E7.4 Use incremental analysis for special order. (LO 2), AN Klean Fiber Company is the creator of Y-

E7.4 Use incremental analysis for special order. (LO 2), AN Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are produce 1,000,000 follows. Total Per Undergarment Direct materials $2,000,000 $2.00 750,000 Direct labor 0.75 1,000,000 1,500,000 250,000 $5,500,000 Variable manufacturing overhead 1.00 Fixed manufacturing overhead Variable selling expenses 1.50 0.25 $5.50 Totals The U.S. Army has approached Klean Fiber and expressed Go undergarments for soldiers in extremely for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order. interest in purchasing 250,000 Y- warm climates. The Army would pay the unit cost an additional $1 per undergarment to cover all other costs and provide a Instructions Using incremental analysis, determine whether Klean Fiber should accept the Army's offer.

Do you think this figure is more helpful than a narrative would be in understanding the flow of…

Do you think this figure is more helpful than a narrative would be in understanding the flow of events in the process?

The Garcia-Lanoue Company produces industrial goods. The company receives purchase orders from its…

The Garcia-Lanoue Company produces industrial goods. The company receives purchase orders from its customers and ships goods accordingly. Assuming that the following conditions apply, develop a document flowchart for this company:

a. The company receives two copies of every purchase order from its customers.

b. Upon receipt of the purchase orders, the company ships the goods ordered. One copy of the purchase order is returned to the customer with the order, and the other copy goes into the company’s purchase order file.

c. The company prepares three copies of a shipping bill. One copy stays in the company’s shipping file, and the other two are sent to the customer.

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gain

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Capital Asset Market Value Tax Basis Holding Period L stock $ 50,000 $ 41,000 > 1 year M stock 28,000 39,000 > 1 year N stock 30,000 22,000 O stock 26,000 33,000 Antiques 7,000 4,000 > 1 year Rental home 300,000* 90,000 > 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).

Ignore the Net Investment Income Tax.

Tax Rates for Net Capital Gains and Qualified Dividends Rate* Taxable Income Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates 0% $0 – $78,750 $0 – $39,375 $0 – $39,375 $0 – $52,750 $0 – $2,650 15% $78,751 – $488,850 $39,376 – $244,425 $39,376 – $434,550 $52,751 – $461,700 $2,651 – $12,950 20% $488,851+ $244,426+ $434,551+ $461,701+

$12,951+

a. Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return?

b. Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return?

Charlie’s Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Pro

Charlie’s Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,680 square feet and holds assets valued at about $58,200. The Cutting Department spans about 34,320 square feet and holds assets valued at about $135,800. Charlie’s Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value.

a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.
%

b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
%

Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,680 square feet and holds assets valued at about $58,200 The Cutting Department spans about 34,320 square feet and holds assets valued at about $135,800. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department. b. Determine the percentage of Security costs that should be allocated to the Cutting Department.

Multiple Choice Question 70 Blossom, Inc. leased equipment from Tower Company under a 4-year lease r

Multiple Choice Question 70

Blossom, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $444152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Blossom, Inc.’s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Blossom, Inc.) is 9%. Assuming that this lease is properly classified as a capital lease, what is the amount of principal reduction recorded when the second lease payment is made in Year 2?

PV Annuity Due

PV Ordinary Annuity 9%, 4 periods

3.53129

3.23972 11%, 4 periods

3.44371

3.10245

$263020 $314648 $444152 $342967

Which method of cost data analysis is generally considered the most accurate? Select one: A. Scatter

Which method of cost data analysis is generally considered the most accurate?

Select one:

A. Scattergraph method

B. High-low method

C. Least-squares regression method

D. All of the above

E. None of the above

The firm has always used a manual accounting system, which includes procedures for time and billing….

Assume that you started your own law practice ten years ago, specializing in estate planning, and you currently employ five attorneys, two legal assistants, one legal secretary, and a bookkeeper/receptionist. The firm has always used a manual accounting system, which includes procedures for time and billing. How could an automated time and billing system help your firm? Search the Internet for a specific technology to automatically capture a professional employee"s time spent on a particular client engagement. What is the name of the software package and what are the primary features of this BPM software?

please answer question 6 and 7 indicating how you get the answer. thnks points eBook Required 1. Do

please answer question 6 and 7 indicating how you get the answer. thnks points eBook Required 1. Do you agree with the inter's decision to use an absorption format for her segmented Income statement 2. Based on a review of the Intern's segmented income statement. a How much of the company's common fixed expenses did she allocate to the Commercial and Residential segments b Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercia Residential segments: (a) sales, (b) cost of goods sold, or (C) gross margin? 3. Do you agree with the inter's decision to allocate the common fixed expenses to the Commercial and Residential segments 4. Redo the Intern's segmented Income statement using the contribution format 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division 7. Assume the company decided to pay its sales representatives in the commercial and Residential Divisions a total monthly sa $22000 and $44,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the break even point in dollar sales for the Commercial Division and the Residential Division Print References Complete this question by entering your answers in the tabs below. Reg 1 Req ZA Reg 2B Req 3 Rega Reg5 Reg 6 Req 7 Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $22,000 and $44,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division. (Round CM ratio to 2 decimal places and final answers to the nearest whole dollar amount.) Show less Commercial Division Break-even points 261,111 Residential Division $ 587.500

Henna Co. produces and sells two products, T and O. It manufactures these products in separate facto

Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 54,000 units of each product. Sales and costs for each product follow.

Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 885,600 531,360 354,240 210,240 144,000 46,080 $ 97,920 Product o $ 885,600 177, 120 708,480 564,480 144,000 46,080 $ 97,920 Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Product T Contribution Margin Ratio Choose Numerator: Sales = / Choose Denominator: | 1 Fixed costs per unit Contribution Margin Ratio Contribution margin ratio Break-even point in dollars Choose Numerator: 1 Choose Denominator: = Break-Even Point in Dollars = Break-even point in dollars Product O Contribution Margin Ratio Contribution margin ratio 0 Break-Even Point in Dollars = Break-even point in dollars Assume that the company expects sales of each product to decline to 37,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 32% tax rate). Also, assume that any loss before taxes yields a 32% tax benefit. (Round “per unit” answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.) Total HENNA CO. Forecasted Contribution Margin Income Statement Product Product 0 Units Per unit Total $ Per unit T otal $ 16.40 $ $ 9.84 0 $ 6.56 210,240 (210,240) $ 0 0 Sales Variable cost Contribution margin Fixed costs Income before taxes Income taxes (tax benefit) Net income (loss) 0 0 210,240 (210,240) Assume that the company expects sales of each product to increase to 68,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). (Round “per unit” answers to 2 decimal places.) HENNA CO. Forecasted Contribution Margin Income Statement Product T Product O Units Per unit Total S Per unit Total $ 0 $ Product Total 0 $ Contribution margin Net income (loss)