Strauss Manufacturing Company manufactures a part that it uses
Question # 00752036
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Updated on: 02/23/2020 01:41 PM Due on: 02/23/2020
- Strauss Manufacturing Company manufactures a part that it uses in the manufacture of another product. The variable costs of producing this part are $5.50. Fixed overhead costs of $2.25 per unit are applied to this part and would continue to be incurred. It could purchase this part for $5.25. The net advantage (disadvantage) of making this part is:
- Tisdale Company is considering a plan to discontinue their widgets line, which produces revenues of $250,000 and costs of $400,000 (75% variable, 25% fixed). The effect on net income of no longer manufacturing widgets is a:
- Jordan, Inc., is considering dropping the production of Product J. It provides revenues of $350,000 but incurs costs of $490,000, 20% of which are fixed costs. The net advantage (disadvantage) of retaining Product J is:
- Jay Vee Corporation, a merchandising company, estimates that its sales for 2016 will be $90,000, $120,000, $110,000, and $126,000, respectively, for each quarter. Its cost of goods sold is 65% of sales, the ending inventory as of December 31, 2015, was $35,100, and it prefers to maintain inventory with a cost of 60% of the next quarter's cost of goods sold. The production required for the first, second, and third quarters, respectively, are:
- Fixed production costs for the Velvet Corporation are budgeted at $80,000, assuming 40,000 units of production. Actual sales for the period were 35,000 units, while actual production was 40,000 units. Actual fixed costs were $70,000. What is the budget variance?
- The Stanley Company expects its sales to be $100,000 for the first quarter of 2017. It estimates that sales will increase by $10,000 each quarter. Based on past experience, it estimates that 60% of each quarter's sales will be charged by the customer, 75% of which will be collected in that same quarter and 25% of which will be collected in the following quarter. The beginning balance in the Accounts Receivable account is $14,400, all of which will be collected in cash in the first quarter. What amount of the Accounts Receivable will be collected in the fourth quarter?
- The Odon Company has prepared its sales budget for the first two quarters of 2016. Expected sales in units are 480,000 in the first quarter and 840,000 in the second quarter. The company likes to maintain an inventory at the end of each quarter equal to one fourth the next quarter's expected sales. The company had 140,000 units in inventory on December 31, 2015. How many units does the company need to produce during the first quarter of 2016?
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Rating:
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Solution: Strauss Manufacturing Company manufactures a part that it uses