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Question
Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the following operating results next year for each type of customer:
Operating Results
Residential
Commercial
Sales
$60,000
$140,000
Contribution margin ratio
50%
30%
Slosh expects to have $18,000 in fixed expenses next year. What would Slosh's total dollar sales have to be next year to generate a profit of $90,000?
Daniele 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
500 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:
Cost Data
Wages and salaries
$280,000
Depreciation
$200,000
Occupancy
Total
$620,000
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Order Processing
60%
10%
100%
20%
35%
45%
40%
The activity rate for the Fabrication activity cost pool is closest to _______ per machine hour.
Analyze the potential opening of the patio from a qualitative standpoint. Include a discussion of the pros and cons of the patio and discuss the implications of each.
ABC currently employs traditional costing procedures, applying $410,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering the shift to activity-based costing and creation of individual cost pools that will..
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Jack's Outdoor World is the company which manufactures and sells garden furniture. They've been operating for past ten years and have the comfortable share of market.
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