Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $5.50 per unit. Enough capacity exists in the company’s plant to produce 20,000 units of the toy each month. Variable costs to manufacture and sell one unit would be $2.75, and fixed costs associated with the toy would total $70,000 per month.

The company’s Marketing Department predicts that demand for the new toy will exceed the 20,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of $5,000 per month. Variable costs in the rented facility would total $3.00 per unit, due to somewhat less efficient operations than in the main plant.

Required:

1. Compute the monthly break-even point for the new toy in units and in total dollar sales. Show all computations in good form.

2. How many units must be sold each month to make a monthly profit of $3,000?

3. If the sales manager receives a bonus of 5 cents for each unit sold in excess of the break-even point, how many units must be sold each month to earn a return of 4.9% on the monthly investment in fixed costs?

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $55,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.)

a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?

b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction?

Each student should choose an organization with which she/he is familiar, such as the place of employment, business patronized, or other situation and describe how that organization either does or does not apply the course concepts on a day-to-day basis. The following course concepts should be discussed:

• The Balance Scorecard Critical success factors.
• Identify and discuss the fixed and variable cost.
• Calculate the Contribution Margin Income Statement
• Determine and discuss the most effective costing method for your organization.
• Using the IRR and NPV method calculate and determine if the capital budget project is viable project cost $950,000, project life 7 years and cost of capital 12% and annual cash flows of $210,000.
• Provide a recommendation for the organization

What would be some pros and cons of using acutal versus capacity cost driver rates and vice versus. this is the question i am ultimately answering, "Which cost driver rates should be used: actual or capacity based? Why?"

Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $52 per unit.

Required:

1. Compute the company’s break-even point in unit sales.

2. Assume the company uses variable costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

3. Assume the company uses absorption costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

________________________________________________________________________

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $250,000 fixed each year.

The company’s $37 unit product cost is computed as follows:

Production and cost data for the first two years of operations are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Explain the steps in the posting process. Also, discuss what a Trial balance is and why it is an important step in the accounting cycle. Does a trial balance that is in balance guarantee that all transactions posted are error-free?

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:

*For the month's production.

The following additional information is available for March’s production:

Required:

Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements.

1. What is the standard cost of a single backpack?

2. What was the actual cost per backpack produced during March?

3. How many yards of material are required at standard per backpack?

4. What was the materials price variance for March if there were no beginning or ending inventories of materials?

5. What is the standard direct labor rate per hour?

6. What was the labor rate variance for March? The labor efficiency variance?

7. What was the variable overhead rate variance for March? The variable overhead efficiency variance?

8. Prepare a standard cost card for one backpack.

1.) On January 1, 2019, Fap Company had 390,000 shares of its $1 par value common stock outstanding. On March 1, Fap sold an additional 748,000 shares on the open market at $10 per share. Fap issued a 20% stock dividend on May 1. On August 1, Fap purchased 414,000 shares and immediately retired the stock. On November 1, 595,000 shares were sold for $15 per share. What is the weighted-average number of shares outstanding for 2019?

(Rounded to the nearest dollar.)

2.) On July 1, 2019, Montana Company purchased $3,820,000 of Idaho Company’s 8% bonds, due on July 1, 2026. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,300,000 to yield 10%. Determine the amount of interest revenue Montana should report on its income statement for the year ended December 31, 2019.

(Round to nearest whole dollar)

Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $2.5 million. The projects are expected to produce the following net cash inflows: Year Project A Project B 1 750,000 2,000,000 2 1,250,000 1,250,000 3 2,000,000 750,000 a. What is each project's IRR? Project A = IRR(C11: b. What is each project's NPV if the cost of capital is 10%?

Attention Chegg Tutor: There is a similar answer online in Chegg, but the excel formula doesn't make sense. So please do not copy and paste the answer to answer this question. I am really trying to understand how the answer came about. please show all work.

1) Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.   

11-40 Make or buy, unknown level of volume. (A. Atkinson, adapted) Denver Engineering manufac- tures small engines that it sells to manufacturers who install them in products such as lawn mowers. The company currently manufactures all the parts used in these engines but is considering a proposal from an external supplier who wishes to supply the starter assemblies used in these engines.

The starter assemblies are currently manufactured in Division 3 of Denver Engineering. The costs relat- ing to the starter assemblies for the past 12 months were as follows:

Direct materials                                                  $550,000
Variable direct manufacturing labor $300,000

Manufacturing overhead $800,000
Total $1,650,000

Over the past year, Division 3 manufactured 150,000 starter assemblies. The average cost for each starter assembly is $10 ($1,500,000 / 150,000).

Further analysis of manufacturing overhead revealed the following information. Of the total manufac- turing overhead, only 25% is considered variable. Of the fixed portion, $300,000 is an allocation of general overhead that will remain unchanged for the company as a whole if production of the starter assemblies is discontinued. A further $200,000 of the fixed overhead is avoidable if production of the starter assemblies is discontinued. The balance of the current fixed overhead, $100,000, is the division manager’s salary. If Denver Engineering discontinues production of the starter assemblies, the manager of Division 3 will be transferred to Division 2 at the same salary. This move will allow the company to save the $80,000 salary that would otherwise be paid to attract an outsider to this position.

1. Tutwiler Electronics, a reliable supplier, has offered to supply starter-assembly units at $8 per unit. Because this price is less than the current average cost of $10 per unit, the vice president of manufacturing is eager to accept this offer. On the basis of financial considerations alone, should Denver Engineering accept the outside offer? Show your calculations. (Hint: Production output in the coming year may be different from production output in the past year.)
2. How, if at all, would your response to requirement 1 change if the company could use the vacated plant space for storage and, in so doing, avoid $100,000 of outside storage charges currently incurred? Why is this information relevant or irrelevant?

Discuss scenario where you apply the accounting codes of conduct and your own personal and professional code of ethics. I

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

During November, the following activity was recorded related to the production of Fludex:

1. Materials purchased, 10,500 ounces at a cost of $216,825.

2. There was no beginning inventory of materials; however, at the end of the month, 2,600 ounces of material remained in ending inventory.

3. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 180 hours at an average pay rate of $14.00 per hour.

4. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $7,000.

5. During November, the company produced 3,700 units of Fludex.

Required:

1. For direct materials:

a. Compute the price and quantity variances.

b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?

2. For direct labor:

a. Compute the rate and efficiency variances.

b. In the past, the 20 technicians employed in the production of Fludex consisted of 8 senior technicians and 12 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued?

3. Compute the variable overhead rate and efficiency variances.

1) For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Materials quantity variance=? and U or F

Materials price Variance=? and U or F

2) For direct materials, the materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?

yes or no

3) For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Labor efficiency variance=? and U or F

Labor rate variance= ? and U or F

4) In the past, the 20 technicians employed in the production of Fludex consisted of 8 senior technicians and 12 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued?

yes or no

5) Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Variable overhead rate variance=? and F or U

Variable overhead effiency variance=? and F or U