Molash Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job L is closest to: (Round your intermediate calculations to 2 decimal places.)

Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories. Data concerning those two jobs follow:

Required:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling prices for Job C and for Job M. (Do not round intermediate calculations.)

Comfort Textiles is engaged in the production and sale of two products-towels and socks. In
the previous period a total of 6,220 units were sold (3,300 units of towels and the remaining for
socks). In the current period, total sales (in units) has increased by 370 units (3,950 units of
socks and the remaining for towels).
Firm’s accounting records provide that following cost and revenue information for the two
periods.

Period-1 (Previous) Period-2 (Current)
Unit Cost Unit Sale Price Unit Cost Unit Sale Price
Towels 210 350 230 380
Socks 140 200 160 220
The sales manager is confused that despite an increase in both, total units sold and the sales
price, gross profit has decreased in the current period. You are required to solve his puzzle by
working on the following lines.
Required:
a) Reflect information as to revenue, cost and gross profit (along with changes therein) for
each year and each product in a simplest form.
b) An analysis of the change in gross profit, indicating various factors causing the profit to
increase or decrease.
c) A proof of the variances calculated in part (b).

"MBACO" has an annual production capacityof 20,000 units. The costs associated with the production and sale of the company's product are given below: LE 15 Per unit variable manufacturing cost 100,000 Total fixed manufacturing cost 5 Per unit variable selling and administrative cost (Include sales commissions 10% of sales) 60,000 Total fixed selling and administrative cost The company presently is selling 15,000 units annually at a selling price of LE 30 each. A special order has been received from a distributor who wants to purchase 5,000 units at a special price. Regular sales would not be affected by this order and the order could be filled without any impact on total fixed costs. Sales commissions per unit on the special order would be reduced by 50%. If the special sales order is accepted the company expects to achieve net profit LE 22500 from the regular sales and special sales order. Required: 1- Prepare a detailed income statement if the special sales order is accepted. 2- What are the necessary conditions to accept or reject this special sales order?

1. Assume that a firm produces natural gas, but emits some air pollution as part of the process. The market functions for natural gas demand and supply, as well as the external damage that the air pollution causes, is shown below, where P is price in $/British Thermal Unit (BTU) and Q is quantities in BTUs :

Demand: P = 1000 – 0.2Q

Marginal Private Cost: P = 100 + 0.4Q

Marginal External Cost: $500

Marginal Social Cost: P = 600 + 0.4Q

This information is provided for you to determine the impact of the pollution. Based on the above information, do the following:

1. Draw and fully label the demand and supply functions provided above for this natural gas market.         [5 marks]
2. Calculate the equilibrium P, Q, and total gross gains from trade (total surplus), assuming no regulation.       [5 marks]
3. c. Solve for the total external cost at the market equilibrium. [3 marks]

d. Solve for the private true or net gains from trade, assuming no regulation.

[3 marks]

e. What is the Pigouvian Tax in this case?                                                        [2 marks]

        f. Explain briefly how it can be applied in this problem to reduce emissions.          

                                                                                                                                      [4 marks]

Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows:

Required:
Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.)



If Sandy Bank sells 1,600 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.)



Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit. (Round your answer to the nearest whole number.)

During a Skype session with Jordan and Taylor, you mention that your current cost model in accounting is break-even analysis. They are not following your explanation, but they say they will swing by with some brownies for a discussion. More brownies! This is paying off, except for those extra pounds.

Selling price to Yumminess at $10 per tin. The cost is $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. Operating expenses are projected to be $80,000 annually.

After looking over the costs for manufacturing overhead and operating expenses, you approximate that 85% of manufacturing overhead and 20% of operating expenses are variable costs.

1. What is the TOTAL fixed cost?

2. What is the TOTAL variable cost?

3. What is the contribution margin per UNIT? ( Do not round)

4. How many units are necessary to reach break - even?

5. Jordan is concerned that they will not be able to sell 200,000 tins of brownies. Given 200,000 tins as their expected sales level, what is the decrease of total sales dollars that they endure before they incur a net loss?

1. Company A is operating at full capacity, sold 45,600 units during the current year. Its income statement is as follows:

The division of costs between variable and fixed is as follows: (round to nearest dollar)

Management is planning to increase the unit sales price by $3 each, no change to the variable cost, but adding additional fixed cost of $25,000.

1. a. Determine the total variable costs and b. the total fixed costs for the current year.
2. a. Compute the break-even sales units and b. dollar sales for the current year. (round to nearest unit/dollar)
3. a. Compute the break-even sales units and b. dollar sales under the proposed program for the following year. (round to nearest unit/dollar)
4. How many units would have to be sold, under the proposed program, to generate income from operations of $965,500 (round to nearest unit).

) A firm wants a buyer adjust their purchasing amount and frequency by changing the price it charges so that they purchase the target times per year. For example, if the firm purchases 10 times a year a firm might want it to purchase 5 times yearly instead. The firm recognizes that an incentive will have to be offered to do this and has set the incentive as the amount the purchaser would save in total (based on total material cost as used in inventory analysis) from the current cost to the purchaser. Data on the customer is given below as well as the target savings identified the firm thinks is required to get the purchaser to change their buying pattern.

NOTE: The customer may not be applying EOQ to its current ordering quantity and frequency.

a. What is the total annual cost to the customer of the current ordering policy?

b. What is the highest price the seller can offer the customer so the customer orders 4 times yearly and meets the targeted savings?

With a certain medical insurance​ policy, the customer must first pay an annual ​$100 ​deductible, and then the policy covers 60​% of the cost of dental work. The first dental insurance claims for a specific year submitted by a person are for two procedures. The first procedure cost ​$700​, and the second procedure cost ​$990. How​ much, in​ total, will he need to pay for these​ procedures?