ctured all components for their trucks in-house Recently, they have found a vendor for the ci hout the years, they would be willing to sell them the chassis for $8,250 After gathering information from the acco ement has found the following with regard to the current cost levels when producing 3,000 trum 000,000 $15.000.000
Q: Captive insurance companies provide solutions to problems associated with availability with specific…
A: The answer is True. Captives can be used to insure risks that are too small to justify the cost of…
Q: 11. At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for…
A: Allowance for uncollectible accounts is considered a contra-asset account. It is prepared against…
Q: Discuss: How have government accounting evolved since independence on your assigned country. How has…
A: ANSWER:- 1.)Jamaica Brief history The island of Jamaica was inhabited by the Arawak and Taino…
Q: You and your cousin are both Beginning at 25. age 25, you invest $2,000 per year for ten years and…
A: The future value is the value of the assets at a future date assuming a rate of growth, The money…
Q: St. Mark's Hospital contains 560 beds. The occupancy rate varies between 60% and 90% per month, but…
A: 1-a. 60% occupancy = 560 beds x 60% x 30 days = 10,080 bed days 80% occupancy = 560 beds x 80% x 30…
Q: On Monday, a local True Value Hardware sold 15 paint brushes at $3 each, six wrenches at $5 each,…
A: Sales Revenue :— It is the money received or receivable from customer against sale of goods to…
Q: Hadley Company purchased an asset with a list price of $135580. Hadley paid $413 of…
A: CAPITAL EXPENDITURE Capital Expenditure is an Expenses Which is incurred to Purchase the Assets or…
Q: What is a normal costing system, and why do companies tend to use a normal costing system to apply…
A: Cost is the total amount that has been spent on production of goods or rendering of services. Cost…
Q: Napture Rentals operates a boat rental service. Consider the following costs of the company elevant…
A: Fixed cost refers to those expenses which are indirectly linked to the production of a product and…
Q: Questions #28-29 are based on the information below: On January 1, 2021, The Donut Stop purchased a…
A: 28. The entry to record the 2021 amortization expense for the patent should include: The annual…
Q: A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company…
A: A U.S. company purchases medical lab equipment from a Japanese company. The Japanese company…
Q: compute the material loading charge percentage for sutton's Electronic Repair Shop for the year 2020
A: Introduction:- The following formula used to calculate material loading charge percentage for…
Q: July 1, 2021 August 20, 2021 P350,000.00 159,000.00 Prepaid Expense July 28, 2021 P78,000.00…
A: Prepaid expenses are the expenses which are incurred for incoming period and written off as and when…
Q: A zero-coupon, five-year annual corporate bond has a par value of $1000. The estimated risk-neutral…
A: A zero coupon bond, as the name suggests, does not pay any coupons. Instead it trades at a deep…
Q: On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The…
A:
Q: Discuss the purpose of the capital projects fund, debt service fund, and permanent fund. Describe…
A: Financial Statement - Financial statements are documents that describe a company's operations and…
Q: Like new express had machines in Stock at Inventory records for
A: Weighted average method of ending inventory system states that the ending inventory would be the…
Q: Sheffield Corporation was organized on January 1, 2022. It is authorized to issue 11,000 shares of…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Which form(s) report mortgage interest paid? (A) Form W-9 (B) Form W-2 (C) Form 1099s (D) Form 1098
A: A mortgage interest rate a percentage of your total loan balance. It's paid on a monthly basis,…
Q: The monthly payment on an 8%, 36-month, add-on loan for $10,000 would be
A: The amount borrowed is reported under the head liabilities in the balance sheet. Whereas, the…
Q: On February 1, 2021, Stephen (who is single) sold his principal residence (home 1) at a $100,000…
A: There are a number of taxes associated with the selling of property at the time of real estate…
Q: You are internal auditor for Shannon Supplies, Incorporated, and are reviewing the company's…
A: Journal entries refers to the entries which are passed by the businesses at the fiscal year end and…
Q: What were the Auditors’ responsibilities when fraud is detected with Freddie Mac, a home mortgage…
A: The Auditors’ responsibilities when fraud is detected with Freddie Mac, a home mortgage company…
Q: Grouper's Medical operates three support departments and two operating units, Surgery and ER. The…
A: Costing - Analyzing the costs associated with producing an item or providing a service is known as…
