1

Too-Jay Enterprises recently experienced a fire, forcing the

company to use incomplete information to analyze
operations. Consider the following data and assume that all https://allzinone.blogspot.com/2016_12_12_archive.html
materials purchased during the period were used in
production:

Direct materials:
Standard price per pound: $10
Actual price per pound: $9
Price variance: $10,800F $10,800
Total of direct-material variances: $1,000F $1,000

Direct labor:
Actual hours worked: 30,000 30,000
Actual rate per hour: $17 $17
Efficiency variance: $16,000F $16,000
Total of direct-labor variances: $14,000U $14,000
Halo completed 10,000 units. 10,000

Determine the actual materials used.

(1) actual materials used We know, Price Variances = AQ(AP-

SP) or, Tk. 20,000F = AQ(8-9) or -20,000 = AQ(-1) or AQ = ($1)
20,000 So, actual materials used 20,000 pounds

Price Variances = AQ(AP-SP) $10,800

Determine the direct-material quantity variance.

We know, Price variance + Material variance(MV) = Total ($10,800)
direct-material variance(TV)
or, -20,000 + MV = -2,000 So, MV = 18,000 So, direct- $1,000
material quantity variance tk. 18,000 Unfavorable
($9,800)

Determine the direct-labor rate variance.

Labor Rate Variance (LV) + Efficiency variance = Total direct- $16,000
labor variance
or, LV + (-28,000) = 12,000 so, LV = 40,000 so, direct-labor $14,000
rate variance Tk. 40,000 Unfavorable
$30,000

Determine the standard labor rate per hour.

Labor rate variance = AH(AR-SR)
or, 40,000 = 40,000 (15-SR) or, 15-SR = 1 So, SR = 15-1=14 $16
So, standard labor rate per hour Tk. 14
Determine the standard labor time per finished unit. (Round
your answers to 1 decimal place.)
Efficiency variances = SR(AH-SH) $16,000

or, -28,000 = 14(40,000-SH) or, 40,000-SH = -2,000 So, SH =

42,000 Units produced 12,000 units So, standard labor time $30,000
per finished unit = (42,000/12,000) Tk. = 3.5 Tk.

$1,000
$31,000
3.10

D. $10,400F $6,480U
2. D https://quizlet.com/11377386/accounting-exam-review-flash-car
Airon Company recently completed 12,800
labor hours 26,000
Cost the firm $410,800
hours of labor time 2
per hour $16.20

Direct-labour rate variance = AH(AR - SR)

AH = Actual Hours Used
AR = Actual Rate per hour
SR = Standard Rate per hour

AH = 32,000 26,000
AR = $ 480,000 / 32,000 labour hours $16
AR = 15.40 $16.20
SR = 15.00 10,400
=32,000(15.40 - 15)
=12,800 (favorable)
_________________________________________
Direct-labour efficiency variance = SR(AH - SH)
SR = Standard Rate per hour
AH = Actual Hours used
SH = Standard Hours Allowed

SR = 15.40 $16.20
AH = 32,000 26,000
SH = 10,600 x 3 (hours per unit) 25600
SH = 31,800 6480

=15.40(32,000 - 31,800)
=3,080 (unfavorable)
_________________________________________
Rate: $12,800 - Favorable
Efficiency: $3,080 - Unfavorable

3 https://www.allbusiness.com/barrons_dictionary/dictionary-stan
2 pounds of material input for every 1 pounds of styrofoam
sheets manufactured. During March, the company
produced 1,780 pounds of good sheets.

March 1780
Pound 2.00
1782

4 None of the answers is correct.

5. A A 9% increase in selling price.

Which of the following would produce the largest increase https://www.coursehero.com/file/6397315/QUIZ-9-ANSWERS-/
in the contribution margin per unit?

