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What is the margin of safety?
Each division of Calcul Co manufactures a single product. In one of the divisions the standard profit of each unit is calculated as: Selling price$135 Total cost$100 Profit$35 It is estimated that fixed costs comprise 54% of the total cost of the product. The budgeted production and sales volumes for...
What was thelaborrate variance for the three months to 31 March 2013?
In the three months to 31 March 2013, Pegem Co paidlaborcosts of $62,597.60 for 6,760laborhours. This included 182 hours of non-productivelabor. The standardlaborcost of the product produced is $21.96, based on a standard time of 2.4 hours per unit. What was thelaborrate variance for the three months to 31 March...
If 23% of the opening receivables are still outstanding at the end of March, what will be the budgeted receivables figure at that date?
At the beginning of March 2012, INS Plc has an opening balance of $60,000 on its receivables ledger. Sales of $160,000 have been budgeted for March and it is budgeted that 60% of these will be settled in March after a cash discount of 2.5%. If 23% of the opening...
What contribution will the compressor division generate in the next month?
Coolbreeze Co manufactures refrigerators. The company isorganizedon a divisionalised basis and has two divisions (compressor and cabinet). The compressor division transfers 65% of its output to the cabinet division for $85 per unit, and sells the rest of its output to external companies for $92 per unit.a The cabinet division...
Assuming that the divisions operate with total autonomy, which of the following options is the most likely reason for making internal transfers at a value which is less than the external selling price of the compressor division?
Coolbreeze Co manufactures refrigerators. The company isorganizedon a divisionalised basis and has two divisions (compressor and cabinet). The compressor division transfers 65% of its output to the cabinet division for $85 per unit, and sells the rest of its output to external companies for $92 per unit. The cabinet division...
