following costs at the given levels of production: Month Units Produced Total Costs January 20 $ 20‚000 February 25 22‚500 March 30 25‚000 April 35 27‚500 May 40 30‚000 June 45 32‚500 Required: a. Use the high-low method to compute the variable and fixed elements of Gamma’s total costs. b. Estimate the total cost of making 50 boats‚ assuming that total fixed costs and the variable cost rate do not change. 3- The Manager of Alpha company is considering droping product C. the fixed cost is allocated
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Chapter 6: Master Budget and Responsibility Accounting A budget is the quantitive expression of a proposed plan of action by management for a specified period Also to aid to coordinate what needs to be done to implement that plan A financial budget quantifies managers’ expectations regarding a company’s income‚ cash flows‚ and financial position Strategy specifies how an organization matches it capabilities with the opportunities in the marketplace to accomplish its objectives Stratigic plans are
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budget that will give a breakdown of all the cost that will be involved in the seminar. Proposed Seminar Budget 1. Conference room rental $175.00 $175.00 2. Audiovisual equipment Rental $75.00 3. 4 presenters @ $500.00 $2‚000.00 4. 45 workbooks @ $15.00 $675.00 5. 45 lunches @ 10.00 $540.00 6. 45 coffees @ $3.50 $158.00 Subtotal $3‚623.50 7. Indirect costs @ 25% of $3‚622.50 $906
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the following cost information about the costs of making CMCBs in 2014 and the expected costs in 2015: Current Costs in 2014 Expected Costs in 2015 Variables Manufacturing Costs DM Per Unit $ 180 $ 170 DML per Unit $ 50 $ 45 Variable MOH per Batch $ 1‚600 $ 1‚500 Fixed Manufacturing Cost Fixed MOH that can be avoided if CMCBs are not made $ 320‚000 $ 320‚000 Fixed MOH that can
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priced order they should sell excess capacity at any price that is equal to or greater than variable costs. He argues that idle capacity is worse since it has no contribution to overheads whereas a lower price above variable costs would have some positive contribution to the fixed costs and therefore improve profitability for the division. He believes a price of $40 is insufficient to cover the total costs and that the systems division does not want to subsidize the overheads of outside buyers. What
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SCM3006 Operations and Supply Chain Management Group Project Product: Baked Potato 1. Introduction 1.0 Introduce Baked Potato A baked potato is sometimes called a jacket potato in the United Kingdom. The baked potato has been popular in the UK and French for many years. In the mid-19th century‚ jacket potatoes were sold on the streets by hawkers during the autumn and winter months. In London‚ it was estimated that some 10 tons of baked potatoes were sold each day by this
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manufacturing cost as a percentage of selling price Product (Variable manufacturing cost/WSP Production) Mark up Lipstick 16.8/21 80% (21/16.8)-1 25% Nail polish 10.5/15 70% (15/10.5)-1 43% Creams 2.8/5.6 50% (5.6/2.8)-1 100% 2010 Product Lipstick 15.3/18 85% (18/15.3)-1 18% Nail polish 9.3/11.6 80% (11.6/9.3)-1 25% Creams 3.3/6.6 50% (6.6/3.3)+1 100% *Note that these calculations are done for goods produced in the year in question Question 2 (cost of goods manufactured
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Fitness Cost Volume Analysis is helpful to managers in decision-making activities such as setting prices‚ determining product mix‚ and maximizing the use of production facilities. (Kimmel‚ Weygandt‚ & Kieso‚ 2009) To begin Cost Volume Analysis of a potential new Snap Fitness site‚ the following data must be considered: (1) total fixed costs‚ (2) incremental variable costs‚ (3) monthly revenue per customer‚ and (4) and desired return on investment. Projected total monthly fixed costs are $6
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both production and marketing related. From a production perspective‚ there were 3 major areas of concern all of which were unfavorable with respect to Variance Analysis (As shown in Exhibit 3): 1. Direct Labor 2. Variable Overhead 3. Fixed Cost The $139‚200 unfavorable Direct Labor Variance can be attributed to many reasons however it is most likely linked to the management team. Due to the early retirement of the sales manager‚ the production manager being hospitalized and the accountant
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legendary coach Bo Pitterno‚ has come more fame‚ the need for a bigger stadium‚ and more complaints about seating‚ parking‚ long lines‚ and concession stand prices. Southwestern Universitys president‚ Dr. Marty Starr‚ was not only concerned about the cost of expanding the existing stadium versus building a new stadium‚ but also about the ancillary activities. He wants to be sure that these various support activities generate revenue adequate to pay for themselves. Consequently‚ he wants the parking
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