Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2021, 8 engineers, most of whom are recent graduates, handled 109,000 calls. The average yearly salary for software engineers was $48,000. Starting in 2022, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers' salary to $63,000 per year. In 2022, five engineers handled 117,000 calls. Required: 1. Calculate the partial operational productivity ratio for both years. 2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.) 2021 2022 1. Operational partial productivity 2. Financial partial productivity

Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2021, 8 engineers, most of whom are recent graduates, handled 109,000 calls. The average yearly salary for software engineers was $48,000. Starting in 2022, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers' salary to $63,000 per year. In 2022, five engineers handled 117,000 calls. Required: 1. Calculate the partial operational productivity ratio for both years. 2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.) 2021 2022 1. Operational partial productivity 2. Financial partial productivity

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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Apricot is an information technology (IT) manufacturing company which has been dealing in various IT equipment over 70 years. It operates from one central site which includes the production facility, warehouse and administration offices. You are an audit senior in Juit Company, and you are commencing the audit planning of Apricot Company for the year ending 31 April 2019. Apricot Company sells all of it IT equipment to multinational clients, with 75% being sold to a multi-million IT dealer. The company has a one-year contract to be the sole supplier of IT equipment. In order to secure the contract, the company reduced prices and offered 100 days credit period, while its normal credit period is 28 days, which is an equivalent of month. Currently, Apricot Company has strategically reduced the level of products directly manufactured and rather started to import significant amount of its IT equipment from India. Nearly 65% of the IT equipment is imported and 35% manufactured. Purchase…
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In March 2021, Price Company began developing a new software system to be used internally for managing its inventory. The software integrates customer orders with inventory on hand to automatically place orders for additional inventory when needed. The software then automatically records inventory as the shipment is received and read by scanners. The software development was completed in October 2021 at a cost of $150,000. Of this amount, $25,000 was spent before the application development stage was established. Price expects to use the software for at least five years. Determine the initial amount that Price should capitalize as software development costs.
AgriFoods, Incorporated prepares and delivers agricultural products to industrial-scale kitchens and food service providers. One of its key customers is Home Kitchen & Company, which provides cafeteria solutions for corporations and universities. On January 1, 2024, AgriFoods obtained a one-year contract to supply a pre-specified amount of vegetables to Home Kitchen, and received $600,000 in cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeterias for a period of six months, from April to September, and paid $70,000 in cash. For similar arrangements, Home usually charged $50,000. Required: (a) Prepare the journal entries AgriFoods would record on January 1, 2024 and January 31, 2024 with respect to the sales contract. Assume revenue is accrued on a monthly basis. (b) Prepare the journal entry to account for AgriFoods’ purchase of Home’s services.
a) Apricot is an information technology (IT) manufacturing company which has been dealing in various IT equipment over 70 years. It operates from one central site which includes the production facility, warehouse and administration offices. You are an audit senior in Juit Company, and you are commencing the audit planning of Apricot Company for the year ending 31 April 2019. Apricot Company sells all of it IT equipment to multinational clients, with 75% being sold to a multi-million IT dealer. The company has a one-year contract to be the sole supplier of IT equipment. In order to secure the contract, the company reduced prices and offered 100 days credit period, while its normal credit period is 28 days, which is an equivalent of month. Currently, Apricot Company has strategically reduced the level of products directly manufactured and rather started to import significant amount of its IT equipment from India. Nearly 65% of the IT equipment is imported and 35% manufactured. Purchase…
AgriFoods, Incorporated prepares and delivers agricultural products to industrial-scale kitchens and food service providers. One of its key customers is Home Kitchen & Company, which provides cafeteria solutions for corporations and universities. On January 1, 2024, AgriFoods obtained a one-year contract to supply a pre-specified amount of vegetables to Home Kitchen, and received $900,000 in cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeterias for a period of six months, from April to September, and paid $60,000 in cash. For similar arrangements, Home usually charged $40,000. A correct journal entry to account for AgriFoods' purchase of Home's services should includeoptions: A。a debit of $ 40,000 to Cafeteria Operating Expense and a debit of $20,000 to Sales Revenue B. a debit of $ 60,000 to Cafeteria Operating Expense and a debit of $20,000 to Deferred Revenue C. a debit of $60,000 to Cafeteria Operating Expense and a credit of $60,000 to Sales…
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