Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cost perCar WashedCleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesFixed Costper Month$ 0.80$ 1,200$ 0.06$ 0.15$ 4,600$ 0.40$ 8,300$ 1,900$ 1,300$ 0.04For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,000 cars inAugust and to collect an average of $6.70 per car washed. The company actually washed 8,100 cars in August.Required:Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Lavage RapideActivity Variances

Lavage Rapide - Activity Variances (August)We can calculate the activity variances for Lavage Rapide…

Answered: Lavage Rapide is a Canadian company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Prepare the company’s planning budget for August.
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
Latexim company manufactured clothes. Latexim uses a process costing system. Thefollowing information on Assembly Process is extracted from Latexim’s record;Input materials 3,200 kilogram (kg) RM18 per kgLabour and overhead incurred RM12,000Expected normal loss 7% of inputAssuming that the losses can be sold as scrap for RM1.50 per kg. You are requiredcompute:i) Scrap value of normal loss in RM.ii) Expected output in kg. iii) Calculate cost per kg
Latexim company manufactured clothes. Latexim uses a process costing system. Thefollowing information on Assembly Process is extracted from Latexim’s record;Input materials 3,200 kilogram (kg) RM18 per kgLabour and overhead incurred RM12,000Expected normal loss 7% of inputAssuming that the losses can be sold as scrap for RM1.50 per kg. You are requiredcompute:i)Calculate cost per kg
Determine the Manufacturing Overhead Based on the given information, determine the Purchases EFS Systems undertakes its own machine maintenance. The depreciation on the equipment is P20,000 per year and operating cost is P2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Determine the Prime Cost Determine the Finished Goods, Beginning Determine the Conversion Cost Determine the Manufacturing Cost Determine the Finished Goods, Ending
Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs over production departments, which are the total costs for each department? O a. Total costs…
Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs…
The construction Company lands a project for painting offices with the following information available with regards to cost of paint: Paint 1 (Prepping) R78.00 Paint 2 (Finishing) Direct Material Cost per unit R92.00 Direct labor Cost per unit R48.00 R68.00 Direct overhead cost per unit R17.00 R16.00 Fixed cost per unit R135.00 R187.00 Sales price per unit R325.00 R520.00 The new supplier offers paint 1 at R187 and Paint 2 at R155 2.1 Calculate the lifecycle cost of the painting Job 2.2 Should the company buy 1 or both paints from current supplier or new supplier? I.
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Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided: Costs: Wages and salaries $204,000 Depreciation 114,000 Utilities 116,000 Activity Cost Pools Assembly Setting Up Other Wages and Salaries 0.58 30% 10% Depreciation 0.39 45% 20% Utilities 0.24 40% 30% How much total cost would be allocated to the Assembly activity cost pool?
I b) Refer to the following data: Direct material used $180 000 Advertising costs $ 5 000 Indirect labour $ 8 000 Rent on corporate office $ 20 000 Depreciation on factory equipment $ 60 000 Direct labour $ 30 000 Factory cleaners wages $ 20 000 Indirect materials $ 35 000 Required (show your workings for each question): Determine each of the following costs: (list the costs under each cost category when calculating the answer). Period costs

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