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Hanson, Inc. makes 1,000 units per year of a part called a "prositron" for use in one of its products. Data concerning the unit production costs of the prositron follow: Direct Materials $342 Direct Labor 80 Variable Manufacturing OH 48 Fixed Manufacturing OH 520 Total $990 An outside supplier has offered to sell Hanson, Inc. all of the prositrons it requires. If Hanson, Inc. decided to discontinue making the prositrons, 10% of the above fixed manufacturing overhead costs could be avoided. Required: Assume Hanson, Inc. has no alternative use for the facilities presently devoted to production of the prositrons. If the outside supplier offers to sell the prositrons for $850 each, should Hanson, Inc. accept the offer? Fully support your answer with appropriate calculations.
Purpose a statement of cash flows, using the direct method to show cash flows from operating activities.
Prepare the year-end entries for any amounts that could be recorded as a result of each of the above contingencies.
Effect of errors in journalizing and posting on trial balance and bookkeeper for Shirley Temple's dance studio made the following errors in journalizing and posting
The required volume of output to produce the parts will not require any incremental fixed overhead. Incremental variable overhead cost is $2.00 per unit. Should Kimball make or buy the parts?
Illustrate what is the rationale of the GASB for requiring two sets of financial statements, each with a different measurement focus and basis of accounting for governmental activities?
Preparation of journal entries to record issue of shares and dividend and Prepare journal entries to record the above transactions.
Purpose a vertical analysis of the income statement showing appropriate percentages for each item listed above. and what additional information would you need to determine whether these percentages are good or bad?
Prepare and interpret a complete ratio analysis of the firm's 2006 operations and Summarize your findings and make recommendations.
Monthly sales are sold 10% for cash, 90% for credit. Credit sales are collected 40% in the month of sale and 60% the following month. Sales for the first quarter are as follows: Compute cash collections for February.
Determine Actual warranty costs
Depict the regression line on your graph. Use your graph to calculate the regression line using the criteria of economic plausibility, goodness of fit as well as significance of the independent variable.
The monitoring of costs has been continuing, and balance sheets are looking worse. What consequences, positive or negative, might this have for fraud prevention, both now and in the future?
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