Bridgeton Industries Question 1: The overhead allocation rate used in the 1987 model-year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of direct labor dollar cost. Calculate the overhead allocation rate using the 1987 model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred?
Question 1: Score 0/1 Your response Correct response P16-37 Find Missing Data for Profit Variance Analysis (L. O.4) Find the values of the missing items. Assume that the actual sales volume equals actual production volume. (There are no inventory level changes.) (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
GST inclusive) ADD G6 + G7 Divide G8 by eleven G9 66 191 728 100 G2 G3 Acquisitions you have made Capital acquisitions (GST inclusive) All other acquisitions (GST inclusive) ADD G10 + G11 Acquisitions for making input taxed sales & income & other supplies Acquisitions with no GST in the price Total estimated private use of acquisitions + non-income tax deductible acquisitions ADD G13 + G14 + G15 G7 G8 0 728 100 G12 minus G16 Adjustments (must be total transaction value, i.e. GST inclusive) ADD G17 + G18 Divide G19 by eleven Harcourt Motors ABN 40 915 311 539 G16 G17 2 597 413 244 BAS
Since the Walton Work Wear line is in the production stage, its accumulated development costs should be capitalized. The Carroway Cool Top has not started it commercial production which would allow the development costs not to be amortized yet. Also interest costs on loans to generate financing for the R&D activates of a product can be capitalized rather than expensed. The capitalization of interest would allow CCL to reduce taxable income in the future when it is more profitable. I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect.
A total rise of 240.72%. The annual growth per annum is 18.18% for 1987 to 1988, 16.39% for 1988 to 1989, 14.89% for 1989 to 1990, 13.79% for 1990 to 1991, 12.85% for 1991 to 1992, 12.06% for 1992 to 1993, 11.41% for 1993 to 1994, 10.84% for 1994 to 1995, 10.38% for 1995 to 1996 and 9.92% for 1996 to 1997. | |EBIT |Depreciation |Capex | | |Annual Growth Rates: |1,045 |1,05 |1,02 | | |Year |EBIT |Depreciation |Capex |Cash Flow | |1987 |82,40 |42,10 |79,60 |16,06 | |1988 |86,11 |44,21 |81,19 |18,98 | |1989 |89,98 |46,42 |82,82 |22,09 | |1990 |94,03 |48,74 |84,47 |25,38 | |1991 |98,26 |51,17 |86,16 |28,88 | |1992 |102,69 |53,73 |87,88 |32,59
In this, you can consider items such as interest rates, lease terms, facility expenses, and location. The good about leasing is that it is not considered a debt on the balance sheet and also there is the option to buy at the end of the term at a lower price. Also, to be considered if CSI decided to buy vs lease, are things such as maintenance costs, insurance, owner obligations, and obsolescence. If CSI leases the building and equipment, it would be left up to the lessor to maintain these things, which would also reduce some costs, on top of the fact that the lease mortgage would be less than if they bought the building. With everything that has been reviewed, I would recommend that CSI lease vs buying right now.
Analysis-Beta Corporation 1. Sources of cash-Amount received from customers, Issuance of common stock(1991) Uses of cash-Amount paid to suppliers, Investments in capital(1991) 2. Difference between net income and cash-Difference between account receivables and payables ,high value of depreciation 3. Cash flow from operations- | 1991 | 1990 | 1989 | Cash flow from operations | 3919 | 7000 | 3670 | Capital expenditures | 6031 | 4600 | 3650 | | No | Yes | Yes | 4. No dividend payments | 1991 | 1990 | 1989 | Cash flow from operations | 3919 | 7000 | 3670 | Capital expenditures | 6031 | 4600 | 3650 | | No | Yes | Yes | 5.
The price of plastics decreased from $0.19 to $0.12.The price of copper rod stayed the same at $.48 a pound. The increase in price of plastics can explain why inventories of plastics and copper changed. The expected value of Copper Rod = 5,900,000*.48 = 2,832,000 The expected value of plastics = 1,100,000 * .12 = 132,000 The expected value of plastics is not consistent with carrying costs at lower of cost or market pricing. This area needs to be checked by the auditor. The square footage allotment also needs further examination.
Hence, the nodes are pruned at the right points, minimizing the errors. It can rightly be said that “overfitting” is not a concern for this model. 3. Using the same costs as before ($18 selling price, $9 wholesale price, $3 shipping and $0.50 mailing costs), estimate what the gross profit (in dollars and as a % of gross sales) as well as the return on marketing would be if the “The Art History of Florence’ offer were only mailed to those predicted by the CHAID
The comparison of overhead costs for Polynesian Fantasy and Vanilla by the two costing methods is: Polynesian Fantasy Vanilla Old Costing method 5.6 5.4 New Costing method 9.06 4.65 Change (New-Old) 3.46 (0.75) There won’t be any change on total company profits. But it will be some differences on individual product between applying two methods. What should Will do The new method (Activity-Based Costing) attempts to provide a better model of the cost of producing products or providing services and delivering them to customers. It promises to depict costs more accurately through a deeper understanding both of the activities involved and the resources consumed by each of these activities. Will should use Activity-Based Costing.