Why is Sleep Important?
I have attached my outline for the speech. Please use in text citations and use the 4 sources I have listed on the outline. Ty![supanova_question]
Why is Sleep Important?
I have attached my outline for the speech. Please use in text citations and use the 4 sources I have listed on the outline. Ty![supanova_question]
Why is Sleep Important?
Writing Assignment Help I have attached my outline for the speech. Please use in text citations and use the 4 sources I have listed on the outline. Ty! [supanova_question]
Why is Sleep Important?
I have attached my outline for the speech. Please use in text citations and use the 4 sources I have listed on the outline. Ty![supanova_question]
Accounting 2 Running head: Accounting Essay 1 Accounting Essay Student name University
Accounting 2
Running head: Accounting Essay 1
Accounting Essay
Student name
University name
Accounting
Date
Question1
(a)
Overhead cost entails those costs which are not attributable directly in the process of manufacturing a product. Overheads can be classified into two main categories: fixed costs are costs that remain constant throughout the manufacturing process regardless of the number of units produced. Such costs are office rent (Bril et.al, 2018). Two, variable costs have a linear relationship with the number of units produced, for instance, electricity bill. Corporates and business associates forecast overhead costs to prepare themselves for the expenses they should incur in the next financial year. Fixed costs are easy to predict since they remain constant throughout the year, while variable cost is dependent on certain factors such as a change in the units produced. Predetermined variable overhead rates are based on price tags, projections, and current energy rates that affect expenses.
For instance, Quick Mart is a company that produces three types of juices, mango, orange, and pineapple juices, depending on the orders the company receives from its customers.
For Quick Mart I have made the following assumptions for a whole year;
Sales volume= $ 100,000
Variable costs;
Direct materials= $ 25,000
Direct labor= $ 10,000
Variable overhead= $ 25,000
Electricity bill (per 200 liters produced regardless of the type of juice produced) = $ 10,000
Transportation costs per 20 liters= $ 2,000
Wear and tear for blenders and other machines per 2hous operation time= $2,000
Fixed costs;
Fixed overhead = $ 15,000
There is an assumption Quick Mart will receive at least three orders from different customers of 50 liters which requires all machines to operate for 2hours without a break. Therefore, each activity has its specific and unique predetermined criteria. Overhead costs can be calculated as follows;
Activities
Electricity
transportation
Wear and tear
Predetermined criteria
Per 100 liters
Per order
Per 2 hours of operation
cost
$ 10,000
$ 2,000
$ 2,000
Cost per order
150 liters= $15,000
3 orders= $ 6,000
2hours of operation=
$ 4000
Quick Mart Is assumed to have received three orders, each comprising 50 liters; therefore, 150 liters of juice are required to be manufactured within 2 hours of wear and tear for the blenders and other machines. The total variable overhead costs incurred is $ 25,000.
QUICK MART
INCOME STATEMENT
FOR THE YEAR ENDED
$ $
Sales 100,000
Less variable costs:
Direct materials 25,000
Direct labor 10,000 (35,000)
Less variable overhead:
Electricity 15,000
Transport costs 6,000
Wear and tear 4,000 (25,000)
Less fixed cost
Fixed overhead (15,000)
Operating profit 25,000
Explanation of the income statement findings.
Total variable cost amounting to $ 25,000 is distributed and divided among the three company activities, including electricity, transportation, and wear and tear expenses. The three activity contributes to the overhead their share on contribution is selected based predetermined overhead criterion, for instance, from the income statement prepared above there is a predetermined; which states that for every 100 liters produced the cost of production will be at $10,000. While the transportation cost will be $2,000 per every order that the customer and the wear make and tear attributable to blenders and other machines on their operation at 2 hours continuously will be at $ 2,000 per 2hours spent on the production process.
Question 2
Department sales ($) purchase orders
Books 495,000 516
Magazines 198,000 360
Newspaper 207,000 324
Total 900,000 1,200
For Cozy Bookstore, we have to make assumptions of direct expenses incurred by each department to determine the indirect expenses incurred by advertising, purchasing, book, magazines, and Newspaper (Coumoundouros, Ould Brahim, Lambert & McCusker, 2019). The estimated costs to the five departments are as follows. Purchasing and direct advertising expenses are $ 10,000 and $12,000, respectively. While for books, magazines, and newspapers, direct expenses are $ 200,000, $30,000, and $ 50,000 accordingly.
