From the details provided above you will note that Retail Banking occupies 60% of the area which includes allocation of shared areas. Commercial Banking occupies 30% and Financial Planning 10%. This converts directly to the proportion of electricity costing that each department will be responsible for, being 60% Retail Banking, 30% Commercial Banking and 10% Financial Planning bringing the total allocation to 100%. Actual $ cost allocation For the reporting period of 1st July 2013 to 30th June 2014 the total cost of electricity charged to ANZ Warrnambool and paid for in the first instance by Retail Banking was $45,000. The electricity cost was charged on a quarterly basis and charged back to each department on a quarterly basis also.
Assume commercial use is at the March level. Also assume that the Sales Promotion and Corporate Services expenses will be at the same levels as in March. Salem Data Services Contribution Margin Income Statement For the Quarter Ended March 31, 2004 Revenues Intracompany $ 82,000 Commercial 110,400 Total Revenues: $ 192,400 Less: Variable Expenses Power (at $4.70) $ 1,612 Operations: Hourly Personnel (at $24.00) 8,232 Total Variable Expenses: $ 9,844 Contribution Margin $ 182,556 Less: Fixed Expenses Rent $ 8,000 Custodial Services 1,240 Computer Leases 95,000 Maintenance 5,400 Depreciation 26,180 Operations: Salaried Staff 21,600 Systems Development & Maintenance 12,000 Administration 9,000 Sales 11,200 Sales Promotion 8,083 Corporate Services 15,236 Total Fixed Costs: $ 212,939 Net Income $ (30,383) 4. Assuming the intracompany demand for service will average 205 hours per month, what level of commercial revenue hours of computer use would be necessary to
What would the cash conversion cycle for The Greek Connection have been in 2012 had it matched the industry average for accounts receivable days? Question 5. Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30. Normal Cost of Trade Credit = [Discount percentage/(100-Discount percentage)]*[365days/(credit outstanding-Discount Period)] Normal Cost of trade credit = (3/97)*(365/30) = 37.63% Question 6.
5, 6) Lima Parts, Inc., shows the following overhead information for the current period: Actual overhead incurred $ 29,400 2/3 of which is variable Budgeted fixed overhead $ 8,640 per hour Standard variable overhead rate per direct labor-hour $ 9.00 Standard hours allowed for actual production 2,350 hours Actual labor-hours used 2,200 hours ________________________________________ Required: What are the variable overhead price and efficiency variances and fixed overhead price variance? (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). Omit the "$" sign in your response.) Amounts Variable overhead: Price variance $ (0%) (0%) Efficiency variance $ (0%) (0%) Fixed overhead: Price variance $ (0%) (0%) ________________________________________ P16-45 Overhead Variances (L.O.
Oasis 6 Person, 40 Jet Hot Tubs Spas- $3,799.00 Based on my research on how it would cost to finance at 21% interest rate I will be spending and average of $746 more. If I were to save the money in a three
MARRIOTT CORPORATION: THE COST OF CAPITAL Lodging Division Cost of Debt From Table A, * Fraction of Debt at Floating: 50% * Fraction of Debt at Fixed: 50% Using credit risk premium to calculate cost of debt, the equation is as follows: Cost of Debt = Low risk rate+Risk premium Floating Rate -- Assume the interest rate of floating rate debt changes every year so we use 1-year rate U.S. Government interest rate, which is 6.90% (from Table B). Therefore, the cost of floating rate debt equals 6.9% plus the 1.1% risk premium, which totaled to 8%. Fixed Rate -- As lodging assets have long useful lives, we use the long-term debt rate, i.e. 30-year U.S. Government interest rate, which is 8.95% (from Table B). Therefore, the cost of fixed rate debt equals 8.95% plus 1.1% risk premium, which totaled to 10.5% Cost of Debt = (0.5 x 0.08) + (0.5 x 0.105) = 0.095 = 9.25% [since floating rate and fixed rate debt both weigh 50%, we use the weighted average approach to calculate the total cost of debt rate] Based on historical data analysis below, we get an average income tax rate of 42%.