Q: The following data were accumulated for use in reconciling the bank account of Creative Design Co.…
A: Introduction:- Bank reconciliations are prepared at the end of each accounting period. It is the…
Q: Direct Materials Variances The following data relate to the direct materials cost for the production…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: Obtain a copy of The State of New Jersey's Comprehensive Annual Financial Report Fiscal Year Ended…
A: The State of New Jersey's comprehensive annual financial report is the report of financial…
Q: Required information [The following information applies to the questions displayed below.] O'Brien…
A: LIFO Method - Under the LIFO Method Company uses the inventory which is produced last and later on…
Q: Required information [The following information applies to the questions displayed below.] Emily…
A: Every organization has some inventory for sale. The company must evaluate the ending inventory by…
Q: When is manufacturing overhead underapplied? When is it overapplied? ( in Managerial Accounting )
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: In the current year, Dylan earned interest from the following investments. Investment…
A: A tax preference item is a sort of ordinarily tax-free income that might make a person subject to…
Q: If the cost of goods available for sale equals $116,029, calculate the cost of goods sold using the…
A: COST OF GOODS SOLD Cost of Goods Sold is the Sum of Direct Cost & Manufacturing Cost of…
Q: Complete the following: (Do not round intermediate calculations. Round your final answers to the…
A: Note: 5/10, n/60: Here, 5 represents the discount rate if payment is made within ten days. And if…
Q: Alegria Inc. sells Alegria Sizzling Fried Chicken in 2022 February. Alegria Inc. had the following…
A: Journal is the primary book of entry. Ledger is the secondary book, where transactions are posted,…
Q: RST LLC processes Product Z through two distinct processes - Process I and Process II. On…
A: Normal loss is the loss which is expected to be incurred in the process. It is inherited in the…
Q: How much money should be invested in an account that earns 9% interest, compounded monthly, in order…
A: PRESENT VALUE Present value is the Current Value of a Future amount of Money, Calculated at a…
Q: Sunland Appliance Co. manufactures low-price, no-frills appliances that are in great demand for…
A: Journal Entry is the primary step to record the transaction in the books of accounts. Sales can be…
Q: Cybil Baunt just inherited a 1958 Chevy Impala from her late Aunt Joop. Aunt Joop purchased the car…
A: When evaluating two alternatives the cost and benefits are evaluated, it is to be determined which…
Q: The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the…
A: Ending balance of Retained earnings = Beginning balance of Retained earnings + Net income -…
Q: Beth Company purchased two identical inventory items. The first purchase cost $5 and the second cost…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the…
Q: Lousia's superannuation balance last year was $1 million and she has contributed a total of $330,100…
A: Due to a legal requirement or voluntarily to keep employees on board for a longer period of time,…
Q: Jill and Frank decided to take a long weekend in New York. City Hotel has a special getaway weekend…
A: Total expense in this questions relates to the total amount spend on hotel room, food, car rental…
Q: [The following information applies to the questions displayed below.] Emily Company uses a periodic…
A: The Last-In, First-Out (LIFO) method assumes that the last unit to arrive in inventory or more…
Q: When Sunland Holdings Ltd. received its bank statement for the month of October, it showed that the…
A: Bank reconciliation statement is the one which is prepared by the entity in order to reconcile the…
Q: Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar…
A: ANSWER:- 1) Selling price per unit = $ 19 Variable cost per unit = $826,500/145,000 = $5.7…
Q: Taxpayer's filing status is single, and he takes the standard deduction. For the year, Taxpayer…
A: Tax liability seems to be the final liability that the taxpayer owes the government based on his…
Q: Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. Direct…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Recording Standards in Accounts Cioffi Manufacturing Company incorporates standards in it accounts…
A: Work in progress is an inventory that is not in the category of raw material and not in finished…
Q: ($ in millions) debit (Credit) Beginning balance Service cost Interest cost Expected return on…
A: Prior service cost at the beginning of the year = Prior service cost at the end of the year +…
Q: Dan Miller. During her first week on the job, Joan was asked to establish a budget for operating…
A: A budget is a statement of expected incomes and expenses for a future period. It is prepared keeping…
Kk.84.
