Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities? Researching new processing methods Shipping orders to grocery stores A) Organization-sustaining Unit B) Batch Batch C) Product Unit D) Organization-sustaining Batch
Blog
Financial results are:
Financial results are:
Diltex Farm Supply is located in a small town in the rural w…
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. December cash disbursements for merchandise purchases would be:
Adams Enterprises makes a variety of products that it sells…
Adams Enterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours $3.20 per hour Processing batches Number of batches $103.80 per batch Processing orders Number of orders $98.65 per order Serving customers Number of customers $1,488.00 per customer The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company’s products, which Adams Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity “Supporting assembly” for this customer this past year was:
Braston Corporation is a small wholesaler of gourmet food pr…
Braston Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow:· Sales are budgeted at $350,000 for November, $330,000 for December, and $340,000 for January.· Collections are expected to be 70% in the month of sale, 26% in the month following the sale, and 4% uncollectible.· The cost of goods sold is 70% of sales.· The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase.· Other monthly expenses to be paid in cash are $20,100.· Monthly depreciation is $22,000.· Ignore taxes. Total December cash disbursements would be:
Diltex Farm Supply is located in a small town in the rural w…
Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. Expected cash collections in December are:
New product research is an example of (an):
New product research is an example of (an):
If company A has a higher degree of operating leverage than…
If company A has a higher degree of operating leverage than company B, then:
Simmons Corporation, a manufacturing company, has provided t…
Simmons Corporation, a manufacturing company, has provided the following financial data for April: Sales $340,000 Variable production expense $43,000 Variable selling expense $21,000 Variable administrative expense $33,000 Fixed production expense $62,000 Fixed selling expense $67,000 Fixed administrative expense $88,000 The firm had no beginning or ending inventories. The contribution margin for April was:
A company increased the selling price for its product from $…
A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses and variable expense per unit remained unchanged. How would these changes affect the break-even point?