With a tax of $4,000 on $20,000 of

X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and ac

Zina [86]

Answer:

Explanation:

Overhead allocated to Product X = Department A overhead cost+ Department B overhead cost

= $51,157.84+$5755.62=

= $56,913

Calculations:

Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X:

Department A's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $4300000/60000 hours = $71.66 per hour

Overhead (Department A) = $71.66per hour*724 labor hours

= $51,157.84

Department B's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $2200000/60000 hours = $36.66 per hour

Overhead (Department A) = $36.66 per hour*157 labor hours

= $5755.62

6 0

3 years ago

Searls Corporation, a merchandising company, reported the following results for July: Number of units sold 2,700 units Selling p

melisa1 [442]

Answer:

$534,600

Explanation:

Contribution margin = Sales - Variable Costs

where :

Sales = 2,700 units x $664 = $1,792,800

Variable Costs = Costs of Goods Sold + Variable Selling Costs + Variable Administrative Cots

= 2,700 units x $405 + 2,700 units x $48 + 2,700 units x $13

= $1,258,200

therefore,

Contribution margin = $1,792,800 - $1,258,200 = $534,600

6 0

3 years ago

"A customer who has his primary residence in Colorado, has a vacation home in Montana. An intrastate offering is being made in t

harina [27]

Answer:

the customer is prohibited from buying these securities

Explanation:

In the situation being described the statement that would be true is that the customer is prohibited from buying these securities. This is because intrastate offerings are security offerings that can only be purchased in the state in which it is being offered in and only by permanent residents of that state. Seeing since the customer in this scenario has his permanent residence in Colorado and not Montana, then he cannot purchase this offering.

6 0

3 years ago

1.42 pointsItem 4Item 4 1.42 pointsOn January 1, Revis Consulting entered into a contract to complete a cost reduction program f

deff fn [24]

Question Continuation

Prepare the following journal entries for Revis:

1. The journal entry on January 31 to record the first month of revenue under the contract.

2. Assuming total cost savings exceed target, the journal entry on June 30 to record receipt of the bonus.

3. Assuming total cost savings fall short of target, the journal entry on June 30 to record payment of the penalty.

Answer:

1. The journal entry on January 31 to record the first month of revenue under the contract.

Possible Price -------------------------------Possibility------------Expected Amount

$130,000 ($20,000*6+$10,000) ------80% ------- --------------$104,000 (80% * $130,000)

$110,000 ($20,000*6-$10,000) --------20% -----------------------$22,000 (20% * $110,000)

Expected value--------------------------------------------------------------$126,000 ($104,000 + $22,000)

Accounts ------------------------Debit------------Credit

Cash -------------------------------$20,000 (Debit)

Bonus receivable----------------$1,000 (Debit)

Service revenue --------------------------------- $21,000 ($126,000/6)(Credit)

2. If total cost savings exceed target, record the entry on June 30 for receipt of the bonus

Accounts --------------Debit--------------------------Credit

Cash --------------------- $10,000 (Debit)

Bonus receivable-------------------------------------$6,000 (Credit) ($1000 * 6)

Service revenue ------------------------------------- $4,000 (Credit)

3. If total cost savings fall short of target and record the entry on June 30 for payment of the penalty.

Accounts --------------Debit--------------------------Credit

Service Revenue ---------------- $16,000 (Debit)

Bonus receivable-------------------------------------$6,000 (Credit) ($126,000 / 6)

Cash ------------------------------------- $4,000 (Credit)

3 0

3 years ago

Benoit company produces three products—a, b, and

Lana71 [14]

My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

 PER UNIT
 PRODUCT A B C
 SELLING PRICE 80 62 81
 VARIABLE EXPENSES
 DIRECT MATERIALS 24 18 9
 OTHER VAR EXP. 24 25.4 43.65
 TOTAL VAR EXP 48 43.4 52.65
 CONTRIBUTION MARGIN 32 18.6 28.35
 CM RATIO 0.4 0.3 0.35
 
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
 SAME RAW MATERIAL IS USED IN EACH PRODUCT.
 MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
 
PRODUCT DM UNIT COST NO. OF LBS
 A 24 3 8
 B 18 3 6
 C 9 3 3
 PRODUCT NO. OF LBS/UNIT MAX UNITS TOTAL NO. OF LBS
 A 8 800 6400
 B 6 800 4800
 C 3 800 2400
 TOTAL 13600
 LIMITATION: 5,000 POUNDS PER MONTH ONLY.

 required: 
 1. calculate the contribution margin per pound of the constraining resource for each product. 
 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
 
PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS.

5 0

3 years ago