7 $230,000.00

Sarafine, Inc. sells a single product for $20. Variable costs

are $9 per unit and fixed costs total $148,500 at a volume
level of 5,500 units. Assuming that fixed costs
do not change, Sarafine’s break-even sales would be:

Fixed cost $27

Variable costs $9

Actual Cost
8 866,400
The following data relate to product no. 33 of Volusia
Corporation:

Direct labor standard: 7 hours at $15 per hour

Direct labor used in production: 57,000 hours at a cost of
$866,400
Manufacturing activity: 8,100 units completed

The direct-labor efficiency variance is:

The difference between the standard labor hours allowed

and the actual labor hours used multiplied by the standard
labor rate

Hours
Direct labor standard: 7 hours at 7
Direct labor used in production: 57,000 hours at a cost of 57,000
$866,400
Manufacturing activity: 8,100 units completed 8,100
$15.20

9
The PowerClean Company manufactures an engine for
carpet cleaners called the "Snooper." Budgeted cost and https://www.coursehero.com/file/p1agqd2/The-Bruggs-Strutton-
revenue data for the "Snooper" are given below, based on
sales of 41,000 units.

Sales revenue $
Less: Cost of goods sold
Gross margin $
Less: Operating expenses
Income $

Calculate the break-even point in units and sales dollars.

CM per unit: ($1,600,000-$800,000-$40,000)/40,000 units

=$19/unit
BE Units: (320,000+60,000)/19= 20,000 units
CMR: (1,600,000-840,000)/1,600,000=47.5%
BE point in sales dollars: (320,000+60,000)/.475
=$800,000

Calculate the safety margin (in dollars).

VC/unit: ($800,000+$40,000)/40,000 units - .54 = 21-.54 =
$20.46/ unit

Profit from order: (25-20.46)*6000

=$27,240

PowerClean received an order for 9,000 units at a price of

$20. There will be no increase in fixed costs, but variable
costs will be reduced by $0.40 per unit because of cheaper
packaging. Determine the projected increase or decrease in
profit from the order, assuming there are no opportunity
costs.

2500*(29-21)=$20000 Æ Accept the other order

10 https://study.com/academy/answer/a-variable-cost-of-30-fixed-
an amount that cannot be derived based on the information
presented.

11
Cost standards for one unit of product no. C77:
Direct material 3 pounds at $2.80 per pound
Direct labor 5 hours at $7.20 per hour
Actual results:
Units produced
Direct material purchased 26,300 pounds at $3.00
Direct material used 23,400 pounds at $3.00
Direct labor 40,400 hours at $7.00
Assume that the company computes variances at the earliest point in time.

The direct-labor efficiency variance is:

Direct-labor efficiency variance = (Standard hours - Actual Hours) * Standard Rate

Direct-labor efficiency variance = ((5,800 * 7) - 41,200) * $7.40
Direct-labor efficiency variance = (40,600 - 41,200) * $7.40
Direct-labor efficiency variance = 4,440 Unfavorable, since actual is greater than standard

12
During June, Fraser Company’s material purchases amounted to 6,400 pounds at a price of $7.00 per pound. Actual costs incur
Direct labor: 68,949
Direct material: 18,550

The standards for one unit of Fraser Company’s product are a

Direct labor: Direct material:
Quantity, 3.0 hours per unit Quantity, 1.5 pounds per unit
Rate, $16.1 per hour Price, $6.50 per pound

13

Bargain Town reported sales revenues of $1,081,500, a total

contribution margin of $346,500, and fixed costs of
$240,000. If sales volume amounted to 10,500 units, the
company's variable cost per unit must have been:

$346,500 $1,081,500
$240,000 10,500
$106,500 $1,188,000

14

15 https://quizlet.com/253406481/ch-8-flash-cards/
Each unit "contributes" $3 toward covering the fixed costs of $800 and Once the break-even point is reached, the company wil

16

Direct materials: 3.0 pounds at $4.40

Direct labor: 1.8 hours at $6 per hour
Additional information was extracted from the accounting
records:
Actual production: 28,000 completed units
Direct materials purchased: 91,000 pounds at $4.20, or
$382,200
Direct materials consumed: 85,000 pounds

Actual labor incurred: 49,400 hours at $5.6, or $276,640 49400

Direct-labor rate variance: $46,760 favorable 46760

Direct-labor efficiency variance: $21,000 unfavorable 21000
Assume that the company computes variances at the
earliest point in time.

