shane does not like the idea Sharing the cost equally because he plans to stay in...
Question 3 - Activity-based costing Abby, Barry, and Chris have decided to share an apartment in Playa Vista for the coming school year. The rent will be $3,000 per month. There are two bedrooms in the apartment. Barry and Chris will share a bedroom and Abby will have her own. They estimate that groceries will cost $600 per month and that Barry and Chris will each eat 20 pounds of groceries and Abby will eat 10 pounds. Internet access will...
Question 2 - Selecting a cost driver Iggy Hospital is a small animal hospital that specializes in minor surgeries. Timmy Snyder, Iggy's CEO, Is concerned about the hospital's consumption of medical supplies. Timmy asks Tommy Poon, Iggy's CFO, to better understand the behavior of this cost. Tommy believes that there are two potential cost drivers for the hospital's medical supplies costs - the total number of procedures performed and the number of patient-hours generated by Iggy. Tommy has collected the...
Question 1 - High-low method Java Joe has been in business for one year and has collected the following cost data for utilities. Joe asks you to help him determine a cost equation to estimate monthly utility costs. Electricity Bill January February March April May kWh Used 2,400 2,800 3,660 2,700 3,920 4,160 3,480 3,980 4,200 4,100 3,960 4,220 Telephone Minutes Used 2,200 $184.00 2,120 $182.40 2,480 $189.60 1,960 $179.20 2,800 $196.00 2,880 $197.60 2,340 $186.80 2,620 $192.40 2,560 $191.20...
1. Calculate the current indirect cost allocation rate per professional hour. Calculate the total amount that would be billed to Laughlin given the current costing structure Calculate the activity cost allocation rates that could be used to allocate operating overhead costs to client jobs. Calculate the amount that would be billed to Laughlin using ABC costing. Which type of billing system is more fair to clients? Explain. Print Done Benson & Company is an architectural firm specializing in home remodeling...
You might be familiar with Crazy Eddy, an owner of the “Crazy Eddy’s” home electronics stores that used to exist when you were younger (though maybe too young to remember). Some of the larger superstores like Best Buy and Circuit City moved in and began squeezing Eddy. As it turned out his tagline, “where the prices are insane,” was quite true, and he was forced out of business. Unbeknownst to many, Eddy was an avid skier, and his desire to...
Management Accounting - It would be highly appreciated if someone could aid me in approaching this problem. TuTu Ltd. is a global manufacturer of engines for trucks. Because of high quality of engines, TuTu has enjoyed a decent profit margin for the past fifteen years. Due to the growing environmental concerns, TuTu expanded its core product market of traditional engines (TA-01) to include two types of engines (HB-02 and ET-03) for hybrid and electric trucks in 2016. The firm believes...
Budgeting and Variance Analysis In an effort to better plan for and control OR costs, SHH management asked Jack to calculate the flexible budget variance (i.e., flexible budget costs - actual costs) for OR nursing costs, including the price variance and efficiency variance. Given that Jack is interested in comparing the reported costs of both systems, he decided to prepare the requested OR variance analysis for both the current cost system and the vital-signs costing system. In addition, Jack chose...
Joseph Vidrine Joseph is a 66-year-old resident of the facility. He was admitted to Fontenot a little over a year ago after he had suffered several minor strokes. He requires close monitoring and some assistance with dressing and bathing, but is able to get around independently. Joseph is from Mamou, a rural community that has limited long-term care services. Hence, his sister decided that Fontenot would be the best place to meet his needs. Joseph never married but had a...
After reading the article, answer the questions that follow. Turning Off, Dining In Last night at dinner, I suddenly realized that no one around our table had said anything for quite a while. I looked at my son, who had headphones on and whose face was aglow with the white-blue light of this phone on which he was watching a YouTube video. My daughter was also bathed in this same glow, but a tap-tap-tap was coming from her phone as...
2) compute contribution margin for each channel 3) compute break even point (in terms of number of orders and dollars) for each distribution channel (HINT - Fixed costs are all trade show expenses. Use depreciation for the booth as a fixed cost. The booth cost should be considered an investment not a fixed cost) 4) Calculate the number of orders at a target profit of $100,000 5) Calculate the profitability for both the low and high order estimates We were...