The hotel estimate is $15,000.00 which includes a continental breakfast provided by the hotel. The meal expense for the training includes snacks, brunch and dinner. This expense is estimated to cost $6000.00. As the hotel reservations are being secured the location
1995 Contract Negotiations Parameter | Expected | Offered | Remarks | Peak Period Rooms | 875 | 775 | Easy to let at full price. | Off Period Rooms | 150 | 150 | | Mid Period Rooms | 850 | 805 | Could be possible if date list modified. | Room Rate | $50 Per Night | $58 Per Night | Plus 12% Occupancy Tax | Breakfast Price | $ 7 | $8 | All taxes and gratuities. | Complimentary Rooms | | 1 For every 20 rooms | | Complimentary Hospitality Suite | | | 1:20 Complimentary Breakfasts | 3. Off Period Off Period | | Principal Objective: Improve Occupancy Rate | | | 2 pts per room as long as Room Rate exceeded min levels | | | | | | | | | | Min Level | $39 | | | | | | | Rate > $49 | 1 Bonus Point | | | | | | | | | | | | | | | Pick Up Rate | 100% | | | | | | | | | | | | | | | No Of Rooms : | 150 | | | | | | | Rate | $58 | | | | | | | No Of Points | 450 | | | | | | | | | | | | | | 4.
Phuket Beach Hotel Lease Option Years Room Revenue Revenue Reduction Rental Income Depreciation Repairs & Maint. Revenue Reduct. Additional Oper. Inc. Taxes Net Inc. After Tax Depreciation Initial Investment After-tax Cash Flow NPV IRR MIRR Equivalent Annual Annuity 0 Monthly Lease Rent Escalation 1 13,200,000 (1,650,000) 2,040,000 (192,500) (10,000) (1,650,000) 187,500 (56,250) 131,250 192,500 (770,000) (770,000) $165,016.99 20.8% 16.3% 52,906 323,750 300,650 Revenue Red.% 0.00% 6.25% 12.5% 18.75% 25.00% Revenue Red.% 2 13,464,000 (1,683,000) 2,040,000 (192,500) (10,000) (1,683,000) 154,500 (46,350) 108,150 192,500 170,000.00 5.00% 3 14,137,000 (1,767,125) 2,142,000 (192,500) (10,000) (1,767,125) 172,375 (51,713) 120,663 192,500 313,163 NPV $ 3,942,358.36 $ 2,053,687.68 $ 165,016.99 ($1,723,653.69) (3,612,324) NPV 0.00% $ 3,942,358.36 6.25% $ 2,053,687.68 12.5% $ 165,016.99 18.75% ($1,723,653.69) 25.00% (3,612,324) Taxes WACC(COC): 4 14,844,000 (1,855,500) 2,142,000 (192,500) (10,000) (1,855,500) 84,000 (25,200) 58,800 192,500 251,300 IRR 190.3% 111% 20.8% 20.8% 20.8% IRR MIRR MIRR 30% rd 10.75% wd 10% re 25% we 12% 75% WACC = kd*(1-T)*wd + ke*we WACC = rd * (1-T) * wd + re*we 74.2% 53.3% 16.3% -100% -100% 74.2% 53.3% 16.3% #Num -100% #Num -100% This is what the IRR looks like at 18.75% and 25% revenue reductions 190.3% 111% 20.8%
A CASE STUDY Activity-based Costing and Pricing Submitted by: Maryland Tano August 24, 2011 Requirements: 1. Using direct labor-hours as the base for assigning manufacturing overhead cost to products, do the following: a. Determine the predetermined overhead rate that will be used during the year. Data given: * Estimated manufacturing overhead cost $ 2,200,000 * Direct labor hours 50,000 hours Answer: Predetermined overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. Determine the unit product cost of one pound of the Kenya Dark coffee and one pound of the Viet Select coffee.