Dc construction has two divisions

TB MC Qu. 05-75 DC Construction has two divisions: Remodeling and New Home...

DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $63,500 annually and one salaried estimator who is paid $43,000 annually. The corporate office has two office administrative assistants who are paid salaries of $50,500 and $32,950 annually. The president's salary is $174,000. How much of these salaries are common fixed expenses?

$83,450

$306,950

$257,450

$174,000

TB MC Qu. 09-119 Adi Manufacturing Corporation is estimating...

Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

September

$956,000

October

$968,000

November

$1,026,000

December

$864,000

At Adi, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase. In Adi's budgeted balance sheet at December 31, at what amount will accounts payable for raw materials be shown?

rev: 07_16_2018_QC_CS-131469

$864,000

$345,600

$518,400

$615,600

3.

TB MC Qu. 07-108 The Talbot Corporation makes wheels that it…

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 270,000 wheels annually are:

Direct materials

$54,000

Direct labor

$81,000

Variable manufacturing overhead

$40,500

Fixed manufacturing overhead

$77,000

An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier, $32,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $94,900 per year. Direct labor is a variable cost.

If Talbot chooses to buy the wheel from the outside supplier, then annual net operating income would:

Noreen 4e Recheck 2017-16-03

increase by $86,400

increase by $54,000

increase by $72,100

decrease by $8,500

4.

TB Problem Qu. 06-148 Mouret Corporation uses the following ...

Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.

Activity Cost Pools

Activity Rate

Setting up batches

$

75.51

per batch

Processing customer orders

$

56.15

per customer order

Assembling products

$

1.43

per assembly hour

Last year, Product N79A required 34 batches, 1 customer orders, and 369 assembly hours.

Required:

How much overhead cost would be assigned to Product N79A using the company's activity-based costing system? (Do not round your intermediate calculations. Round your final answer to two decimal places.)

Total overhead cost _________

5.

TB MC Qu. 05-134 Cutterski Corporation manufactures a...

Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure:

Variable cost per propeller

Total fixed cost for the year

Manufacturing cost

$116

$655,200

Selling and administrative expense

$23

$205,200

In its first year of operations, Cutterski produced 72,800 propellers but only sold 68,400. What would Cutterski report as its cost of goods sold under absorption costing?

$10,328,400

$9,275,400

$7,934,400

$8,550,000

6.

TB Problem 05-212 Pabbatti Corporation, which has only one product ...

Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$

81

Units in beginning inventory

500

Units produced

1,500

Units sold

1,600

Units in ending inventory

400

Variable costs per unit:

Direct materials

$

19

Direct labor

$

16

Variable manufacturing overhead

$

1

Variable selling and administrative

$

11

Fixed costs:

Fixed manufacturing overhead

$

22,500

Fixed selling and administrative

$

3,200

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. (Hint: Use the reconciliation method.)

Required:

a. What is the unit product cost for the month under variable costing?

Cost per unit

Variable costing ___________

7.

TB MC Qu. 07-136 The constraint at Bonavita Corporation is...

The constraint at Bonavita Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below:

UN

ZG

PW

Selling price per unit

$

304.94

$

505.59

$

523.65

Variable cost per unit

$

196.46

$

352.87

$

368.85

Minutes on the constraint

4.80

8.30

9.00

Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized.

ZG,PW,UN

UN,ZG,PW

UN,PW,ZG

PW,UN,ZG

8.

TB MC Qu. 06-39 Hochberg Corporation uses an activity-based...

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool

Total Activity

Fabrication

50,000

machine-hours

Order processing

625

orders

Other

Not applicable

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs:

Wages and salaries

$

450,000

Depreciation

172,000

Occupancy

189,000

Total

$

811,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools

Fabricating

Order Processing

Other

Total

Wages and salaries

5%

70%

25%

100%

Depreciation

10%

40%

50%

100%

Occupancy

20%

60%

20%

100%

The activity rate for the Fabrication activity cost pool is closest to:

Noreen 4e Rechecks 2017-24-03

$2.41 per machine-hour

$4.06 per machine-hour

$0.81 per machine-hour

$1.55 per machine-hour

9.

TB Problem 07-171 Tullius Corporation has received a request...

Tullius Corporation has received a request for a special order of 9,200 units of product C64 for $46.10 each. The normal selling price of this product is $51.20 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:

Direct materials

$

16.90

Direct labor

6.20

Variable manufacturing overhead

3.40

Fixed manufacturing overhead

6.30

Unit product cost

$

32.80

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.80 per unit and that would require a one-time investment of $45,600 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required:

Determine the effect on the company's total net operating income of accepting the special order.

Net operating cost____________

10.

TB Problem Qu. 09-154 Caprice Corporation is a wholesaler of industrial goods...

Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

· Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January.

· Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.

· The cost of goods sold is 70% of sales.

· The company desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase.

· The November beginning balance in the accounts receivable account is $82,000.

· The November beginning balance in the accounts payable account is $269,000.

Required:

a. Prepare a Schedule of Expected Cash Collections for November and December.