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Bell Company makes fax machines. Currently Bell makes all components of the fax machine in house. An outside company has offered to supply one component, part number B48 for $8 each. Bells uses 15,000 of these components per years. Costs of B48 are as follows.
D.M. $4.00
D.L. 2.00
Variable OH 1.50
Fixed OH 3.00
Assume that fixed overhead is allocated and cannot be avoided. Should Bell purchase the part from the outside supplier and how much will income increase or decrease.
What are the various kinds of budgets? Please explain each, which type of budget is best for your selected company?
The production involves a two-stage process. Stage 1 Moulding Process involves melting raw plastic resins and mixing them with colour pigments. The heated mixture is then injected into a multiple-cavity mould to form syringes
Record the preceding events in a horizontal statements model. In the cash flows column, designate the cash flow as operating activities (OA), investing activities (IA), or financing actives (FA)
Prepare journal entries for the selected transactions of Deshawn Company for 2010 - Prepared an adjusting entry to record the accrued interest on the Clark note.
Recast the full costing income statement for 2014 into a variable costing format. Does it appear, as Sanjay Patel contends, that the more the company sells, the more it loses?
On the third day in your role as accountant the general manager has asked you to review the results of 2012 and 2013 to try and determine if there is a relationship between the number of meals prepared per month and the administration costs whi..
Near end of 2011, the management of Simid Sports Co., merchandising company, prepared the following estimated balance sheet for December 31, 2011: Simid Sports' single product is bought for $30 per unit and resold for $60 per unit.
A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%. If her proposal is adopted, how much net operating income would increase?
"Both Return on Investment (ROI) and Economic Value Added (EVA), when used as performance measures in an organisation, encourage managers to be short-term in their focus and decision making".
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
Variable manufacturing overhead costs $1,900,000 Fixed manufacturing overhead costs $1,600,000 Manufacturing overhead application base Expected Direct Labour hours
A $10,000, 8%, 10-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?
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