Required: Evaluate each of the preceding and determine whether the cost is
a) A product cost or a period cost.
b) Variable or fixed in terms of behavior
c) For the product costss only, whether the cost is properly classified as direct material, direct lab
World Gourmet Coffee Company (WGCC) is a distributor and processor of different blends of coffee.
The company buys coffee beans from around the world and roasts, blends, and packages them for resale.
WGCC currently has 15 different coffees that it offers
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying.
Data for these segments for the year just ended follow.
In addition to the expenses listed above, the company has $95,000 of common fixed expenses.
FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit,
and vegetables. The canned food box (type C) and the perishable food box (type P) have the following
material and labor requirements.
Alberta Gauge Company, Ltd., a small manufacturing company in Calgary, Alberta,
manufactures three types of electrical gauges used in a variety of machinery. For many years the
company has been profitable and has operated at capacity. However, in the la
Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the
automobile industry. The following data have been compiled for the month of June. Conversion activity
occurs uniformly throughout the production process.
Jonathan Macintosh is a highly successful Pennsylvania orchardman who has
formed his own company to produce and package applesauce. Apples can be
stored for several months in cold storage, so applesauce
production is relatively uniform throughout the year
Skinny Dippers, Inc. produces nonfat frozen yogurt.
The product is sold in five-gallon containers, which
have the following price and variable costs.
Budgeted fixed overhead in 20x1, the companys first year of operations,
was $300,000. Planned and actual
Compute the product cost per container of frozen yogurt under ( a ) variable costing and ( b ) absorption costing.
Total variable cost per unit
Prepare a segmented income statement for Countrywide Cable Service, Inc. Use
the contribution format.
Countrywide Cable Service Inc
Segmented Income Statement by Product Lines
Less: Variable expenses
Segment contribution margin
1) Analysis of physical flow of units
WIP, June 1
Units started during June
Total units to account for
Units completed and transferred out June
WIP, June 30
2) Calculation of e
1. Using WGCC's current product-costing system:
Determine the company's predetermined overhead rate using direct-labor cost as the single cost driver.
Budgeted overhead cost
Budgeted labor cost
Determine a new product costs and
Pints of Applesauce
1. Tire costs incurred by Ford Motor Company
2. Sales commissions paid to the sales force of Dell Inc
3. Wood glue consumed in the manufacture of Thomasville furniture
4. Hourly wages of refinery security guards employed by ExxonMobil Corporation
5. The s
From 2005 to 2006, long before bankruptcy and federal aid, US automakers had large amounts
of excess capacity. Then as now, they had enormous fixed costs including factories, machinery,
and workers (with contracts protecting them from layoffs). Counter in
Running head: SWEDEN AND BELIZE
Comparative Economies: Sweden and Belize
Karl Fredell, BS; Jeffrey Lucas, BA; Jeffrey Serpa, BA
Grand Canyon University
March 27, 2013
Type of Box
Estimated sales units
Sale price per 100 boxes
Sales price per box
Estimated sales for the year in dollars
$ 450,000.00 $
Type of Box