17

Lamar Corporation's purchasing manager obtained a special

price on an aluminum alloy from a new supplier, resulting in
a direct-material price variance of $10,200F. The alloy
produced more waste than normal, as evidenced by a
direct-material quantity variance of $2,000U, and was also
difficult to use. This slowed worker efficiency, generating a
$2,500U labor efficiency variance.
To help remedy the situation, the production manager used
senior line employees, which gave rise to a $900U labor rate
variance. If overall product quality did not suffer, what
variance amount is best used in judging the appropriateness
of the purchasing manager's decision to acquire
substandard material?

$7,700F.
18

James at the Mill Barn Woods produces handcrafted frames.

A standard-size 11 × 14 inch frame requires 6 board feet of
rustic barn wood in the finished product. In addition, 2
board foot of scrap lumber is normally left from the
production of one frame. James pays a demolition company
$1.30 per board foot, plus $1.00 in transportation charges
per board foot.
Required:
Compute the standard direct-material cost of a frame. (Do
not round intermediate calculations. Round your final
answer to 2 decimal places.)

4
$5.20
$4.00
$9.20

19

Cost standards for one unit of product no. C77:

Direct material 3 pounds at $2.70 per pound
Direct labor 7 hours at $7.40 per hour
Actual results:
Units produced 5,800
Direct material purchased 27,100 pounds at $2.90
Direct material used 17,100 pounds at $2.90
Direct labor 41,200 hours at $7.20

Assume that the company computes variances at the

earliest point in time.
The direct-material quantity variance is:

20 $8,240F.
Cost standards for one unit of product no. C77:
Direct material 3 pounds at $2.40 per pound
Direct labor 7 hours at $7.20 per hour
Actual results:
Units produced 5,800 units
Direct material purchased 26,700 pounds at $2.60
Direct material used 17,100 pounds at $2.60
Direct labor 41,200 hours at $7.00

Assume that the company computes variances at the

earliest point in time.

The direct-labor rate variance is:

ogspot.com/2016_12_12_archive.html

$9 $10
$8 $9
$20,000 11900
$2,000 4000

40,000 50000
$15 16
$28,000 45000
$12,000 5000
12,000 10000

($1) ($1)

$20,000 $11,900

($20,000) ($11,900)

$2,000 $4,000

($18,000) ($7,900) Unfavorable

$28,000 $45,000

$12,000 $5,000

$40,000 $50,000 Unfavorable

$40,000 $50,000

$14 $15
 $28,000 $45,000

$40,000 $50,000

$2,000 $4,000
$42,000 $54,000
3.50 5.40 hours

/11377386/accounting-exam-review-flash-cards/
unit 10,600 12,300
32,000 25,000
$480,000 $420,000
3 2
$15.40 $17.20

32,000 25,000
$15 $17
$15.40 $17.20
Favorable 12,800 Favorable 10,000

16,880

$15.40 $17.20
32,000 25,000
31800 24600
Unfavorable 3080 Unfavorable 6880

6880
iness.com/barrons_dictionary/dictionary-standard-quantity-allowed-4946500-1.html

2000
5
10000

rs is correct.

ehero.com/file/6397315/QUIZ-9-ANSWERS-/

https://www.accountingcoach.com/break-even-point/explanation/3

Volume Level SP
(units)

$148,500 5,500 $20 $110,000

$49,500 5,500 ($148,500)
$198,000 $110,000 ($38,500)
$110,000
$308,000

Standard Cost of Actual Hours

$855,000 11,400
 per hour Cost
$15 $105 $850,500

$15.00 $866,400

ehero.com/file/p1agqd2/The-Bruggs-Strutton-Company-manufactures-an-engine-for-carpet-cleaners-called/

41000 40000 34000 Snooper

1,230,000 $ 1,600,000 $1,700,000
996,000 $ 1,120,000 1,232,000
234,000 $ 480,000 468,000
102,000 $ 100,000 130,000
132,000 $ 380,000 338,000

