User Account

All Pages

Prepare a differential analysis dated july 19 2014 to

Assignment Help Accounting Basics
Reference no: EM13567861

Eclispe Computer Company has been purchasing carrying cases for its portable computer at a delivered cost of $65 per unit. The company, which is currebtly operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The fully absorbed units costs to produce comparablr carrying cases are expected to be as follows:

Direct Materisl: $30

Direct labor: $25

Factory Overhead (40% of direct labor) $10

_______________________________________

Total Costs per Unit: $65

If Eclipse Computer Company manufactures the carrying cases, fixed overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs.

a. Prepare a differential analysis, dated July 19, 2014, to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.

b. On the basis of the data presented, would it be advisable to make the carrying cases or to continue buying them? Explain.

Reference no: EM13567861

Questions Cloud

Omni corporations board of directors met over growing : omni corporations board of directors met over growing concern about the drop in the price of their stock. the company
The company will pay march salaries and taxes withheld on : on march 1 2011 the accounting records of stein company showed the following liability accounts and balances accounts
Crede inc has two divisions division a makes and sells : crede inc. has two divisions. division a makes and sells student desks. division b manufactures and sells reading
Benson company is considering the replacement of a machine : benson company is considering the replacement of a machine that is presently used in production. the following data are
Prepare a differential analysis dated july 19 2014 to : eclispe computer company has been purchasing carrying cases for its portable computer at a delivered cost of 65 per
Csh flow from long term investing activities totaled : w.c cycling had 55000 in cash at year end 2007 and 25000 in cash at year-ended 2008. cash flow from long term
The store has a marginal tax rate of 30 percent what is the : a proposed expansion project is expected to increase sales of jl tickers store by 35000 and increase cash expenses by
Your boss has asked you a communication specialist to write : 1.your boss has asked you a communication specialist to write an informative white paper about the business of
Prepare a schedule of cash disbursements for purchases for : olson company has the following datamonthnbspnbspnbspnbspnbspnbspnbspnbsp budgeted

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the total rent due for the month

If the store produces $170,000 in gross sales in a month, what is the percentage rent in that month? What is the total rent due for the month?

  Explain the four methods of allocating joint costs

Explain when you would use a process costing system and what the purpose of equivalent units is.

  Tax levies in the ingham county tax agency fund

Record the tax levies in the Ingham County Tax Agency Fund. Record the collection from the 2011 tax levies in the Ingham County Tax Agency Fund and the specific liabilities owed each fund and unit (Round all amounts to the nearest whole dollar.)

  Prepare a cost of goods sold section for year ending

Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $2,000.The ending merchandise inventory is $25,000. Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).

  How does discrete presentation differ from blending

Many public universities are quite similar to their private counterparts. Indeed, some large state universities receive less than 25 percent of their resources from the state. How, then, can you account for the substantial differences in their rep..

  Amount and character of loss reported on joint return

During 2010, Vera Venture sold her interests in two small business corporations. Her loss on Ballpoint Pen Corporation stock was $120,000 and her loss on Pencils Corporation stock was $20,000. Both losses qualify under Code Sec. 1244. Vera files j..

  Classify the following costs as product costs

Classify the following costs as product costs (PC) or period expenses (PE).

  Prepare journal entries to record the copier sale

prepare journal entries to record (a) the copier's sale; (B) the adjustment on December 31,2011, to recognize the warranty expense; and (c)the repairs that occur in November 2012.

  Using the criteria for distinguishing between operating and

extractor company leased a machine on july 1 2013 under a 10-year lease. the economic life of the machine is estimated

  Lease contract or interpretation of the test

How can test be circumvented through either the structuring of the lease contract or interpretation of the test? What are other ways in which lease capitalization could be avoided through the structuring of lease terms or interpretation of the tes..

  Freds fasteners is a manufacturing company that has decided

freds fasteners is a manufacturing company that has decided they are large enough to choose to be self-insuring for

  Dividend should be distributed as

In the company's first year of operation, no dividends were paid. During the second year, Ten Sports paid cash dividends of $50,000. This dividend should be distributed as follows:

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd