am.222. Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility nearMontreal. The following table provides data concerning the company's costs:Fixed Cost Cost per Carper MonthCleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesWashed$ 0.50$ 1,000$ 0.06$ 0.10$ 4,600$ 0.20$ 8,400$ 2,000$1,500$ 0.01For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company expects towash 8,100 cars in August and to collect an average of $6.40 per car washed.Required:Prepare the company's planning budget for August.Lavage RapidePlanning BudgetFor the Month Ended August 31Budgeted cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income0$0

We should prepare the Planning Budget for Lavage Rapide for AugustThe Company expects to wash 8,100…

Answered: Lavage Rapide is a Canadian company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Required: 1. Calculate the prime cost per cleaning. 2. Calculate the conversion cost per cleaning. 3. Calculate the total variable cost per cleaning. 4. Calculate the total service cost per cleaning. 5. What if rent on the office that Jean and Tom use to run HHH increased by 1,500? Explain the impact on the following: a. Prime cost per cleaning b. Conversion cost per cleaning c. Total variable cost per cleaning d. Total service cost per cleaning
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Prepare the company’s planning budget for August.
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May but actually worked 2,700 repair-hours. The company expects its sales to be $54.00 per repair-hour. Required: Compute the company's activity variances for May. Note: 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. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net…
I b) Refer to the following data: Direct material used $180 000 Advertising costs $ 5 000 Indirect labour $ 8 000 Rent on corporate office $ 20 000 Depreciation on factory equipment $ 60 000 Direct labour $ 30 000 Factory cleaners wages $ 20 000 Indirect materials $ 35 000 Required (show your workings for each question): Determine each of the following costs: (list the costs under each cost category when calculating the answer). Period costs
King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?
b) Refer to the following data: Direct material used $180 000 Advertising costs $ 5 000 Indirect labour $ 8 000 Rent on corporate office $ 20 000 Depreciation on factory equipment $ 60 000 Direct labour $ 30 000 Factory cleaners wages $ 20 000 Indirect materials $ 35 000 Required (show your workings for each question): Determine each of the following costs: (list the costs under each cost category when calculating the answer). Product costs
Byron Truck Repair uses a specialized hydraulic lift to work on trucks and busses. Data on the lift and its usage follow: Resources used Operation Maintenance Resources supplied Operation Maintenance Sales revenue from truck repair totaled $32,000. Required A Required B Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Prepare a traditional income statement. Truck repair sales Operation costs Maintenance costs Cost Driver Rate $6.00 per lift-hour $4.50 per job Complete this question by entering your answers in the tabs below. $ 18,000 $ 2,700 Traditional Income Statement Required A Required B b. Prepare an activity-based income statement. Truck repair sales Costs Prepare an activity-based income statement. Volume related - Operation Batch related Maintenance Total costs Truck repair operating profits Complete this question by entering your answers in the tabs below. Activity-Based Income Statement Resources Used $ 0 Unused Resource…
Understanding the assignment manufactures computer chips. It incurs the following costs in manufacturing chips and in operating the sts is mpora. sider a company that company. 1. Plastic board used to mount the chip, $3.50 each. 2. Assembly worker pay of $15 per hour to attach chips to plastic board. 3. Salary for factory maintenance workers who maintain factory equipment. 4. Factory supervisor pay of $55,000 per year to supervise employees. 5. Salary paid to the chief financial officer, $95,000. 6. Advertising costs of $7,800 paid to promote ploducts. 7. Salespersons' commissions of S0.50 for each assembled chip sold. 8. Management has the option to rent the manufacturing plant to six local hospitals to store medical records instead of producing and assembling chips. 9. Real estate taxes paid on the factory, $14,500 Classify cach cost in the following table according to the categories listed in the table header. A cost can be classified under more than one category. For example, the…
Consider the following costs: £ Production supervisor’s salary 34,000 Direct materials 27,000 Selling expenses 16,000 Indirect materials 22,000 Depreciation of factory equipment 25,000 Direct labour 23,000 Utilities for factory 9,000 Administrative expenses 21,000 What is the total amount of manufacturing overhead? a. £89,000 b. £68,000 c. £90,000 d. £140,000
Accounting Alta Ltd. is manufacturing three products : A, B and C. The costs of manufacture are as follows Fixed costs of Alta Ltd. is $15,000. Calculate profit and do a CVP Analysis for Alta Ltd. Products Raw Material Labour Overheads Sales A 16,000 14,000 10,000 60,000 B 20,000 17,000 12,000 70,000 C 26,000 18,000 14,000 80,000

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