$707,000 $ 800,000 $771,000 variable costs

$289,000 $320,000 $461,000 fixed costs
$31,000 $ 40,000 $45,000 variable costs
$71,000 $ 60,000 $85,000 fixed costs

12 19 26

$ 30,000.00 20000 21000

40.0% 47.5% 52.0%
 $ 900,000.00 800000 1050000

20 25 35 price @
0.40 $ 0.54 0.5 reduced variable

17.60 20.46 23.50

21600 27240 80500

9000 6000 7000 Orders

$330,000 $650,000 Safety Margin

21600 27240 80500

academy/answer/a-variable-cost-of-30-fixed-costs-amount-to-5-per-unit-when-anticipated-sales-targets-are-met-if-the-company-sells-o

Cost standards for one unit of the product no. C77

8.4 Direct material 3 pounds at $2.70 per
36 5 $7.20 Direct labor 7 hours at $7.40 per hour
Actual results
7,900 Units produced 5,800 units
78,900 Direct material purchased 27,100 poun
70,200 Direct material used 17,100 pounds at
282,800 40,400 hours Direct labor 41,200 hours at $7.20

) * Standard Rate
($6,480.00) UNFAVORABLE

l is greater than standard

a price of $7.00 per pound. Actual costs incurred in the production of 1,000 units were as follows:
 ($16.3 per hour)
($7.00 per pound)
4266.666666667
68,949 ($16.3 per hour)
68,949 $16.30
4230.00

$113.14

/253406481/ch-8-flash-cards/
break-even point is reached, the company will increase income at the rate of $3 per unit.

49400 382000

46760 18200
96160 363800
75160
 6 board feet for standard
2 One frane
$1.30 per board foot
$1.00 in transportation charges per board foot.

8.1 $2.70
51.8 $7.40 Actual Quatity*SP
$10.10
units
78,590 $2.90
49,590 $2.90
296,640 $7.20

https://www.accountingformanagement.org/direct-labor-rate-variance-calculator/

$ 7.2
50.4

$ 69,420
44,460
288,400
6
9.Hermosa Enterprises recently experienced a fire, forcing the company to use incomplete
8. None of the answers is correct.
57000
$15
$15.00
-11,400

Favorable
 $11
55%
$148,500
$81,675
$230,175
COGS
COGS
Operating expenses
Operating expenses
targets-are-met-if-the-company-sells-one-unit-in-excess-of-its-break-even-volume-profit-will-be-a-15-b-20-c.html

t of the product no. C77

$8.10
51.8 7 $7.40

5,800
$78,590
49,590
296,640 41,200 hours

($4,440.00) UNFAVORABLE
v
Direct materials purchased PRICE VARIAN

Standard $3.20
Actual $2.90
$0.30
Direct mat 30,000
$9,000.00
1780 4530
2.00 4
1 3
0.5 0.75
3560 6040
 6,800
6
40800
 16000
6
90000
6000
U 9000
F 4200
$ 0.70
0.1
$ 0.80
 20 22 Single product
9 10 Variable Cost
148500 114000 Fixed cost
 5500 5000 units
13500 9500
270000 209000
 300 7.5 2250 U
41300
8200
5 hours
https://www.coursehero.com/
 23,000 Actual production: 23,000 completed units
1 Direct materials: 1.0 pounds at $3.20
3.2
73600

Actual production: 23,000 completed units

Direct labor: 1.8 hours at $8 per hour
23000
1.8
8
331200
Actual labo 40,400
$7.60
307040

Direct mat 27000

3.2
86400
erials purchased PRICE VARIANCE

Favourable

To help remedy the situation, t

 $ 10,200.00
direct-mate$ 2,000.00
labor effic $ 2,500.00
$ 900.00
$ 4,800.00
 18000
5
87,000
3000 F
$8,700 U
$2,100 F
$ 0.70
0.1
$ 0.80
20
1081500
346500
10500
ps://www.coursehero.com/file/11259861/Accounting-Chapter-910-Quiz-A-B/
help remedy the situation, the production manager used senior line employees, which gave rise to a $1,500U labor rate variance. If overall p
F 10900 F
U $ 2,000.00 U
U $ 2,500.00 U
U $ 1,500.00 U
F $ 4,900.00 F
labor rate variance. If overall product quality did not suffer, what variance amount is best used in judging the appropriateness of the purch
he appropriateness of the purchasing manager's decision to acquire substandard material?
1 65% 1 50%
1 1
1
1 0
1 0
1 1 13,065
1 2010.00
1 1
1 1
0
0
1 462

