inventory and ABC Ltd manufactured 50‚000 units during the period. The manufacturing costs and selling and administrative expenses were as follows: Total cost Rs. Beginning inventory: Direct materials Direct labour Variable factory overhead Fixed factory overhead Total Current period costs: Direct materials Direct labour Variable factory overhead Fixed factory overhead Total Selling and administrative expenses: Variable Fixed Total Instructions: 1. 2. 3. Prepare an income statement based on the variable
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Problem P8-2A Variable Cost per unit: Direct materials $50 Direct labor $25 Variable manufacturing overhead $20 Variable selling and administrative expenses $18 Total Variable Cost $113 Fixed cost per unit: Total Cost ÷ Budgeted Volume = cost per unit Fixed manufacturing overhead $600‚000 ÷ 50000 = 12 Fixed selling and administrative expenses $400‚000 ÷ 50000 = 8 Fixed cost per unit 1‚000‚000 $20 Total unit cost = 113 + 20 = $133 (a) Desired
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financial data from operations. The controller was heard saying‚ "Why does the president need all this information? He probably doesn ’t read half of the report. He ’s an old English professor and probably doesn ’t know the difference between a cost and a revenue." Required: a. What is the probable role of the monthly report? Ans: The monthly report is the report card for the University’s internal accounting system‚ these monthly reports are a formal part of the University’s information
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Introduction to Management Science‚ 11e (Taylor) Chapter 1 Management Science 1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: FALSE Diff: 1 Page Ref: 2 Section Heading: The Management Science Approach to Problem Solving Keywords: scientific approach AACSB: Analytic skills 2) Management science techniques can be applied only to business and military organizations. Answer: FALSE Diff: 1 Page Ref: 2 Section Heading:
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income‚ as computed by Paramount? As computed by Paramount it was not an accounting hit‚ since it resulted in a loss of $60 million. The gross revenue of $191 million could not exceed high costs like Production costs $66.8 Gross profit participation be directors‚ actor $30.6 Promotion & distribution costs $67.2 Distribution fee $61.1 2. How much in gross box office receipts will the studio have to receive from theaters before Groom and Roth receive any money under their net profit
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* b. Split up costs in fixed and variable the best you can. * c. Look for an average price per motor bike to determine how many bikes Envy Rides has sold. * d. Calculate the variable cost per cycle sold‚ and assume it is constant. * e. Draw graph with MC-curve (at the level of the variable cost per cycle)‚ and the average total costs curve. * f. Be sure to have number of cycles sold on the horizontal axis. Income statement for the year 2009 Variable costs: * Salaries
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methods compare‚ whether older methods will be still relevant and can they really be replaced by more contemporary techniques if those methods are alternative to each other. The results should show similarities and differences between each method used in cost and management
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in profitability and dealing the weaker competitors who failed in the industry. For Meli Marine‚ keeping their customer relationships and costs under control which took cautious efforts from management. Managing variable costs became difficult. The container carriers were exposed to fuel prices‚ known as “bunker costs” which could be 20-40% of cash operating costs and fluctuated with the price of crude oil. Firms attempted to apply the “bunker adjustment factor” when oil prices rose‚ however‚ a lag
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is going to cost as the board of directors would not give them a specific amount to spend * Allocated budgeting – Urban Fashion know how much the budget is that they would have to pay things. In economics‚ fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related‚ such as salaries or rents being paid per month‚ and are often referred to as overhead costs. This is in contrast to variable costs‚ which are volume-related
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) ) pa 11 Fi nanci aI Analysis I. Section 9 Financial Statement Formats The formats of the Summary Statement of Income and departmental statements can of coursebe designed to provide only ODeamount column to record figures für the time period covered by the statement. While the primary purpose of any of these statements is to present the revenue and expenses für the most recent accounting period‚ the true significance of such amounts can only be fully understood when compared with budgets
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