Tag: accounting

“Nelson Company’s activity for the first six months of 19×4 is as follows: Machine Electrical Month Hours Cost January 4,000 $3,120 February 6,000 $4,460 March 4,800 $3,500 April 3,800 $3,040 May 3,600 $2,900 June 4,200 $3,200 75. Using the high-low method, the fixed portion of the electrical cost each month would be a. $1,520 b. $440 c. $260 d. $560”,”4. The fixed portion of the electrical cost each month: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level4,460 – 2,900 = .65/hr6,000 – 3,600Elect. Cost = FC + .65Q4,460 = FC + .65 x 6,000FC = 4,460 – 3

Managerial Accounting

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“The Yost Company makes and sells a single product, Product A. Each unit of Product A requires 1.2 hours of labor at a labor rate of 8.40 per hour. Yost Company needs to prepare a Direct Labor Budget for the second quarter of 19×6. 91. The budgeted direct labor cost per unit of Product A would be: a. $8.40. b. $7.00. c. $10.08 d. $9.60”

Managerial Accounting

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“This Year Last Year Units Sold 250,000 200,000 Sales Revenue $1,250,000 $1,000,000 Less: Cost of Goods Sold 875,000 700,000 Gross Margin $375,000 $300,000 Less: Operating Expenses 222,000 210,000 Net Income $153,000 $ 90,000 76. What are the company’s total fixed operating expenses per year? a. $60,000. b. $174,000. c. $150,000. d. $162,000.”,”4The company’s total fixe operating expense per year: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level1,472,000 – 1,210,000 = 5.24 / unit 250,000 – 200,000 Variable Costs x Units = Variable cost element5.24 x 200,000 = 1,048,000Fixed cost element = Total cost – Variable cost element = 1,210,000 – 1,048,000= $162

Managerial Accounting

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“The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit variable cost of $18. The company has budgeted the following data for November: I. Sales of $1,152,000, all in cash. II. A cash balance on November 1 of $48,000. III. Cash disbursements (other than interest) during November of $1,160,000. IV. A minimum cash balance on November 30 of $60,000. If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at 2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during November.92. The number of units of Product A budgeted to be sold during November is: a. 48,000 units b. 38,000 units c. 64,000 units. d. 48,500 units.”,”1Number of units budgeted to be sold in November: = Sales / Unit sales price= 1,152,000 / 24 = 48

Managerial Accounting

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“An income statement for Sam’s Bookstore for the first quarter of 19×2 is presented below: Sam’s Bookstore Income Statement For Quarter Ended March 31, 1992 Sales $900,000 Cost of Goods Sold 630,000 Gross Margin 270,000 Less Operating Expenses Selling $102,000 Administration 102,000 204,000 Net Income $ 66,000 ÍÍÍÍÍÍÍÍ On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. 77. The contribution margin for Sam’s Bookstore for the first quarter of 19×2 is: a. $180,000. b. $774,000. c. $144,000. d. $756,000.”,”377. The contribution margin for Sam’s bookstore for the first quarter of 19×2: Sales 900,000- Total VC: Cost of GS 630,000Selling 90,000 (90,000/50) = 18,000, 18,000 x 5Admin. 36,000Total Variable Costs 756,000 CM 144

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“An income statement for Sam’s[…]

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