1
1
1 1
1
1
1
1
$6.50
 1
180 95
85

2 https://www.coursehero.com/file/p1and3b/Allocated-Fairline-adminis

The Boot Department at the Omaha Department Store is being considered for closure. The
following information relates to boot activity:
Sales revenue $350,000
Variable costs:
Cost of goods sold 280,000
Sales commissions 30,000
Fixed operating costs 90,000
70%
If 70% of the fixed operating costs are avoidable, should the Boot Department be closed?
A. Yes, Omaha would be better off by $23

Feedback A: Correct! $350,000 - $280,000 - $30,000 – ($90,000 x 70%) = $(23,000).

-23000

3 https://www.coursehero.com/file/6911662/Soluiton-14/

Cheyenne Enterprises manufactures

Nuts and Bolts from a joint process
(cost = $80,000). Five thousand
pounds of Nuts can be sold at split-
off for $20 per pound; ten thousand
pounds of Bolts can be sold at split-
off for $15 per pound. For product
costing purposes Cheyenne allocates
Cheyenne Enterprises manufactures Nuts and Bolts joint costs using the relative sales
from a joint process (cost = $95,000). Five thousand value method.
pounds of Nuts can be sold at split-off for $20 per
pound; ten thousand pounds of Bolts can be sold at
split-off for $15 per pound. For product costing
purposes Cheyenne allocates joint costs using the
relative sales value method.
Nuts $32,000
Nuts: $20 x 5000 = $100,000
$100,000/250,000 = 0.4 => 0.4 x 80,000 = 32000
Bolts: $15 x 10000 = $150,000
$150,000/250,000 = 0.6=> 0.6 x 80,000 = 48000
 20
5000
$80,000

5 https://quizlet.com/134839167/chapter-14-flash-cards/
Torrey Pines is studying whether to outsource its
Human Resources (H/R) activities.
Salaried professionals who earn $390,000 would be
terminated; in contrast, administrative
assistants who earn $120,000 would be transferred
elsewhere in the organization.
Miscellaneous departmental overhead (e.g., supplies,
copy charges, overnight delivery) is

expected to decrease by $40,000, and $25,000 of

corporate overhead, previously allocated
to Human Resources, would be picked up by other
departments. If Torrey Pines can secure
needed H/R services locally for $410,000, how much
would the company benefit by
outsourcing
A. $10,000
.
B. $20,000
.
C. $130,000.
D. $155,000.
E. Nothing, as it would be cheaper to keep the
department open.
Solution:
There are a bunch of numbers here. For arriving at the
correct solution, one has to
identify which of the numbers will impact the savings
of Torrey Pines. The first figure of
$390,000 will impact savings. The second figure will
not impact savings since the administrative
assistants will go somewhere else in the organization.
The third figure of $30,000 will impact
savings but the $25,000 of corporate overhead will not
be saved. Adding up the figures which
do impact savings we arrive at the figure of $390,000 +
$40,000 = $430,000 https://www.coursehero.com/file/p5jg8n3j/Torrey-Pines-is-studying-w

6 https://www.coursehero.com/file/p4vcnu/Highlander-Company-plans-

Higgins Company plans to incur $580,000 of salaries

expense if a capital project is implemented. Assuming
a 40% tax rate, the salaries should be reflected in the
analysis by a:

350000
30%
105000
245000

7 https://www.coursehero.com/file/7923306/PROBLEMS-RELEVANT-COS
8 https://quizlet.com/134996429/chapter-16-flash-cards/
 9 https://www.coursehero.com/file/pjvsq3/Cost-of-goods-sold-includes-

10
 11

Deltones, a manufacturer of computer peripherals, has

excess capacity. The company's Alabama plant has the
following per-unit cost structure for item no. 89:

Variable manufacturing $ 50
Fixed manufacturing 30
Variable selling 8
Fixed selling 11
Traceable fixed administrative 4
Allocated administrative 2

The traceable fixed administrative cost was incurred at

the Alabama plant; in contrast, the allocated
administrative cost represents a "fair share" of
Deltones' corporate overhead. Alabama has been
presented with a special order of 5,700 units of item
no. 89 on which no selling cost will be incurred. The
proper relevant cost in deciding whether to accept this
special order would be:

12 https://quizlet.com/134839167/chapter-14-flash-cards/
Homer Enterprises, which produces various goods, has
limited processing hours at its manufacturing plant.
The following data apply to product no. 607:

Sales price per unit: $12.20

Variable cost per unit: $7.10
Process time per unit: 6.00 hours

Management is now studying whether to devote the

firm's limited hours to product no. 607 or to other
products. What key dollar amount should management
focus on when determining no. 607's "value" to the
firm and deciding the best course of action to follow? 5.1

13 https://www.coursehero.com/file/p2kcqi9/When-income-taxes-are-co
Hampton Company plans to incur $230,000 of additional cash operating expenses and produce $410,000 of additional sales re

14

James Company has an asset that cost $5,000 and

currently has accumulated depreciation of $2,000.
Suppose the firm sold the asset for $2,500 and is
subject to a 30% income tax rate

$2,650.00

$5,000 Asset cost

$2,000 Accumulated depreciation
$2,500 Sold the asset
30% Income tax rate
$500
$3,000
$750
$2,250
$2,750

15 https://www.coursehero.com/file/p5sp0o/Use-the-following-to-answe
 Omar Industries manufactures two
products: Regular and Super. The
results of operations for 20x1 follow.

Fixed manufacturing costs included in

cost of goods sold amount to $3 per
unit for Regular and $30 per unit for
Super. Variable selling expenses are
$4 per unit for Regular and $30 per
unit for Super; remaining selling
HiTech wants to drop the Regular product line. amounts are fixed.
If the line is dropped, company-wide
fixed manufacturing costs would fall by 10% because Omar Industries wants to drop the
there is no alternative use of the Regular product line. If the line is
facilities. dropped, company-wide fixed
What would be the impact on operating income if manufacturing costs would fall by
Regular is discontinued? 10% because there is no alternative
use of the facilities. What would be
D.$39,600 decrease. the impact on operating income if
Regular is discontinued?

Regular
Units 10,000
Sales revenue 260,000
Less: Cost of goods sold 200,000
Gross Margin 60,000
Less: Selling expenses 60,000
Operating income (loss) 0

Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $30 per unit for Super. Variable

Answer: D
Change in income if Regular is discontinued:
Revenues
-240,000 -260,000
Variable COGS (180,000 – 3*(10,000)) 170000
150,000
Variable selling expenses (4*10,000) 40000
40,000
Total fixed costs (3*10,000 + 20*3700)*10% 17100
10,400
Profit
-39,600 22900

16
17

100000
0.4
150000
0.6

18 https://www.coursehero.com/file/p67pqlm/Opportunity-costs-Differe
 19 https://www.coursehero.com/file/phge5s/When-a-company-is-analyzi

650000 670,000
30% 30%
195000 201000
455000 469000

20
Manufacturing cost
variable 610000
Fixed 191000
Corp admin cost 71000
872000
Elkhart, a division of Indiana Enterprises,
currently makes 120,000 units of a product
that has created a number of manufacturing
problems. Elkhart’s costs follow.

If Elkhart were to discontinue production, fixed

manufacturing costs would be reduced by
70%. The relevant cost of deciding whether
the division should purchase the product from
an outside supplier is:

Manufacturing costs:
Variable $
Fixed
Allocated corporate administrative cost
 https://www.coursehero.com/file/p37ib3m/Mueller-has-been-approached-about-providing-a-new-service-to-its-clients-The/
variable cost)

om/file/p1and3b/Allocated-Fairline-administrative-overhead-Management-is-exploring-whether-to/

$380,000

300000
35000
99000
70%

Yes, Omaha would be better off by $24,300.

