Question

In: Accounting

Blook Company manufactures organic cosmetics and has summarized the following monthly costs observed at various activity...

Blook Company manufactures organic cosmetics and has summarized the following monthly costs observed at various activity levels over their first year of operations. Considering your knowledge of variable costs and fixed costs within the relevant range determined the following requirements below.

Activity level Rent Expense Direct Materials

3,000 20,000 20,000

6,000 20,000 36,000

9,000 32,000 45,000

12,000 32,000 60,000

15,000 32,000 75,000

18,000 32,000 90,000

21,000 32,000 105,000

24,000 32,000 120,000

27,000 40,000 146,500

   30,000 40,000 175,000

33,000 40,000 220,000

Required

1. Variable cost rate within the relevant range.

2. Fixed cost within the relevant range.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures...
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 710,000 100,000 parts Inspecting product 985,000 1,500 batches Processing purchase orders 190,000 700 orders Paying suppliers 260,000 500 invoices Insuring the factory 385,000 40,000 square feet Designing packaging 160,000 2 models Assume that the following information is available for the company’s two products for the first quarter of this...
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures...
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 675,000 100,000 parts Inspecting product 950,000 1,500 batches Processing purchase orders 155,000 700 orders Paying suppliers 225,000 500 invoices Insuring the factory 350,000 40,000 square feet Designing packaging 125,000 2 models     Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead...
Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two...
Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic.        Activity Expected Costs Expected Activity   Handling materials $ 625,000      100,000 parts   Inspecting product 900,000      1,500 batches   Processing purchase orders 105,000      700 orders   Paying suppliers 175,000      500 invoices   Insuring the factory 300,000      40,000 square feet   Designing packaging   75,000    2 models Assume that the following information is available for the company’s two products...
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two...
Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Assume that the following information is available for the company’s two products for the first quarter of 2017. Deluxe...
Fischer Company identified the following activities, costs, and activity drivers: Activity Expected Costs Expected Activity Handling...
Fischer Company identified the following activities, costs, and activity drivers: Activity Expected Costs Expected Activity Handling Parts 425,000 25,00 parts in stock Inspecting Parts 390,000 940 batches Processing Purchase Orders 220,000 440 orders Designing Packaging 230,000 5 models a. Compute a plantwide overhead rate assuming the company assigns overhead based on 70,000 budgeted direct labor hours (Round to two decimals). b. Compute separate rates for each of the four activities using the activity-based costing.
Our organic fish company pays $8,000 in monthly salary to its general manager. The company has...
Our organic fish company pays $8,000 in monthly salary to its general manager. The company has a profit-sharing plan that results in the GM receiving an end-of-year bonus totalling $25,000. Draw the cash-flow dia- gram representing the salary payments if a. the salary is paid at the end of month. b. the salary is paid at the beginning of the month. In both cases, assume that the bonus is always paid on December 31, and use P for present worth....
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 72,000      Test for contamination 128,000      Treat toxic waste 400,000      Operate pollution control equipment 320,000      2. Driver data Solvent X Solvent Y Design hours 1,600           800           Testing hours 2,800           3,600           Pounds of waste 300           7,700           Machine hours 1,600           30,400           3. Other production data Solvent X Solvent Y Nonenvironmental production costs $1,344,000      $1,952,000      Units produced 160,000      160,000      Required: 1. Calculate...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 118,800      Test for contamination 211,200      Treat toxic waste 660,000      Operate pollution control equipment 528,000      2. Driver data Solvent X Solvent Y Design hours 2,600           4,000           Testing hours 4,700           12,900           Pounds of waste 500           21,500           Machine hours 2,600           85,400           3. Other production data Solvent X Solvent Y Nonenvironmental production costs $3,080,000      $6,028,000      Units produced 440,000      440,000      Required: 1. Calculate...
DAB Company has identified the following overhead activities, costs, and activity drivers for the coming year:...
DAB Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity                                Expected Cost          Activity Driver               Activity Capacity Material-handling costs.. £45,000             Number of moves.........        450 Machine costs................ £80,000             Machine hours.............. 20,000 Order costs.................... £15,000             Number of orders.........        750 Receiving costs.............. £30,000             Number of parts........... 50,000 Setup costs.................... £50,000             Number of setups.........        250 Assume that each activity corresponds to a process. DAB’s normal activity is 5,000 direct labor hours. The following two jobs...
In early 2017, you established a company that manufactures and sells cosmetics of a quality that...
In early 2017, you established a company that manufactures and sells cosmetics of a quality that is competitive with products from Japan. After a year of operation, the following data are obtained: Net sales: $ 120,000,000 Cost of production: $ 40,000,000 Marketing, general and administrative costs: $ 20,000,000 Interest fee: $ 5,000,000 Tax fee: $ 15,000,000 Total assets: $ 100,000,000 A. Give an assessment of your financial condition. B. Determine the gross profit and net profit. C. Calculate gross profit...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT