Grandma's Attic Company produces soft pillows made from goose
down. The company uses a standard cost system and has set the
following standards for materials and labour for each pillow:
Feathers from 5 large white geese (5 geese @ R5) R25
Fabric to make pillowcases (3 metres @ R2) R6
Direct labour (5 hours @ R8) R40
Total prime cost R71
During the month, the company produced 1000 goose down pillows.
Actual geese purchased were 5100, at R4 per goose. Actual fabric
purchased was 2900 metres at R2.10 per metre. There was no
beginning or ending inventory of geese or fabric. Actual direct
labour was 5200 hours at R7.75 per hour.
Required
1. Determine the total materials price variance and whether it is
favourable or unfavourable. (5)
2. Determine the total materials usage variance and whether it is
favourable or unfavourable. (5)
3. Determine the labour rate variance and whether it is favourable
or unfavourable. (3)
4. Determine the labour efficiency variance and whether it is
favourable or unfavourable.
In: Accounting
Williams Ltd manufactures and sells a single product. The
selling price is R18. The following information relates to its
yearly production and cost data. (Assume that there is no change to
the stock level of the company.)
Unit Total
Year Volume Cost R
1 300 000 4 000 000
2 150 000 2 800 000
3 420 000 6 600 000
4 280 000 3 900 000
5 230 000 3 200 000
6 120 000 2 100 000
Required:
1. Based on the above cost and volume data, use the high–low method
to identify variable cost per unit and annual fixed costs for the
company.
5 marks
2. On the basis of your answers in part (1) above, calculate the
breakeven point of the company in both units and sales revenue.
In: Accounting
Comfort Corporation manufactures and sells various types of chairs. The below are the costing details of a chair model, namely, Curver:
The selling price for the chairs was $150 each.
In: Accounting
Select a publicly-traded company and access the company’s most recent annual report (select the “Investors” menu item). Locate the notes to the financial statements and identify the information topics disclosed in these footnotes and explain the reasons for disclosure. Please no answer that has already been listed Thanks and cite if needed, please?
In: Accounting
Select a publicly-traded company (the home depot inc.) and access the company’s most recent annual report (select the “Investors” menu item). Locate the notes to the financial statements and identify the information topics disclosed in these footnotes and explain the reasons for disclosure. Please no answer that has already been listed Thanks and cite if needed, please?
In: Accounting
Companies where IT is an important part of their product offerings presumably also have a sales force that is well versed in technology. Why is it then necessary to take the CIO along on customer visits? Discuss
In: Accounting
1. How companies account for defined benefit, defined contribution, and postretirement benefit plans?
In: Accounting
Question 1
Norway (Pty) Ltd is a divisionalised company, where the divisional
managers’ remuneration packages are linked to the return on
investment of their divisions. Return on investment is based on the
net book value of assets employed in the division at the beginning
of the financial year. On average, divisional managers remain in
their posts for a three-year period.
The manager of the Scandinavian division is considering two
mutually exclusive alternative proposals for investing in new
machinery. These proposals both involve an initial outlay of R250
000, but will yield different levels of savings over the life of
the machinery, which is estimated at five years, after which they
will have no residual value. Norway (Pty) Ltd ‘s depreciation, is
calculated on a straight-line basis.
The savings will give rise to increased cash flows as
follows:
Year
Machine
A
Cash flows
B
Cash flows
1
80 000
100 000
2
80 000
90 000
3
80 000
80 000
4
100 000
60 000
5
100 000
40 000
Required:
1. Appraise each project, using
a) return on investment, as described above
b) net present value, using the company’s cost of capital of
6%
15 marks
Based on your results from (1), explain which machine the
divisional manager is likely to choose and discuss the potential
conflict between performance measurement and investment
appraisal.
In: Accounting
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 44% of the good units.
Data for December 2017 are as follows:
WIP, beginning inventory 12/1/2017 22,700 units
Direct materials (100% complete)
Conversion costs (75% complete)
Started during December 77,000 units
Completed and transferred out 12/31/2017 72,900 units
WIP, ending inventory 12/31/2017 18,000 units
Direct materials (100% complete)
Conversion costs (70% complete)
Costs for December:
WIP, beginning Inventory:
Direct materials $152,000
Conversion costs 77,200
Direct materials added 232,400
Conversion costs added 296,000
What is the total cost per equivalent unit using the weighted−average method of process costing? (Round any cost per unit calculations to the nearest cent.)
In: Accounting
1. Please describe the difference between an accounts receivable and a notes receivable.
2. There are times when businesses cannot collect the money that is owed to them by their customers. When this happens, businesses incur an expense. There are two methods for recording uncollectible receivables. They are the allowance method and the direct write off method. Please explain the difference between these two methods.
*****Please post your answer as a typing or text, not as a photo!!!
In: Accounting
Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 43,900 Units in ending work in process 8,500 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $80,500 Direct labor $68,700 Overhead $103,800
In: Accounting
Speedy Pty Ltd operates a suburban delivery business. It is considering the replacement of a 2-ton van with a 3-ton van. Detail of the respective vehicles are as follows:
2-ton truck | 3-ton truck | ||
Remaining life | 3 years | estimated life | 4 year |
salvage value now | $4,000 | salvage value in 4 years | $2,000 |
salvage value in 3 years | $0 | Annual depreciation for tax purposes | $6,000 |
written down value now | $7,600 | Cost | $24,000 |
Annual Depreciation for tax purposes | $2,200 | ||
Annual net cash flows before tax | $14,000 | annual net cash flow before tax | $22,000 |
The after-tax cost of capital 10%pa and the tax rate is 30%. Management is considering the following alternatives: replace now or Replace in three years which alternative should be accepted? Explain your decision.
In: Accounting
1. Please describe the difference between an accounts receivable and a notes receivable.
2. There are times when businesses cannot collect the money that is owed to them by their customers. When this happens, businesses incur an expense. There are two methods for recording uncollectible receivables. They are the allowance method and the direct write off method. Please explain the difference between these two methods.
*****Please post your answer as a typing or text, not as a photo!!!
In: Accounting
Topic = Strategy
defination (100 words )
explain (150 words )
and give two examples ( eg. how it works , steps involved use and limitations and specific products organisations or issues and etc ) around 150 words
plagiarism free
In: Accounting
. The following information pertains to Feyenoord, Inc.:
Compute basic and diluted earnings per share for the year 2019.
In: Accounting