-24300

om/file/6911662/Soluiton-14/

Laredo manufactures Nuts and Bolts from

a joint process (cost = $80,000). Five
thousand
pounds of Nuts can be sold at split-off for
$20 per pound; ten thousand pounds of
Bolts
can be sold at split-off for $15 per pound.
For product costing purposes Laredo
allocates
joint costs using the relative sales value
method.
The amount of joint cost allocated to Nuts
and Bolts, respectively, would be:

$32,000 and $48,000 17

100000
0.4 38000
150000
0.6 57000
 $20 per pound
5000 pounds of nuts
$80,000 COST

9167/chapter-14-flash-cards/
om/file/p5jg8n3j/Torrey-Pines-is-studying-whether-to-outsource-its-Human-Resources-HR-activities/

om/file/p4vcnu/Highlander-Company-plans-to-incur-350000-of-salaries-expense-if-a-capital/

580000
40%
232000
348000 outflow

om/file/7923306/PROBLEMS-RELEVANT-COSTING/
6429/chapter-16-flash-cards/
om/file/pjvsq3/Cost-of-goods-sold-includes-30000-of-fixed-manufacturing-cost-If-the-special/
9167/chapter-14-flash-cards/
 0.85

om/file/p2kcqi9/When-income-taxes-are-considered-in-capital-budgeting-the-cash-flows-related-to/
and produce $410,000 of additional sales revenue if a capital project is implemented. Assuming a 30% tax rate, these two items collectivel

Carmen Company has an asset that cost

$11,000 and currently has accumulated
depreciation of $7,000. Suppose the firm
sold the asset for $3,800 and is subject to
a 30% income tax rate.

The net after-tax cash flow of the disposal

is:

11000
 7000 4000
3800 200
30%
3200
$4,000
$1,140
$2,860
$6,060

om/file/p5sp0o/Use-the-following-to-answer-questions-4-5-HiTech-manufactures-two-products/
 Super Total
4,700 14,700
987,000 1,247,000
658,000 858,000
329,000 389,000
189,000 249,000
140,000 140,000

Regular and $30 per unit for Super. Variable selling expenses are $4 per unit for Regular and $30 per unit for Super; remaining selling amo

-260,000
170000
40000
17100
22900
-10,000
 38000

57000

om/file/p67pqlm/Opportunity-costs-Differential-costs-Sunk-costs-Relevant-costs-All-future-costs/
om/file/phge5s/When-a-company-is-analyzing-a-capital-project-by-a-discounted-cash-flow/

INFLOW

540000
70% 57300 57300
71000
668300
 $743,700.00

610,000
191,000
71,000
rvice-to-its-clients-The/
ese two items collectively should appear in a capital budgeting analysis as:
er; remaining selling amounts are fixed.
Compute the following variances. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None
219,520
$12.80
17150
$6,860 (Unfavourable)

2800 2800
6.2 5.9
17360 16520

76560
2.9
26400

Sales mix

https://study.com/academy/answer/alphabeta-corporation-sells-three-products-j-k-and-l-the-following-information-was-taken
J K L
Unit sales 46,000 138,000 46,000 230,000
Selling price 66 86 83 235.00
Variable cost 43 68 53 164.00
20% 60% 20% 100%
Unit Contribution Margin 23 18 30 71.00
$ 4.60 $ 10.80 $ 6.00 21.40
647.89 1943.66 647.89 3239.44

4
$9.75
$2.25

1000
3.5
3500
86400
$ 74,760 ($17.8 per hour) 73600
12800
$74,760
$17.80
4200

1000
 1.8
1800

3500
0.5 7000

200
or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

ollowing-information-was-taken-from-a-recent-budget-jkl-unit-sales40-000130-00030-000-selling-price608075-variable-cost406550-total-fi

3239.44
8075-variable-cost406550-total-fixed.html