Prepare a performance report that would help the owner

Assignment Help Managerial Accounting
Reference no: EM13962482

Facilitator Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, known as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below:

1424_260-B-M-A-F-B (382).png

Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $209 per exchange completed on the planning budget; whereas, the average actual office expense is $172 per exchange completed. Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $4,100. All of the company's revenues come from fees collected when an exchange is completed. 

Required: 

1. Evaluate the report prepared by the bookkeeper. 
2. Prepare a performance report that would help the owner/manager assess the performance of the company in May. 
3. Using the report you created, evaluate the performance of the company in May.

 

Reference no: EM13962482

Questions Cloud

Geographical reach : Describe how each of the functional areas is conducted at Ducati. Give one example of how IT can support each of these functional areas at Ducati. What did you find interesting? What company is the subject for your Business Report and what problem ca..
Difference between the abstract class and interface : 1. What is the difference between the Abstract Class and Interface.2. Write a java Program that counts number of words in each line of the file.
Introducing a successful employee incentive plan : List and describe the necessary factors for introducing a successful employee incentive plan. What are some factors to consider for improving employee morale?
What are some potential pitfalls with your recommendations : As noted in the chapter-opening vignette, Toyota ran into trouble for two reasons. One, was that the company centralized most decision-making in their corporate headquarters. The second, was that the CEO pressured top engineers to cut costs to improv..
Prepare a performance report that would help the owner : Prepare a performance report that would help the owner/manager assess the performance of the company in May.
Determine the average length of the waiting line : Drivers who come to get their licenses at the Department of Motor Vehicles have their photograph taken by an automated machine that develops the photograph onto the license card and laminates the complete license. determine the average length of the ..
Mental models of industrialization to developing nations : What does Patrician Werhane mean by saying that we recklessly export our mental models of industrialization to developing nations? Give an example of this process gone wrong.
Established criteria in evaluating human resource function : Since we are at the end of this class, this is the perfect time to reflect upon the achievement of Course Outcomes and Competencies. Apply principles and practices of human resource function. Demonstrate working knowledge of how the human resource fu..
Describe the various levels of software testing : Describe the various levels of Software testing and draw a diagram if possible.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Please explain why the current book value of the capital

Please explain why the current book value of the capital structure is likely to be different than a company's target capital structure? Also, give the differences between current book value of the capital structure and a company's target capital stru..

  The two main surgical units and their related data follow

Health Coop is an outpatient surgical clinic that wants to better understand its costs. It decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery.

  Equivalent units-assigning costs using production cost

Calculate the cost per equivalent unit for each of the 3 cost items and in total. Calculate the cost of items completed in Aug and the cost of ending work in process inventory. Reconcile the sum of the 2 costs in part b to the sum of beginning WIP an..

  Do you agree with caltexs decision not to include measures

Do you agree with Caltex's decision not to include measures of changes in operating profit from productivity improvements under the financial perspective of the balanced scorecard? Explain briefly.

  Calculate the cost per equivalent unit of production

Calculate the cost per equivalent unit of production and cost of completed units for the month of April

  Discuss the way in which bhp billiton has demonstrated

According to Sikka (2008, p.291), "The burgeoning corporate social responsibility literature rarely focuses on the anti-social practices of accounting firms...Accountancy firms are on a collision course with civil society".

  Why is it important for the company to know its wacc

Why is it important for the company to know its WACC?  If Company A wanted to lower its WACC what could it do?

  Which product should be produced if the company

Which product should be produced if the company has 1,000 additional machine hours available?

  Difference between an operating budget and a cash budget

What is the difference between an operating budget and a cash budget, explain what zero-based budgeting is and how it can improve the efficiency of the organization?

  Prepare an executive summary to ginnie adams

Bottled Water Company Comprehensive Master Budget - Prepare an executive summary to Ginnie Adams, the owner of the Bottled Water Company, with your results from the comprehensive budget for the new product and how launching the new product would af..

  Cvp analysis of detroit disk

Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Calculate Detroit Disk's break-even point for the current year in number of video di..

  Does the fact that small jobs have a higher cost

Does the fact that small jobs have a higher cost in the current year suggest that prices for small jobs should be increased?

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!

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