470) $120‚555 $12‚455 F Variable expenses (50% of revenues) 54‚020 60‚277 6‚227 U Fixed expenses 53‚870 55‚000 1‚180 U Total expenses 107‚870 115‚277 7‚457 U Profit $230 $5‚278 $5‚048 F The actual profit meets the budgeted target of $230‚ therefore the manager of Jane-HW7 location is entitled to at least $1‚000 bonus. The total bonus amount = $1‚000 + ($5‚278 - $230) /10 x $1 = $1‚504.80 Budgeted Actual Cars washed 18‚400 12‚690 Price per car wash $10 $9.50 Variable cost $5 $4.75 Contribution
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TEST BANK > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add‚ modify‚ and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options‚ such as feedback and images‚ are available for question creation. Add Creation Settings Name Chapter 1--Fundamental Concepts Description Instructions Modify Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following
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What is a static budget? A static budget is a budget that does not change as volume changes. If a company’s annual master budget is a static budget‚ the budget for sales commissions expense will be one amount such as $200‚000 for the year. In other words‚ in a static budget the budgeted amount for sales commissions expense will remain at $200‚000 even if the actual sales during the year are $3 million‚ $4 million or $5 million. In contrast to a company’s static master budget‚ the company’s sales
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and evaluating performance. Three major classifications of costs were discussed in this chapter—variable‚ fixed‚ and mixed. Mixed costs consist of variable and fixed elements and can be expressed in equation form as Y = a + bX‚ where X is the activity‚ Y is the cost‚ a is the fixed cost element‚ and b is the variable cost per unit of activity. Several methods can be used to estimate the fixed and variable cost components of a mixed cost using past records of cost and activity. If the relation between
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Description / Instructions: Complete the Week 1 WileyPLUS Practice Quiz. Multiple Choice Question 41 The proprietorship form of business organization generally receives favorable tax treatment relative to a corporation. combines the records of the business with the personal records of the owner. is classified as a separate legal entity. must have at least two owners in most states. Multiple Choice Question 45
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a cost formula that can be used to predict cost of an activity for a month‚ a quarter and a year. In preparing cost formula using least squares method‚ intercept represents fixed cost and slope represents the variable cost rate. Important Formula: Cost formula = Fixed cost + Variable rate * Level of activity Part 1 Step 1 Prepare a cost formula using the least squares method. x = $3‚212 + $15.15 * Number of orders received Part 2 Step 1 Use the cost formula to predict receiving orders
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Problem As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces. Alternatives Status Quo: The company will continue to produce the standard compressor to satisfy the requirements for the automatic paint system and the demand that currently exists for this
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Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with
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relevant to present decisions. Question 6 1.5 out of 1.5 points In a period when anticipated production is 10‚000 units‚ budgeted variable costs are $85‚000 and budgeted fixed costs are $45‚000. If 12‚000 units are actually produced‚ what is the expected total cost? Selected Answer: $147‚000 Correct Answer: $147‚000 Question 7 1.5 out of 1.5 points Variable cost per unit Selected Answer: does not change when the number of units produced increases. Correct Answer: does not change
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company’s factory building would be classified as a(n) Student Answer: sunk cost. opportunity cost. period cost. variable cost. manufacturing cost. Instructor Explanation: Chapter 2 Points Received: 6 of 6 Comments: 4. Question : (TCO A) Within the relevant range‚ variable costs can be expected to Student Answer: vary in total in direct proportion to changes in the activity level. remain constant
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