Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company's products follows.
Standard: Enhanced: Estimated production volume 3,000 units 4,000 units Direct-material cost $25 per unit $40 per unit Direct labor per unit 3 hours at $12 per hour 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow: Orders Processed Machine Hours Worked Inspection Hours Standard 300 18,000 2,000 Enhanced 200 22,000 8,000 Total 500 40,000 10,000 Top management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencies.
Estimated production volume
Direct-material cost
Direct labor per unit
Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively.
Data relevant to these activities follow:
Standard
Enhanced
Total
Top management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencies.
Using a Microsoft Excel format for calculations, complete the following:
Many assets are presented at historical cost. Why does this accounting principle cause difficulties in financial statement analysis?
What adjustment is required regarding Paul's purchase of the partnership interest? Must a section 754 election be made?
What are some ways that customers affect a firm's costs and calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.
In November total cash collections - Wright Corporation began its operations on Sept. 1 of the current year
When more than one factor causes variations in the variable element of a mixed cost, multiple regression analysis. the high-low method is generally more accurate than the least-squares regression method in analyzing cost behavior.
Alicia was also the life tenant of a trust (fair market value of $2,000,000) created by her late husband Bert. (The executor of Bert's estate did not make a QTIP election.) In October, Alicia's estate received an interest payment of $11,500 ($6,00..
An examination of the accounting records of a fictitious business, the Clowney Company, disclosed a high contribution margin ratio and production at a level below maximum capacity.
Reducing the price of a substitute product the firm also produces and reducing the price of a complementary product the firm also produces.
Evaluate the gain on the sale but difficulty figuring out the nature of the gain. Can somebody help me out?
annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent. Using cost-plus pricing, what is the cost per unit and the price What are advantages and dis..
Indicating how the CAP, the APB, and the FASB operated or operate. Cite specific developments that tend to support your answer.
Prepare a statement of cost of goods manufactured and an income statement
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd