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I have 3 Accounting Problems. The site is not letting me upload all of the information that you need. I need to finish sending the last part of Problem 3-25. I also have to upload the Assignment Template.
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preparation……..
QB
PROBLEM 2-19 Contribution Format versus Traditional Income Statement [LO 2-6]
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail
level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick’s Pianos, Inc.,
sells the pianos to its customers at an average price of $3,125 each. The selling and administrative
costs that the company incurs in a typical month are presented below:
58
Chapter 2
e
Costs
Cost Formula
Selling:
Advertising
$700 ner month
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ντεμισι
Costs
Cost Formula
QB
Selling:
Advertising
Sales salaries and commissions
Delivery of pianos to customers
Utilities..
Depreciation of sales facilities
Administrative:
Executive salaries.
Insurance.
Clerical
Depreciation of office equipment…..
$700 per month
$950 per month, plus 8% of sales
$30 per piano sold
$350 per month
$800 per month
$2,500 per month
$400 per month
$1,000 per month, plus $20 per piano sold
$300 per month
During August, Marwick’s Pianos, Inc., sold and delivered 40 pianos.
Required:
1. Prepare an income statement for Marwick’s Pianos, Inc., for August. Use the traditional for-
mat, with costs organized by function.
2. Redo requirement 1 above, this time using the contribution format, with costs organized by
behavior. Show costs and revenues on both a total and a per unit basis down through contribu-
tion margin.
3. Refer to the income statement you prepared in requirement 2 above. Why might it be mislead-
ing to show the fixed costs on a per unit basis?
e
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PROBLEM 2-20 High-Low Method; Predicting Cost [LO 2-4, LO 2-5]
Nova Company’s total overhead cost at various levels of activity are presented below:
ΣΟ
Total
Overhead Cost
Month
Machine-Hours
April..
May
June
July
70,000
60,000
80,000
90,000
$198.000
$174,000
$222,000
$246,000
Assume that the total overhead cost above consists of utilities, supervisory salaries, and main-
tenance. The breakdown of these costs at the 60,000 machine-hour level of activity is:
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
$ 48,000
21,000
105,000
$174,000
e
Nova Company’s management wants to break down the maintenance cost into its variable and
fixed cost elements.
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to
do this, it may be helpful to first determine how much of the $246,000 consisted of utilities
၁
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F C https://viewer.gcu.edu/vy Ghkp
Apps Student Portal | Main 0, Mail – Dawn.Amato@
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=
April.
May
June
July
70,000
60,000
80,000
90,000
$198,000
$174,000
$222,000
$246,000
QB
Assume that the total overhead cost above consists of utilities, supervisory salaries, and main-
tenance. The breakdown of these costs at the 60,000 machine-hour level of activity is:
Utilities (variable)
Supervisory salaries (fixed).
Maintenance (mixed)
Total overhead cost
$ 48,000
21,000
105,000
$174,000
Nova Company’s management wants to break down the maintenance cost into its variable and
fixed cost elements.
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to
do this, it may be helpful to first determine how much of the $246,000 consisted of utilities
and supervisory salaries. Think about the behavior of variable and fixed costs!)
2. Using the high-low method, estimate a cost formula for maintenance.
3. Express the company’s total overhead cost in the linear equation form Y = a +bX.
4. What total overhead cost would you expect to be incurred at an activity level of 75,000
machine-hours?
с
download.htm
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х
© Log In | LoudCloud Syst x
Grand Canyon Universitx
6 managerial accounting X
Grand Canyon Universi. X
managerial_accounting X
+
c https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 07 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking Nei
Jostens Yearbook Av
V Venmo Welcome Da
PowerTeacher
Pandora
141 %
135 of 640
PROBLEM 3-25 Changes in Fixed and Variable Expenses; Break-Even and Target Profit Analysis
[LO3-4, LO3-5, L03-6]
Neptune Company produces toys and other items for use in beach and resort areas. A small, inflat-
able toy has come onto the market that the company is anxious to produce and sell. The new toy
will sell for $3 per unit. Enough capacity exists in the company’s plant to produce 16,000 units of
the toy each month. Variable expenses to manufacture and sell one unit would be $1.25, and fixed
expenses associated with the toy would total $35,000 per month.
The company’s Marketing Department predicts that demand for the new toy will exceed the
16,000 units that the company is able to produce. Additional manufacturing space can be rented
from another company at a fixed expense of $1,000 per month. Variable expenses in the rented
facility would total 110 por unit due to somewhat loc officient onarntion than in the main plant
Purchase answer to see full
attachment
x
Cost Behavior | Loudci
х
Grand Canyon Universii X
managerial_accounting X
Grand Canyon Universi x
managerial_accounting X
+
0
Х
D
→ e • https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Ave
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
83 of 640
Q
C
=
preparation……..
