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Backwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $80 per table, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. It is Backwoods' policy to add a 50% markup to full costs. a. Backwoods Incorporated is invited to bid on an order to supply 100 rustic tables. What is the lowest price Backwoods should bid on this one-time-only special order? b. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Backwoods Incorporated is invited to submit a bid to the hotel chain. What is the lowest price per unit Backwoods should bid on this long-term order?
Melanie could like you, the staff accountant, to charge the advertising expense for the Hobby department to Toy's. With only these facts, would you modify the accounting for the two departments?
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Their taxable income for the current year, excluding the loss from the tornado, is $250,000. Find out the amount of Olaf and Anna's loss and the year in which they should take the loss.
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Remove their ability to represent taxpayers in the future. That puts them in the position of having to 'represent' the tax system as well. W hom does the accountant owe allegiance
What problems are associated with using the average cost per unit as a performance measure? Illustrate what problems are associated with using the variable cost per unit as a performance measure?
What could be the cost of the ending inventory
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