Sal Amato operates a residential landscaping business in an affluent suburb of St. Louis. In an effort to provide quality service, he has concentrated solely on the design and installation of upscale landscaping plans (e.g., trees, shrubs, fountains, and lighting). With his clients continually requesting additional services, Sal recently expanded into lawn maintenance, including fertilization.

The following data relate to his first year’s experience with 55 fertilization clients:

• Each client required nine applications throughout the year and was billed $40.00 per application.

• Two applications involved Type I fertilizer, which contains a special ingredient for weed control. The remaining seven applications involved Type II fertilizer.

• Sal purchased 6,800 pounds of Type I fertilizer at $0.55 per pound and 11,800 pounds of Type II fertilizer at $0.45 per pound. Actual usage amounted to 5,550 pounds of Type I and 8,700 pounds of Type II.

• A new, part-time employee was hired to spread the fertilizer. Sal had to pay premium wages of $13.30 per hour because of a very tight labor market; the employee logged a total of 201 hours at client residences.

• Based on previous knowledge of the operation, articles in trade journals, and conversations with other landscapers, Sal established the following standards:

• Fertilizer purchase price per pound: Type I, $0.68; Type II, $0.46
• Fertilizer usage: 58 pounds per application
• Typical hourly wage rate of landscape personnel: $9.70
• Labor time per application: 40 minutes

• The operation did not go as smoothly as planned, with customer complaints actually much higher than expected.

Required:

1. 1. Compute Sal’s direct-material variances for each type of fertilizer : Type I and Type II

2. 1. Direct material price variance

3. 2. Direct material quantity variance

4. 3. Direct material purchase price variance

5. 4. Direct labor rate variance

6. 5. Direct labor efficency variance

7. 2. Compute the direct-labor variances.

8. 3-a. Compute the actual cost of the client applications. (Note: Exclude any fertilizer in inventory, as remaining fertilizer can be used next year.)

9. 3-b. Calculate the profit or loss of Sal’s new lawn fertilization service.

10. 4. On the basis of the variances that you computed in parts (1) and (2) was the new service a success from an overall cost-control perspective?

11. 5. Should the fertilizer service be continued next year?

1. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the Gross Profit?

$365

$380

$390

$395

2. During January, AA sold 20 units at $30 per unit
Under the Weighted Average Method, how much is the Gross Profit?.

$365

$380

$395

$400

3. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the Cost of Goods Sold?

$205

$235

$260

$290

4. During January, AA sold 20 units at $30 per unit.

Under FIFO, how much is the value of ending inventory?

$205

$235

$260

$290

5. During January, AA sold 20 units at $30 per unit.

How much is the value of ending inventory under the Weighted Average Method?

$195

$220

$275

$300

6. During January, AA sold 20 units at $30 per unit.

Under LIFO, how much is the Cost of Goods Sold?

$205

$235

$260

$290

Static Budget versus Flexible Budget

The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been significantly less than the monthly static budget of 389,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

Feedback

For each level of production, show wages, utilities, and depreciation.

Learning Objective 2, Learning Objective 4.

b. Compare the flexible budget with the actual expenditures for the first three months.

What does this comparison suggest?

pick from the multiple choice

Under the full goodwill method, a control premium is recognised when:

Fredericks Limited acquired the identifiable assets and liabilities of Nicole Limited for $134 000. The items acquired, stated at fair value, are: plant $72 000; inventories $40 000; accounts receivable $18 000; patents $10 000; accounts payable $16 000. The difference on acquisition is:

Xana Limited paid $110 000 for 60% of the shares in Yama Limited. At the date of acquisition Yama Limited had share capital of $100 000 and retained earnings of $36 000 and all of Yama Limited’s assets and liabilities were recorded at fair value, except for land that was recorded at an amount less than the fair value by $20 000. The company tax rate was 30%. The fair value of identifiable net assets acquired by Xana Limited amounted to:

Afternoon I would like to use Apple as my example Go to Yahoo Finance and select a company. Then, share with the class either the company’s gross profit or total operating expenses, as well as the company’s net income. Can you please make sure your answer is clear where I can read it my eyes are really bad thank you

Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation-costing system. The production process includes an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the Standard model is sold after this operation. During the trim operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finish operation where the padding is added. All of the units produced receive the same steps within each operation. The May production run had a total manufacturing cost of $988,290. The units of production and direct-material costs incurred were as follows:

Manufacturing costs applied during the month of May were as follows:

Required:

1. For each product produced by Plasto Corporation during the month of May, determine the (a) unit cost and (b) total cost. Be sure to account for all costs incurred during the month. (Round "Unit costs" to 2 decimal places.)

Problem 23-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,700 direct labor hours. During the year, 130,800 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year. (a) Your answer is correct. If the materials price variance was $5,232 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Link to Text Attempts: 1 of 3 used (b) If the materials quantity variance was $14,136 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal place, e.g. 1.5.) Standard materials quantity per unit

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

A manufacturing company's weekly payroll is $800,000 for a 5-day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period?

The answer is: Increase Wages Expense by $480,000 but I'm unsure how you get the number $480,000?

1). costs are costs that are incurred for the production requirements of a certain period.
T/F
2) budgetary slack can be avoided if lower and mid level managers are requested to support all of their spending requirements with specific operational plans.
T/F
3) for an automotive repair shop the wages of mechanics would be classified as direct labor cost.
T/F
4) when goods are sold their cost are transferred from work-in-process to finish Goods
T/F

Option #1: Acquisition Costs: Land and Building

You are the project manager at Janson Manufacturing. Feedback from the annual employee’s survey revealed that employees were interested in having a fitness center. Thus, last week, you closed the deal and purchased land and a building for $6 million. Other expenses incurred in connection to this purchase included:

An independent appraisal was requested to determine the individual fair value estimates. The land appraised at $5.5 million and the building at $1.9 million.

Spending on the property started right away. Janson installed fences and completed the driveway at a cost of $45,000 and $75,000, respectively.

Required:

1. What is the initial valuation of each asset Janson purchased in these transactions?
2. Suppose Janson, immediately after acquiring the property, decided to tear down the building. The cost of the removal of the building was $350,000 and salvaged materials sold for $8,000. An additional $100,000 was paid to grade the land for building the new fitness center. What is the initial valuation of each asset Janson acquired in this transaction?

Answers must be submitted in an Excel file showing all calculations used to arrive at the final answers. Provide comments on the spreadsheet to explain the rationale for the amounts recorded.

Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in Austin, Texas, had a new data warehouse designed for analyzing customer activity to improve service and marketing that was full of inaccurate and redundant data. The data in the warehouse came from numerous transaction processing systems in Europe, Asia, and other locations around the world. The team that designed the warehouse had assumed that sales groups in all these areas would enter customer names and addresses the same way, regardless of their location. In fact, cultural differences combined with complications from absorbing companies that Emerson had acquired led to multiple ways of entering quote, billing, shipping, and other data. Assess the potential business impact of these data quality problems. What decisions have to be made and steps taken to reach a solution?