Computation of indirect expenses to all Cozy Bookstore departments
Departments
Advertisement Purchasing Book Magazine Newspaper Total
$ $ $ $ $ $
Expenses 24,000 34,000 425,000 90,000 125,000 698,000
Direct
Expenses (10,000) (12,000 ) ( 200,000) ( 30,000) ( 50,000) (302,000)
Indirect
Expenses 14,000 22,000 225,000 60,000 75,000 396,000
A clear difference must be noted between direct and indirect expenses in that all direct expenses incurred are charged to operational departments that are Books, Magazines, and newspapers. In contrast, the service departments Purchase and advertising departments have to be classified as other operational departments (Mirzamohammadi, Karimi & Pishvaee, 2020).
This company uses dollar sales as its main criteria to appropriately distribute indirect expenditures to the advertisement department. In contrast, the company has decided to use purchase orders to distribute indirect expenses to the three operational departments in the purchasing department.
Computation of service centers indirect expenses to be allocated to specific operational departments
Allocation of advertisement indirect expenses to the three-operating department, Books, Magazines and Newspaper using dollar sales criterion is as follows;
Operational departments sales $ contribution margin Advertisement Indirect expenses distributed
Books 495,000 (495,000/900,000) =0.55 (0.55*14000) = 7,700
Magazines 198,000 (198,000/900,000) =0.22 (0.22*14000) = 3,080
Newspaper 207,000 (207,000/900,000)=0.23 (0.23*14,000)= 3,220
Total sales 900,000
Total advertisement indirect expense= $14,000
Allocation of purchasing indirect expenses to the three-operating department, Books, Magazines and Newspaper is as follows;
Departments purchase orders contribution Margin distribution of
Purchase Indirect expenses
Books 516 (516/1200) = 0.43 (0.43*22,000) = 9,460
Magazines 360 (360/1200) = 0.30 (0.30*22,000) = 6,600
Newspaper 324 (324/1200) = 0.27 (0.27*22,000) = 5,940
1,200
Total purchasing indirect expenses= $ 22,000
Computation of Cozy Bookstore departmental income statement
there is an assumption made regarding; Book department, Magazine department and Newspaper department made sales as follows;
The book department made sales volume of $700,000, the Magazine department the sale volume is $300,000 and finally Newspaper department the sale revenue is projected at $ 400,00.
COZY BOOKSTORES
INCOME STATEMENT
FOR THE PERIOD ENDED
Operating Departments Service Departments
Books Magazines Newspaper advertisement purchase
$ $ $ $ $
Sales 700,000 300,000 400,000 0 0
Less direct expenses 200,000 30,000 50,000 10,000 12,000
Less indirect expenses 225,000 60,000 75,000 14,000 22,000
Less allocated service
Cost from Advertisement 7,700 3,080 3,220 0 0
Less allocated service cost
From purchase 9,460 6,600 5,940 0 0
257,840 200,320 265,840
Question 3
(a)
A variable budget entails a budget under which there is an increase or decrease of variable values with either increase or decrease of units produced by the company. For instance, water and electricity bills are used to produce commodities for sale (Charonko, & Prestridge, 2017). Therefore, the more a company produces large quantities of commodities, the higher the electricity and water bills cost.
A fixed budget is a budget that remains constant throughout the manufacturing process regardless of the number of units that a company produces. For example, rent paid for a warehouse and office will remain constant regardless of the units that the company manufactures. Rent paid remains independent of the units that a company manufactures.
Computation of selling price
Sales revenue= $ 3,000,000
Number of units produced= 15,000
Selling price = revenue/units produced
= 3000000/15000
= $200 per unit
Classification of Phoenix Company cost as either fixed cost or variable costs
Fixed budget report
$ $ Amount per unit or per year ($)
Sales 3000000 200 per 15,000 units
Variable costs
Direct materials 975,000 975000/ 15000= 65 per unit
Direct labor 225,000 225000/ 15000= 15 per unit
Repairs 60,000 60,000 per year
Utilities 45,000 45,000 per year
Packaging 75,000 75000/15000= 5 per unit
Shipping 105,000 105000/15000= 7 per unit
Total 1,485,000
Fixed cost
Depreciation 300,000 300,000 per year
Fixed utilities 150,000 150,000 per year
Manager’s salaries 200,000 200,000 per year
Sales salary 250,000 250,000 per year
Advertising 125,000 125000/15000= 8.33 per unit
Salaries 241,000 241,000 per year
Entertainment 90,000 90,000 per year
1,356,000
(b)
Three different main forms can be used to break down the unit variable costs. These forms are; one direct labor, two direct materials, and finally, any other cost categorized as variable overhead costs. From part (a) question, variable costs attributable to a product can be separated as follows;
Direct material per unit amount to $ 65
Direct labor per unit amount to $ 15
Thus, variable costs for Phoenix Company are machinery repairs and variable utilities
Total variable overhead can be calculated by adding machinery repairs to variable utilities
Variable overhead= 60,000+ 45,000
= $ 105,000
Variable overhead per unit = total variable overhead/ unit produced
= 105,000/ 15,000
= $7 per unit produced
(c)
prepare variable costing income statement, we must determine variable cost of the product as follows;
variable overhead per unit= (direct materials + direct labor+ variable overhead) all per unit produced that is 15,000 manufacture units.
