that work in the establishment and each employee received a salary of $9.90 per hour and works a 40-hour week and a 50-week year‚ regardless of the number of haircuts. As rent and other fixed expenses he expends $1‚750 every month‚ plus $ 0.40 as the cost of hair shampoo used on all his clients. This saloon is performing haircuts exclusively and each client paid a flat price of $ 12.00. He wanted for us to evaluate a new compensation method for his employees. Under the new system the barbers will
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manufacturing costs except direct materials and direct labor. It includes items such as indirect materials‚ indirect labor‚ maintenance and repair on production equipment‚ and heat and light‚ property taxes‚ depreciation‚ and insurance on manufacturing facilities. 2 CORRECT All of the following would be classified as product costs except: A) the cost of air-conditioning the factory foreman’s office. B) depreciation on the machinery in the factory. C) the cost of shipping
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EXERCISE 3–1: Process Costing and Job-Order Costing [LO1] Which method of determining product costs‚ job-order costing or process costing‚ would be more appropriate in each of the following situations? * a. An Elmer’s glue factory. * b. A textbook publisher such as McGraw-Hill. * c. An Exxon oil refinery. * d. A facility that makes Minute Maid frozen orange juice. * e. A Scott paper mill. * f. A custom home builder. * g. A shop that customizes vans. * h. A
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commercial customers to $1‚000 per hour would reduce demand by 30 %. Ans : - It is common to business manager in a business unit to adjust different variables (fixed cost‚ variable cost and price strategy) to maximize the bottom-line or top-line to either maximize profit or minimize the operation cost. Provided the data as below‚ 3 variable costs indentified‚ they are power‚ operations‚ material. They are proportional to the revenue intake. Data provided Estimated changes January February
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Spreadsheet 13-29.xls Exercise 13-34 1. Transfer price = outlay cost + opportunity cost = $320* + $100† = $420 *Outlay cost = unit variable production cost †Opportunity cost = forgone contribution margin = $420 – $320 = $100 2. If the Fabrication Division has excess capacity‚ there is no opportunity cost associated with a transfer. Therefore: Transfer price = outlay cost + opportunity cost = $320 + 0 = $320 Exercise 13-35
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break even? To calculate the breakeven point‚ I took the budgeted contribution margin of $351‚200‚ divided by the budgeted units expected to be produced‚ which was 18‚000. This would give me the unit contribution margin. I then took the total fixed costs and divided it by the unit contribution margin. The calculation is as follows: 351‚200/18‚000= 19.51 This implies that 260‚000/19‚511= 13‚326 This calculation tells us that Waltham Motors will have to sell 13‚325 motors in order to break even.
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Question 1 Variable Costs Equipment costs: Power Wages and Salaries: Operations hourly personnel Fixed Costs Space costs: Rent‚ custodial services Equipment costs: Computer leases‚ maintenance‚ depreciation of computer equipment and office equipment / fixtures Wages and Salaries: Operations salaried staff‚ systems development and maintenance‚ administration‚ and sales Sales promotions Corporate services The group actively debated fixed versus variable labor expenses based
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If EasyFind’s variable costs are $10 per dozen‚ what is their total contribution each month at current prices? ($19 - 10) * 5‚470 = $49‚230 [+/- $1‚477] Total contribution = Unit Contribution * units sold QUESTION 3: What will be EasyFind’s new price if they choose to implement the price decrease? $19 * (1 - 20%) = $15.20 [+/- $0.46] New Price = Old Price * (1 - Price Reduction %) or New Price = Old Price - Old Price * Price Reduction% QUESTION 4: If EasyFind’s variable costs are $10 per dozen
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1. Inventory turnover is calculated by dividing (Points: 4) cost of goods sold by the ending inventory. cost of goods sold by the beginning inventory. cost of goods sold by the average inventory. average inventory by cost of goods sold. 2. The order of presentation of nontypical items that may appear on the income statement is (Points: 4) Extraordinary items‚ Discontinued operations‚ Other revenues and expenses. Discontinued operations‚ Extraordinary items‚ Other revenues and expenses. Other
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Manufacturing costs Account Nature or Classification Amount in Tshs 000 Direct Materials All variable 360‚000 Direct Labour All variable 200‚000 Overhead costs: Electricity and water 60% variable 60‚000 Managerial salaries 20% variable 100‚000 Maintenance costs 40% variable 100‚000 Depreciation 0% variable 120‚000 Indirect labor 50% variable 120‚000 Non manufacturing costs Accounts Nature or Classification Amount in Tshs 000 Administration expenses 0% variable 120‚000
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