Step by step
Solved in 4 steps
- Guthrie Generators manufactures a solenoid that it uses in several of its products. Management is considering whether to continue manufacturing the solenoids or to buy them from an outside source. The following information is available: 1. The company needs 20,000 solenoids per year. The solenoids can be purchased from an outside supplier at a cost of $15 per unit. 2. The unit cost of manufacturing the solenoids is $20, computed as follows: Direct materials Direct labor Factory overhead: Variable Fixed Total manufacturing costs Cost per unit ($400,000 ÷ 20,000 units) 3. If the company decides not to manufacture the solenoids, it will eliminate all of the raw materials and direct labor costs but only 75 percent of the variable factory overhead costs. 4. If the solenolds are purchased from the outside source, machinery used in the production of solenoids will be sold at its book value. Accordingly, no gain or loss will be recognized. The sale of this machinery would also eliminate $5,000…Rico Company produces custom-made machine parts. Rico recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Rico has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred fixed setup costs of $860,200 (salaries of 17 employees). The fixed costs provide a capacity of 39,100 hours (2,300 per employee at practical capacity). The setup activity was viewed as necessary, and the value- added standard was set at 2,300 hours. Actual setup hours used in the most recent period were 37,110. Required: 1. Calculate the volume and unused capacity variances for the setup activity. Enter all amounts as positive values. Volume Variance 22 Unused Capacity Variance $ Show Me How 2. Prepare a report that presents value-added, non varue…Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 22,000 Units Per Year Direct materials $ 15 $ 330,000 Direct labor 8 176,000 Variable manufacturing overhead 3 66,000 Fixed manufacturing overhead, traceable 3*Footnote asterisk 66,000 Fixed manufacturing overhead, allocated 6 132,000 Total cost $ 35 $ 770,000 *Footnote asteriskOne-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what…
- Troy Engines, Ltd., manufactures a varlety of engines for use in heavy equipment. The company has always produced all of the necessary parts for Its engines, Including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following Information relating to Its own cost of producing the carburetor Internally: 20, 000 Units Per Unit per Year $ 17 $ 340, 000 Direct materials Direct labor variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 11 220,000 60, 000 60,000 120,000 3 3* Total cost $ 40 $ 800, 000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Requlred: 1. Assuming the company has no alternative use for the facilities that are now belng used to produce the carburetors, what would be the financial advantage (disadvantage) of buylng…Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 15,000 Units Unit Per Year Direct materials $ 14 $ 210,000 Direct labor 10 150,000 Variable manufacturing overhead 11 3 45,000 Fixed manufacturing overhead, traceable 6* 90,000 Fixed manufacturing overhead, allocated 9 135,000 Total cost $ 42 $630,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of…Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 22,000 Units per Year $ 330,000 176,000 66,000 66,000 Unit Direct materials $ 15 Direct labor 8 Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 3 3* 6. 132,000 $ 770,000 Total cost $ 35 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of…
- Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 14,000 Units Per Year Direct materials $ 14 $ 196,000 Direct labor 10 140,000 Variable manufacturing overhead 4 56,000 Fixed manufacturing overhead, traceable 6* 84,000 Fixed manufacturing overhead, allocated 9 126,000 Total cost $ 43 $ 602,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial…Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Per 16,000 Units Per Unit Year Direct materials $ 256,000 192,000 48,000 48, 000 96,000 $ 16 Direct labor 12 Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 3 3* Total cost $40 $ 640,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of…Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 20,000 Units Per per Unit Year $ 17 $ 340 ,000 220,000 60,000 60,000 Direct materials Direct labor 11 Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 3 3* 120,000 $ 800,000 6. Total cost $ 40 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying…
- Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 15,000 UnitsPer Year Direct materials $ 14 $ 210,000 Direct labor 10 150,000 Variable manufacturing overhead 3 45,000 Fixed manufacturing overhead, traceable 6 * 90,000 Fixed manufacturing overhead, allocated 9 135,000 Total cost $ 42 $ 630,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the…Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable overhead Supervisory salaries Equipment costs Total cost 15,000 Units Per Per Unit Year $ 14 $ 210,000 10 150,000 3 45,000 30,000 195,000 $630,000 2 13 $ 42 Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors (which means equipment cost is unavoidable), what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that…Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 15,000 Per Units Per Year Unit $ 14 $ 210,000 150,000 45,000 90,000 135,000 $ 630,000 Direct materials Direct labor 10 Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 3 6* Total cost $ 42 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000…