Variable selling expenditure= total variable selling expenses/ units produced
Total fixed overhead = depreciation on plant + fixed utilities+ advertisement expenses + entertainment expenses
= 300,000 + 150,000+ 125,000 + 90,000
= $665,000
Fixed selling expenses = plant management salaries + sales salary + salaries
= 200,000+ 250,000 + 241,000
= $ 691,000
Structure of the template for the variable costing income statement
Revenue XXX
(unit produced and sold * sale price per unit) (xxx)
Less cost of good sold
(units sold * variable cost of the product) (XXX)
Less variable selling expense
( total variable selling expenses/units) (XXX)
Less fixed selling expenses (XXX
income XXX
We shall consider 15,000 units and a sale volume of $3,000,000. Fixed selling expenses shall remain the same regardless of the units manufactured by this company.
sales = 3,000,000
units produced and sold= 15,000
selling price per unit= $ 200
the variable cost of the product= is 200
computation of variable income statement for 15,000 units
$ $
Sales (200*15,000) 3,000,000
Less cost of goods sold
(87*15,000) 1,305,000
Less variable selling expenses
(12*15,000) 180,000 (1,485,000)
Less fixed costs
Fixed overhead 665,000
Fixed selling expenses 691,000 (1,356,000
159,000
(d)
Breakeven point refers to the lowest revenue a firm can generate and, at the same time, pay its obligations (Kurmangaliyeva, Kaumenova & Tastemirova, 2021). Whenever a company is said to have reached the breakeven point is considered to be operating at a zero profit and at the same time at zero loss.
Break-even= total cost/ contribution margin per unit
Sales per unit= 200
Fixed cost = 1,356,000
Variable cost per unit = total variable cost/ units produced and sold
= 1485,000/ 15,000
= $ 99
Contribution per unit = sales per unit- variable cost per unit
= 200-99
= $101
Break even units = total cost/ contribution per unit
= 1356,000/ 101
= 13,426
Revenue at break even point= break even units * selling price per unit
= 13,426 * 200
=$ 2,685,200
Phoenix Company
Income statement at breakeven point
$ $
Sales revenue 2,685,200
Less cost of goods sold
(13426*87) 1,168,062
Less variable selling expense
(12* 13,426) 161,112 (1,329,174)
Less fixed overhead 665,000
Less fixed selling expenses 691,000 (1356,000)
Income 26,826
Reference
Bril, A., Kalinina, O., Zotova, E., & Vilken, V. (2018). Increasing the efficiency of personnel management in municipal organizations through controlling operational risks and fixed costs. In MATEC Web of Conferences (Vol. 170, p. 01040). EDP Sciences.
Charonko, J. J., & Prestridge, K. (2017). Variable-density mixing in turbulent jets with coflow. Journal of Fluid Mechanics, 825, 887-921.
Coumoundouros, C., Ould Brahim, L., Lambert, S. D., & McCusker, J. (2019). The direct and indirect financial costs of informal cancer care: a scoping review. Health & social care in the community, 27(5), e622-e636.
Kurmangaliyeva, A., Kaumenova, A., & Tastemirova, Z. (2021, July). Break-even Analysis of Industrial Enterprises in the Regions of Kazakhstan. In 3rd International Conference Spatial Development of Territories (SDT 2020) (pp. 109-115). Atlantis Press.
Mirzamohammadi, S., Karimi, S., & Pishvaee, M. S. (2020). A novel cost allocation method applying fuzzy DEMATEL technique. Kybernetes.[supanova_question]