External link to CVP   and the Airline Industry paper

CVP   and the Airline Industry paper

CVP   and the Airline Industry We’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – August 2012.” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a […]

External link to CVP   and the Airline Industry paper

CVP   and the Airline Industry paper

CVP   and the Airline Industry We’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – August 2012.” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a […]

External link to Hershey’s Chocolate Making Process

Hershey’s Chocolate Making Process

Hershey Company Watch the video Hershey’s Chocolate Making Process. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining. In at least one paragraph, describe the costing system that you would recommend Hershey use to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, […]

External link to Direct and absorption costing paper

Direct and absorption costing paper

Direct and absorption costing  The information that follows pertains to Consumer Products for the year ended December 31, 20X6.   Inventory, 1/1/X6 24,000 units   Units manufactured 80,000   Units sold 82,000   Inventory, 12/31/X6 ? units   Manufacturing costs:   Direct materials $3 per unit   Direct labor $5 per unit   Variable factory overhead $9 per unit   Fixed factory overhead $280,000   […]

External link to Break-even and other CVP relationships 

Break-even and other CVP relationships 

Break-even and other CVP relationships  Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. a. How many patient days does the hospital need to break even? b. What level of revenue is needed to earn a target income of $540,000? c. If variable costs drop to $36 per patient day, what […]

External link to High-low method presentation paper

High-low method presentation paper

High-low method The following cost data pertain to 20X6 operations of Heritage Products:   Quarter 1  Quarter 2  Quarter 3  Quarter 4    Shipping costs $58,200 $58,620 $60,125 $59,400   Orders shipped 120 140 175 150 The company uses the high-low method to analyze costs. a. Determine the variable cost per order shipped. b. Determine the fixed shipping costs per quarter. c. If present cost […]

External link to Computations using a job order system 

Computations using a job order system 

Find the unknowns for each of the divisions. 2. Computations using a job order system  General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger; Work in process  $ 35,200 Finished goods  86,900 Cost of goods sold  128,700 Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct […]

External link to Straightforward variance analysis paper

Straightforward variance analysis paper

Straightforward variance analysis  Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.   Direct materials: 4   units @ $6.50 $26.00   Direct labor: 8 hours @   $8.50 68   Variable factory   overhead: 8 hours @ $7.00 56   Fixed factory overhead:   8 hours @ 2.5 20   Total standard cost per   unit $170.00 The following information pertains to […]

External link to Basic flexible budgeting assignment

Basic flexible budgeting assignment

Basic flexible budgeting Centron, Inc., has the following budgeted production costs:   Direct materials $0.40 per unit   Direct labor 1.80 per unit   Variable factory overhead 2.20 per unit   Fixed factory overhead   Supervision $24,000   Maintenance 18,000   Other 12,000 The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are […]

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