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Last year, Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera manufactured and sold 19,250 handbags. Each handbag has the standard requiring 4 feet of material at the budgeted cost of $2.50 per foot and 45 minutes of sewing time at the cost of $0.28 per minute. The handbags sell for $45.00. Actual costs for the production of 19,250 handbags were $201,600 for materials (80,000 feet at $2.52 per foot) and $260,400 for labor (868,000 minutes at $0.30 per minute).
Ace Manufacturing earns revenues of $2,100,000 annually on 150,000 unit sales of industrial part. The part is priced at $14 each. A potential customer, in industry that the company has not previously served
You're interested in developing the budget but are struggling with basics - do the numbers have to be exact? Can a budget have any flexibility in it? First, describe what a budget is.
Make a distinction between a product item, a product mix, and a product line. Give examples.
Research what is the FORECAST for Federal Budget Deficit for fiscal year 2010. What are the economic implications of Government running a deficit year after year?
Create a memo on the ‘state of the company's industry' and associated risk factors.
The payroll bank account is reconciled by the chief accountant, who also prepares the several quarterly and annual tax reports.
To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and costing accounting. Why is a cross-functional team desirable when implementing the target costing approach..
What are some of the critical assumptions behind Cost-Volume-Profit Analysis and why is CVP typically employed by organizations more often than time value money tools?
Dealing with people is probably the most difficult thing we will ever encounter in life.
Recognize which costing system? Job order or processcost? The following companies would primarily employ: (a) Quaker Oats, (b) Ford Motor Company, (c) Kinko's Print Shop, and (d) Warner Bros. Motion Pictures
What is the profitability of Unfocused Books' three departments and what recommendations would you make to the owners?
uppose the company decides that only 1,400 units can be sold at a price of $5,000 and, therefore, the target cost cannot be reached. The company is considering. dropping the steam feature, which adds $600 of variable cost per unit. With this featu..
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