QB
PROBLEM 2-19 Contribution Format versus Traditional Income Statement [LO 2-6]
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail
level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick’s Pianos, Inc.,
sells the pianos to its customers at an average price of $3,125 each. The selling and administrative
costs that the company incurs in a typical month are presented below:
58
Chapter 2
e
Costs
Cost Formula
Selling:
Advertising
$700 ner month
download.htm
Show all
X
1
e
4)
1:40 PM
10/31/2018
Q
Student Portal | Main
X
Log In | LoudCloud Syst X
Grand Canyon Universii X
managerial_accounting X
Grand Canyon Universii x
6 managerial_accounting X
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
D
:
* Apps Student Portal | Main 04 Mail – Dawn.Amato@
MInbox – liveoakcheer
Online Banking Neic
Jostens Yearbook Ave
V Venmo Welcome Da
P PowerTeacher
P Pandora Internet Rad
141 %
X
84 of 640
Q
C
=
ντεμισι
Costs
Cost Formula
QB
Selling:
Advertising
Sales salaries and commissions
Delivery of pianos to customers
Utilities..
Depreciation of sales facilities
Administrative:
Executive salaries.
Insurance.
Clerical
Depreciation of office equipment…..
$700 per month
$950 per month, plus 8% of sales
$30 per piano sold
$350 per month
$800 per month
$2,500 per month
$400 per month
$1,000 per month, plus $20 per piano sold
$300 per month
During August, Marwick’s Pianos, Inc., sold and delivered 40 pianos.
Required:
1. Prepare an income statement for Marwick’s Pianos, Inc., for August. Use the traditional for-
mat, with costs organized by function.
2. Redo requirement 1 above, this time using the contribution format, with costs organized by
behavior. Show costs and revenues on both a total and a per unit basis down through contribu-
tion margin.
3. Refer to the income statement you prepared in requirement 2 above. Why might it be mislead-
ing to show the fixed costs on a per unit basis?
e
၁
download.htm
Show all
X
1
e
□ 4)
3:17 PM
10/31/2018
Q
Student Portal | Main
X
Log In | LoudCloud Syst X
Grand Canyon Universitx
managerial_accounting X
Grand Canyon Universi x
managerial_accounting X
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
D
:
* Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Nei
Jostens Yearbook Ave
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
141 %
X
84 of 640
Q
C
=
PROBLEM 2-20 High-Low Method; Predicting Cost [LO 2-4, LO 2-5]
Nova Company’s total overhead cost at various levels of activity are presented below:
ΣΟ
Total
Overhead Cost
Month
Machine-Hours
April..
May
June
July
70,000
60,000
80,000
90,000
$198.000
$174,000
$222,000
$246,000
Assume that the total overhead cost above consists of utilities, supervisory salaries, and main-
tenance. The breakdown of these costs at the 60,000 machine-hour level of activity is:
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
$ 48,000
21,000
105,000
$174,000
e
Nova Company’s management wants to break down the maintenance cost into its variable and
fixed cost elements.
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to
do this, it may be helpful to first determine how much of the $246,000 consisted of utilities
၁
download.htm
Show all
X
1
e
4)
3:18 PM
10/31/2018
Q
Student Portal | Main
х
Log In | Loud Cloud Sysi X
Grand Canyon Universitx
6 managerial_accounting X
Grand Canyon Universit X
6 managerial_accounting X
+
X
0
:
F C https://viewer.gcu.edu/vy Ghkp
Apps Student Portal | Main 0, Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Nei
Jostens Yearbook Av
V Venmo Welcome D
P PowerTeacher
P Pandora Internet Rad
+
141 %
X
1
84 of 640
Q
=
April.
May
June
July
70,000
60,000
80,000
90,000
$198,000
$174,000
$222,000
$246,000
QB
Assume that the total overhead cost above consists of utilities, supervisory salaries, and main-
tenance. The breakdown of these costs at the 60,000 machine-hour level of activity is:
Utilities (variable)
Supervisory salaries (fixed).
Maintenance (mixed)
Total overhead cost
$ 48,000
21,000
105,000
$174,000
Nova Company’s management wants to break down the maintenance cost into its variable and
fixed cost elements.
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: to
do this, it may be helpful to first determine how much of the $246,000 consisted of utilities
and supervisory salaries. Think about the behavior of variable and fixed costs!)
2. Using the high-low method, estimate a cost formula for maintenance.
3. Express the company’s total overhead cost in the linear equation form Y = a +bX.
4. What total overhead cost would you expect to be incurred at an activity level of 75,000
machine-hours?
с
download.htm
Show all
х
Student Portal | Main
х
© Log In | LoudCloud Syst x
Grand Canyon Universitx
6 managerial accounting X
Grand Canyon Universi. X
managerial_accounting X
+
c https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 07 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking Nei
Jostens Yearbook Av
V Venmo Welcome Da
PowerTeacher
Pandora
141 %
135 of 640
PROBLEM 3-25 Changes in Fixed and Variable Expenses; Break-Even and Target Profit Analysis
[LO3-4, LO3-5, L03-6]
Neptune Company produces toys and other items for use in beach and resort areas. A small, inflat-
able toy has come onto the market that the company is anxious to produce and sell. The new toy
will sell for $3 per unit. Enough capacity exists in the company’s plant to produce 16,000 units of
the toy each month. Variable expenses to manufacture and sell one unit would be $1.25, and fixed
expenses associated with the toy would total $35,000 per month.
The company’s Marketing Department predicts that demand for the new toy will exceed the
16,000 units that the company is able to produce. Additional manufacturing space can be rented
from another company at a fixed expense of $1,000 per month. Variable expenses in the rented
facility would total 110 por unit due to somewhat loc officient onarntion than in the main plant
Purchase answer to see full
attachment
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