Porter Company manufactures furniture, including tables. Selected costs are given below: 1.The tables are made of...

Porter Company manufactures furniture, including tables. Selected costs are given below: 1.The tables are made of wood that costs $100 per table. 2.The tables are assembled by workers, at a wage cost of $40 per table. 3.Workers assembling the tables are supervised by a factory supervisor who is paid $38,000 per year. 4.Electrical costs are $2 per machine-hour. Four machine-hours are required to produce a table. 5.The depreciation on the machines used to make the tables totals $10,000 per year. The machines have no resale value and do not wear out through use. 6.The salary of the president of the company is $100,000 per year. 7.The company spends $250,000 per year to advertise its products. 8.Salespersons are paid a commission of $30 for each table sold. 9.Instead of producing the tables, the company could rent its factory space for $50,000 per year. Required: Classify these costs according to the various cost terms used in the chapter. Carefully study the classification of each cost. If you don’t understand why a particular cost is classified the way it is, reread the section of the chapter discussing the particular cost term. The terms variable cost and fixed cost refer to how costs behave with respect to the number of tables produced in a year.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Consider the following information: Alma’s Company manufactures furniture, including tables. Selected costs are given below: 1....

Consider the following information: Alma’s Company manufactures furniture, including tables. Selected costs are given below: 1. The tables are made of wood that costs $100 per table. 2. The tables are assembled by workers, at a wage cost of $40 per table. 3. Workers assembling the tables are supervised by a factory supervisor who is paid $38,000 per year. 4. Electrical costs are $2 per machine-hour. Four machine-hours are required to produce a table. 5. The depreciation on the machines...

A division of the Winston Furniture Company manufactures dining tables and chairs. Each table requires 40...

A division of the Winston Furniture Company manufactures dining tables and chairs. Each table requires 40 board feet of wood and 3 labor-hours. Each chair requires 16 board feet of wood and 4 labor-hours. The profit for each table is $50, and the profit for each chair is $40. In a certain week, the company has 3200 board feet of wood available and 520 labor-hours available. How many tables and chairs should Winston manufacture to maximize its profit? (Let x...

A furniture company manufactures wooden tables . Management schedules overtime every weekend to reduce the backlog...

A furniture company manufactures wooden tables . Management schedules overtime every weekend to reduce the backlog on the most popular models. The automatic routing machine is used to cut certain types of edges on the tables. The following orders need to be scheduled for the routing machine: order time arrived hours estimated machine hours due date hours 1 1 9 20 2 0 7 21 3 6 8 12 4 5 3 8 5 3 12 18 The due dates...

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the...

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $ 9,600 Depreciation on factory equipment 16,800 Factory supervisor salary 50,000 Sales commissions 23,400 Lubricants used in factory equipment 3,800 Insurance costs for factory 21 comma 000 21,000 Wages paid to maintenance workers 115 comma 600 115,600 Fabric used to upholster furniture 10 comma 700 10,700 Freight minus −in (on raw materials) 3 comma 300 3,300 Costs...

Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold...

Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company’s Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division’s sales manager. April 10,000 desk-and-chair sets May 12,000 desk-and-chair sets June 15,000 desk-and-chair sets Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of...

Scholastic Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units that are sold...

Scholastic Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Midwest. The controller of the company’s Desk Division is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the division’s sales manager. April 10,000 desk-and-chair sets May 12,000 desk-and-chair sets June 15,000 desk-and-chair sets Each desk-and-chair set requires 10 board feet of pine planks and 1.5 hours of...

Scholastic Furniture, Inc. manufactures a variety of desks, chairs, tables, and shelf units that are sold...

QUESTION 1. The Interiors Company located in Dominica manufactures executive desks. Selected costs associated with the...

QUESTION 1. The Interiors Company located in Dominica manufactures executive desks. Selected costs associated with the manufacture of the executive desks and the general operations of the company are given below: a) Wood used in the manufacture of the executive desks, at a cost of $500 per desk. b) The executive desks are assembled by workers, at a cost of $100 per desk. c) Workers assembling the executive desks are supervised by a factory supervisor who is paid $75,000 per year. d) Electrical cost...

Oakwood Inc. manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company...

Oakwood Inc. manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During November, the following results were reported for the production of American Oak armchairs: Unit produced 1540 armchairs Direct materials purchased 19000 board feet Direct materials issued into production 17350 board feet...

Oakwood, Inc., manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company...

Oakwood, Inc., manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During November, the following results were reported for the production of American Oak armchairs: Units produced 1,670 armchairs Direct materials purchased 18,500 board feet Direct materials issued into production 17,250 board feet...

Subjects