Questions
Cost Terminology; Contribution Format Income Statement
Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs
Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
In: Accounting
Is cost accounting necessary to properly manage a company?
Is cost accounting necessary to properly manage a company?
In: Accounting
An equipment was purchased by a Company at the cost of $875,000. It was depreciated for...
An equipment was purchased by a Company at the cost of $875,000. It was depreciated for five years on a straight-line basis to zero-salvage value. The market value of this equipment is $85,000. Tax rate applicable to this Company is 40%. Calculate the After-tax Salvage value. a. 585.000 b. 5121,000 c. 590,000 d. 551,000
In: Finance
Describe the “number of businesses” cost of the diversification strategy.
In: Economics
Discuss cost classification based on variability and controllability..
Discuss cost classification based on variability and controllability..
In: Accounting
Chapter 1 Managerial Accounting and Cost Concepts
1–12 What is the contribution margin?
1–13 Define the following terms: differential cost, sunk cost, and opportunity cost.
1–14 Only variable costs can be differential costs. Do you agree? Explain.
In: Accounting
Chapter 1 Managerial Accounting and Cost Concepts
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.
Required:
For each cost incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by placing an X in the appropriate column.
In: Accounting
Discuss the terms Route Selection and Cost Factor
Discuss the terms Route Selection and Cost Factor
In: Other