuming the contract qualifies for revenue recognition while the performance obligations are being satisfied, excluding cash, w
shepuryov [24]

Question Completion:

Blue Co. had the following first-year amounts related to its $12,000,000 construction contract Actual costs incurred and paid Estimated remaining costs to complete Progress billings Cash collected $3,000,000 6,000,000 3,500,000 3,100,000 Assuming the contract qualifies for 'revenue recognition over time, what total amount (excluding cash) should Blue Co. recognize as current assets at year end?

Multiple Choice

a) $3,000,000

b) $1,000,000

c) $0

d) $900,000

Answer:

Blue Co.

The total amount (excluding cash) that Blue Co should recognize as current assets at year end is:

d) $900,000

Explanation:

a) Data and Calculations:

Value of Construction Contract =              $12,000,000

Actual costs incurred and paid                    $3,000,000

Estimated remaining costs to complete     $6,000,000

Progress billings                                           $3,500,000

Cash collected                                              $3,100,000

Percentage completion during the first year = Actual costs incurred/Total costs * 100

= $3,000,000/$9,000,000 * 100 = 33.333%

Revenue to be recognized based on percentage of completion and revenue recognition over time = $12,000,000 * 33.333%

= $4,000,000

Accounts Receivable = $900,000 ($4,000,000 - $3,100,000)

8 0
3 years ago
Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee sh
Blizzard [7]

Answer:

With reference to the above scenario, "big ideas":

could become the bases of creative and successful advertising campaigns.

Explanation:

  • The 1st option is not correct as the statement "big ideas are impossible to develop as they are not applicable to retail chains" is not correct because ideas are required by every company.
  • The statement which states that big ideas are only needed in advertising for consumer services is not correct as every industry needs advertising.
  • The statement which states that big ideas are typically not the bases for effective advertising campaigns is also incorrect as big ideas are necessary fro effective advertising campaigns.
  • Big ideas are not limited to the advertisement of business to business scenario yet they are applicable to every kind of advertisement.
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5 0
2 years ago
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:
Oliga [24]

Answer:

                          Hubs Sprockets

Direct Materials   29            17

Direct Labor        13.3            5.7

Overhead            14.65          0.24

Unit Cost              56.95       22.94

Explanation:

<u><em>Labor:</em></u>

Hubs: 0.7 hours per unitx 19 labor rate = $13.3

Sprockets 0.3 x 19 = $5.7

<u><em>Direct Materials:</em></u>

Hubs $29

Sprockets $17

<u><em>Overhead rate</em></u>

Activity                         Pool   Hub          Sprockets

Machine Setups            225   125(55.56%) 100(44.44%)

Special processing 3900 3900    

<u>Machine Setups</u>

27,000 x 55.56% /13,000 units:  $   1.1538  

27,000 x 44.44% / 50,000 units  $  0.24

<u>Special Processing</u>

175,500/13,000 = $13.5

Total overhead

sprockets: $0.24

hubs: $14.65

Units cost:

hubs: 13.3  + 29 + 14.65 = 56.95

sprockets: 5.7 + 17 + 0.24 = 22.94

6 0
2 years ago
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