Entries by mary WAMBUGU

What is the difference between a cost center and a profit center? Give an answer that demonstrates what critical element distinguishes the profit center from the cost center.

Question 1.) What is the difference between a cost center and a profit center? Give an answer that demonstrates what critical element distinguishes the profit center from the cost center. 2.) Describe the difference between a centralized and a decentralized management style. 3.) What is the difference between traceable costs and common costs? 4.) What are […]

 

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Ocean City Kite Company manufactures & sells kites for $6.00 each. The variable cost per kite is $3.00 with the current annual sales volume of 100,000 kites.

1.)                    Ocean City Kite Company manufactures & sells kites for $6.00 each. The variable cost per kite is $3.00 with the current annual sales volume of 100,000 kites. This volume is currently Ocean City Kite’s breaking even point. Use this information to determine the dollar amount of Ocean City Kite Company’s fixed costs. (Round dollar value […]

 

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Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead.

Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data: Budgeted output units 30,000 units Budgeted machine-hours 10,000 hours Budgeted variable manufacturing overhead costs for 30,000 units $324,000 Actual output units produced 44,000 units Actual machine-hours used 14,400 hours Actual […]

 

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Odilon Company makes a household appliance with model number X500. The goal for 2019 is to reduce direct materials usage per unit.

Question Odilon Company makes a household appliance with model number X500. The goal for 2019 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from […]

 

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