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1) The company completed work on a special order in June. At the beginning of the year, xed manufacturing overhead and direct labor hours for
1) The company completed work on a special order in June. At the beginning of the year, xed manufacturing overhead and direct labor hours for the year were estimated at $148,000 and 20,000 hours, respectively. Variable manufacturing overhead was estimated at $1.45fdirect labor hour. They use a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the end of June, the costs for the special order were totaled. Materials costs on the job were $200 and labor costs totaled $288 at $7.20 per hour. Calculate the estimated total company manufacturing overhead cost, the predetermined overhead rate, manufacturing overhead applied to the special order, and the totaljob cost for the special order. Please show all calculations in the text box. You can insert a table to organize your work. 2) See the data below and answer the assigned questions. Show all your calculations. You can insert a table to organize your work. The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. What is the company's margin of safety in dollars? (1. What is the degree of operating leverage? e. How much would net operating income be if sales increase by 1,850 units? f. How many units would the company have to sell to attain a target prot of $152,108? 3) What managerial accounting tools do you think they use to manage costs and profits? What role do budgets play in the analysis? Please provide a detailed response. The questions are meant as a guideline. Feel free to elaborate. Provide examples, gtg, 4) A CPA was asked to analyze the data below for a client. Selling price of new widget $ 20a'unit Estimated sales 250,000 units Investment in additional equipment $4,000,000 Cost of production $1?.?6a'unit The company's minimum required rate of return 12% Required: What are the projected sales dollars for the new product? What is the net operating income? Calculate residual income. Calculate the return on investment (ROI) Is this a good investment for the company? Why or why not? Show your calculations in the answer box._ _ You can insert a table to organize your work. 5) A client gave her CPA the data listed below. July August September Budgeted sales $222,000 $280,000 $265,000 Accounts receivable, beginning balance $83,000 Accounts Payable beginning balance $249,000 Sales collected in the month sales are made 75% Sales collected in the month after sales are made 25 % Cost of goods Sold is 80% of the current month's sales. The company budgets for ending finished goods inventory that is 45% of the following month's Cost of Goods Sold. Prepare a Schedule of Expected Cash Collections and a Merchandise Purchases Budget for July and August. You should insert a table to organize your information. Show your calculations
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