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The maintenance department's costs are allocated to other departments based on the number of hours of maintenance use by each department. The maintenance department has fixed costs of $500,000 and variable costs of $30 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. More maintenance workers can be added if greater maintenance is demanded by the other departments without affecting the fixed costs of the maintenance department. The maintenance department expects to provide 10,000 hours of maintenance
.a. What is the application rate for the maintenance department?
b. What is the additional cost to the maintenance department of providing another hour of maintenance?
c. What problem exists if the managers of other departments can choose how much maintenance to be performed?
d. What problem exists if the other departments are allowed to go outside the organization to buy maintenance services?
jim armstrong operates a small company that books entershytainers for theaters parties conventions and so forth. the
The contribution margin in the campus store is $110,000. Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location. How much are total variable costs?
you have the following ledger balancescash 153700 debit balanceaccounts receivable 165500
William's basis in the WAM partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000. fair market value $40,000), and inventory (basis $30,000, fair market va..
Management is considering dropping product lines A and B.If 50% of the fixed costs for dropped products could be avoided, what recommendation would you make to management? Quantify you answer.
prepare journal entries for the following transactions. if no entry is required write no entry omit explanations.mar.1.
A company reports its 2007 cost of goods sold at $15.0 million. Its ending inventory for 2007 is $1.6 million and for 2006, ending inventory was $1.2 million. How much inventory did the company purchase during 2006?
Explain the role of the Financial System Why do we need financial markets? Why do we need financial intermediaries? What are types and functions of financial intermediaries?
clopack company manufactures one product that goes through one processing department called mixing. all raw materials
an investment fund is considering two long term investments. which investment offers the best rate of return assuming
In a liquidation subject to section 332, Rose distributies assets to Pheasant and Crystal in accordance with their ownership intersts. Discuss the tax consequences of the liquidation for Rose, Pheasant, and Crystal.
superior manufacuring produced and sold 50000 temperature gauges last year for 42 each. this level of activity amouned
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