| a-1 . | A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ INDIRECT MATERIALS: | A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ |
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| A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ |
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INDIRECT MATERIALS: | A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ INDIRECT MATERIALS: | A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ |
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| A large discount store has approached the owner of Lang aboutbuying 7,000 calculators. It would replace The Math Machineâs labelwith its own logo to avoid affecting Langâs existing customers.Because the offer was made directly to the owner, no salescommissions on the transaction would be involved, but the discountstore is willing to pay only $5.80 per calculator. Calculate thecontribution margin from the special order. (Negativeamount should be indicated by a minus sign.) CONTRIBUTION MARGIN(OR LOSS) ( ) Lang has an opportunity to buy the 47,000 calculators itcurrently makes from a reliable competing manufacturer for $6.50each. The product meets Langâs quality standards. Lang couldcontinue to use its own logo, advertising program, and sales forceto distribute the products. Should Lang buy the calculators orcontinue to make them? |
Calculate the total cost for Lang to make and buy the 47,000calculators. MAKE BUY TOTAL COST ( ) ( ) | Should Lang buy the calculators or continue to make them, if thevolume of sales were increased to 74,000 units? Calculate the contribution to profit from operating thecalculator division. (Negative amount should be indicatedby a minus sign.) CONTRIBUTION TO PROFIT (LOSS) ( ) Allocating costs among products 12 LO 12-3 Longman Construction Company expects to build three new homesduring a specific accounting period.
The estimated direct materials and labor costs are as follows. |
| Expected Costs | Home 1 | Home 2 | Home 3 | | Direct labor | $ | 70,000 | | $ | 94,000 | | $ | 187,000 | | | Directmaterials | | 91,000 | | | 136,000 | | | 199,000 | | | Assume Longman needs to allocatetwo major overhead costs ($38,610 of employee fringe benefits and$29,820 of indirect materials costs) among the three jobs. |
| Required | Choose an appropriate cost driver for each of the overhead costsand determine the total cost of each house. (Round"Allocation rate" to 3 decimal places.) | FRINGE BENEFITS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ______________ x _______________ = ________________ 2 ______________ x _______________ = _______________ 3 ______________ x _______________ = ________________ INDIRECT MATERIALS: HOUSE ALLOCATION RATE x WEIGHT OF BASE = ALLOCATED COST 1 ________________ x _______________ = ______________ 2 ________________ x _______________ = ______________ 3 ________________ x _______________ = ______________ THE COST OF THE COMPONENTS TO DETERMINE THE TOTAL COST OF EACHHOUSE: EXPECTED COSTS HOME 1 HOME 2 HOME 3 TOTAL DIRECT LABOR ________ __________ _________ ____________ DIRECT MATERIALS _______ ___________ __________ ____________ FRINGE BENEFITS ________ ___________ _______________________ INDIRECT MATERIALS ________ ___________ _______________________ TOTAL COST _________ ___________ ___________ _____________ |
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