MANAGERIAL ACCOUNTING
5th Edition
ISBN: 9781265688165
Author: Noreen
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter P, Problem P.2E
To determine
Introduction:The
To explain: The feeling about being yelled for taking 3 minutes extra time to unload 50 more luggage. Also explain the control system of the company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A car repair shop has two hoists where cars can be lifted for repair work. Currently customers come in at the rate of 4 per hour and are processed at a similar rate. On average 8 cars are waiting to be processed, 4 needing routine repairs and 4 needing major repairs. People are served on a first come first serve basis.
The repair shop owner feels that he is losing many customers needing routine repair because of the long wait. He dedicates one hoist for routine repair and one for major repairs. A study indicates that routine repairs are processed at the rate of 3 per hour and major repairs at the rate of 1 per hour. There are now 5 people waiting on average for routine repairs and 3 waiting on average for major repairs. How long does each type of customer now wait before being served?
(i) With the new system, we have Inventory, I = ___________cars. *
(ii) With the new system, we have Throughput, R = ___________cars per hour. *
(iii) Cars wait an average of ______hours before being…
You are the manager of accounting for a company that sells computer software packages. You have just received word from the comptroller that there has been a change in the expense allowances for employees using their own cars on business. Previously one rate was applied to all employees, but now there will be different allowance rates for regular and nonregular drivers Effective immediately, regular drivers will receive $1.00 per mile for the first 650 miles driven per month, and 25¢ for each additional mile; nonregular drivers will receive 80¢ per mile for the first 150 miles per month, and 25¢ for each additional mile Regular drivers are those who use their own cars frequently on the job to drive to their sales territories. Nonregular drivers are those employees-such as home-office personnel-who only occasionally use their cars on business. To ensure that these categories are used properly, you have requested that the manager of each department notify Accounts Payable, in writing,…
Madison is the newly appointed manager of spark communication a small computer monitor manfacturing company based out of halifox nova Scottia. During her first few days on the jobs she collected the following data about the company. The company has the capacity to produce 750 monitors per month and is currently producing 525monitors every month and selling it to wholesaler The company is expenses are :rent $4000 per month, salaries of $12500 per month, insurance of $1500 per month , material is of $6 permonth, labour of $35 per month and sales commissions of $19 per month. Each month is sold for $105.
a. What is the contribution margin and the contribution rate?
b. What is the break even volume and break even revenue per month?
c. How much net income per month we earned at the current level of presentation.?
Chapter P Solutions
MANAGERIAL ACCOUNTING
Ch. P - Prob. P.1QCh. P - Pick any major television network and describe...Ch. P - If you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Prob. P.5QCh. P - Why is managerial accounting relevant to...Ch. P - Prob. P.7QCh. P - Why do management accountants need to understand...Ch. P - Prob. P.9QCh. P - Pick three industries and describe how the risks...
Ch. P - Pick any large company and explain three ways that...Ch. P - Why do companies that implement Lean Production...Ch. P - Why are leadership skills important to managers?Ch. P - Why are leadership skills important to managers?Ch. P - Prob. P.16QCh. P - Prob. P.17QCh. P - Prob. P.18QCh. P - Why do companies take a physical count of their...Ch. P - Why do companies use sequential prenumbering for...Ch. P - Planning and Control Many companies use budgets...Ch. P - Prob. P.2ECh. P - Prob. P.3ECh. P - Ethics and the Manager Richmond, Inc., operates a...Ch. P - Prob. P.6ECh. P - Ethics In Business Consumers and attorney generals...Ch. P - Prob. P.8ECh. P - Prob. P.9ECh. P - Corporate Social Responsibility In his book...Ch. P - Prob. P.11ECh. P - Cognitive Bias and Decision Making During World...Ch. P - Ethics and Decision Making Assume that you just...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- One of the operations in the Wonderland Post Office is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of one letter per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 32,364,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 145 hours in the month. a. How many temporary employees should the manager hire for December?fill in the blank 1 employees b. If each temporary employee earns a standard $20 per hour, what would be the labor time variance if the actual number of additional letters sorted in December was…arrow_forwardSuppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. a. What is the MRP per driver per day? b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60 packages per day. What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced? c. How many packages per day would each vehicle have to deliver in order to maintain the firm’s profit per vehicle after supervisors are introduced? d. Suppose that the number of packages delivered per day cannot be increased but that the price per delivery might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm’s profit per vehicle…arrow_forwardOne of the operations in the Wonderland Post Office is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of one letter per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 23,850,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 125 hours in the month.arrow_forward
- Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $3,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $4,000 and your raw material costs are $1,500. • What is your average cost (or average total cost) of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents) -'--arrow_forwardYou are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.arrow_forward1. You are in line to check out at your favorite bagel store when the customer in front of you reaches for cream cheese in a container in a refrigerated area. You notice she drops a $20 bill. She just paid for her food and left the store. You’re late for work already and your boss is a stickler for punctuality. What would you do assuming you can catch up with the customer?arrow_forward
- An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in four hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after being instructed. considering salary cost only, determine the cost of performing the task by working alone and by working with his sectary, if the secretary works P2,400 hours a year and the executive 3,000 hours a year.arrow_forward1. An executive receives an annual salary of P600,000 and his secretary a salary of P180,000. A certain task can be performed by the executive working alone in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to the task, it takes her an additional time of 6 hours after being instructed. Considering salary costs only, determine the cost of performing the task by each method, if the secretary works 2,400 hours a year and the executive 3,000 hours a year. Solution: If the executive works alone: P800.00 If the executive delegates the work to his secretary: P737.50arrow_forwardThe direct cost of each hotel guest at Seaview hotel is $15 per night. The hotel manager has estimated that the average overhead cost per guest is $10 per night, based on 100 guest nights per week. The room price is $50 per night. A large group of 50 people have asked to spend one night at the hotel during a week when only 30 other guests are booked. The group of 50 has offered to pay a price of $20 each. Discuss whether the manager should accept the offer.arrow_forward
- Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Stuart to carry the excess. Stuart contracts with independent pilots to fly its planes on a per-trip basis. Stuart recently purchased an airplane that cost the company $6,192,000. The plane has an estimated useful life of 25,800,000 miles and a zero salvage value. During the first week in January, Stuart flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Stuart paid $350 for the pilot and $300 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $300 for the pilot and $150 for fuel. The round trip between…arrow_forwardCarl cleans offices. He has the following buildings to clean every day: building A, which is 12,500 square feet; building B. which is 24,500 square feet; building C, which is 10,500 square feet: and building D, which is 6,700 square feet. He is allowed 5 seconds per square foot. Each employee is allowed one 30-minute lunch per shirt. How many employees will he need to hire?arrow_forwardThornton Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fall, Incorporated. Never-Fall is a multimillion-dollar company started by Wes Never Immediately after he falled to finish his first accounting course. The company's motto is "We Never-Fall to Deliver Your Package on Time." When Never-Fall has more freight than It can deliver, It pays Thornton to carry the excess. Thornton contracts with Independent pilots to fly its planes on a per-trip basis. Thornton recently purchased an airplane that cost the company $5,588,000. The plane has an estimated useful life of 25,400,000 miles and a zero salvage value. During the first week In January, Thornton flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Thornton pald $370 for the pilot and $320 for fuel. The second flight was a round trip from Chicago to New York. For this trip, It paid $320 for the pilot and $160 for fuel. The…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License