Explain the statement: The standard cost system unfavorable variances are also equivalent to under applied over head as to favorable variances are equivalent to over applied overhead.

The original Seven Essays, in a cool, new outfit ...

Email - [email protected]

24

Dec
Categories: General Questions

Comments Off

Andre has asked you to evaluate his business, Andre s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40 hour week and a 50 week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is .40 per client. Assume that the only service performed is the giving of haircuts (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.

Find the contribution margin per haircut. Assume that the barbers compensation is a fixed cost. Show calculations to support your answer.

Determine the annual break even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.

What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.

Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break even point (in number of haircuts)? Show calculations to support your answer.

24

Dec
Categories: General Questions

Comments Off

24

DecWhat are some long term assets on a bank s balance sheet?

What are some of the long term asset accounts that your think may appear on the bank s balance sheet?

24

Dec
Categories: General Questions

Comments Off

How does the price elasticity of demand impact a company s pricing strategy?

How can companies apply the target costing approach? Provide an example.

24

DecPurpose of analyzing trends in financial ratios; ethical issues in attempting to manage earnings

What is the basic purpose for examining trends in a company s financial ratios and other data?

Why would managers be tempted to manage earnings?

What ethical issues, in any, arise when a company manages its earnings?

At the end of its first year, the trial balance of Eaton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation Equipment and in Depreciation Expense Equipment.

At the end of its first year, the trial balance of Eaton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation Equipment and in Depreciation Expense Equipment. Depreciation for the year is estimated to be $6,000.

After the adjusting entries have been posted to the T accounts, how will the equipment account balance be presented on the balance sheet?