Jantzen Manufacturing Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2010, are as shown below.BudgetDifferencefrom Budget Sales $2,507,800 $64,810 FCost of goods soldVariable 1,304,000 43,910 FControllable fixed 207,490 7,210 USelling and administrativeVariable 222,400 7,480 UControllable fixed 54,560 3,990 UNoncontrollable fixed costs 76,840 5,470 U In addition, Jantzen Manufacturing incurs $185,670 of indirect […]

Kitchen Care Inc. (KCI) is a manufacturer of toaster ovens. To improve control over operations, the president of KCI wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for KCI’s expected costs at production levels of 90,000, 100,000, and 110,000 units. Variable costs Manufacturing ……… $6 per unit Administrative ……… $3 per unit […]

Larussa Inc. is preparing its annual budgets for the year ending December 31, 2011. Accounting assistants furnish the data shown below. ? An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 […]

31a) Marcus (ssn 397 73 8399) and Debra Cross own three homes. Information regarding the amount of acquisition indebtedness, as well as interest and taxes paid on each home during the year is as follows. Acquisition Interest. Taxes Indebtedness. Paid. Paid Principal residence. $240,000. $18,330. $2,400 Vacation home #1. $300,000. $18,583. $2,800 Vacation home # 2. $350,000. $19,044. $3,400 During 2012 the crosses made cash […]

Manning Plumbing Company is a newly formed company specializing in plumbing services for home and business. The owner, Peyton Manning, had divided the company into two segments: Home Plumbing Services and Business Plumbing Services. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Peyton has asked you to help him create a performance reporting system […]

39. Lott Bicycle Company has been manufacturing its own seats for its bicycles. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. […]

Network Computing Devices Inc. was founded in 1988 in Mountain View, California. The company develops software products such as X terminals, Z mail, PC X ware, and related hardware products. Presented below is a discussion by management in its annual report. NETWORK COMPUTING DEVICES, INC. Management Discussion The Company’s operating results have varied significantly, particularly on a quarterly basis, as a result of a number […]

4.A 60 day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is Answer a. $10,200 b. $10,000 c. $11,200 d. $9,800 5. Who pays the freight cost when the terms are FOB destination? Answer a. the buyer b. either the buyer or the seller c. the customer d. the seller 6. Use the […]

On January 1, 2011 the Batista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2011. ? The ending raw materials and finished goods inventories at December 31, 2010, follow the same percentage relationships to production and sales that occur in 2011.Three pounds of raw materials are required to make each unit of finished goods. Raw materials […]

4. Bartlow, Inc had the folling income statement for the month of May. Sales Revenue 428,000 Cost of goods sold 205,440 Gross Margin 222,560 Less: Selling Expenses 81,320 Administrative Expenses 72,760 Operating Income 68,480 What was the sales revenue percent? 1. 100% 2. 48% 3. 52% 4. 16% 5. Junko company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished goods Inventory had the […]