ACCT 521 Connect Plus Homework 6 Solution (Liberty University)

ACCT 521 Connect Plus Homework 6 Solution (Liberty University)


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ACCT 521 Connect Plus Homework 6

Packages-2-Go has two divisions, air express and ground service, that share the common costs of the company's communications network, which are $5,020,000 a year.






 You have the following information about the two divisions and the common communications network

Packages-2-Go has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $5,740,000 a year. 







 You have the following information about the two divisions and the common communications network:






Pacific Hotels operates a centralized call center for the reservation needs of its hotels.






 Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage).






 Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. 






 Due to recent increased competition in the hotel industry, the company has decided that it is necessary to more accurately allocate its costs in order to price its services competitively and profitably. 






 During the most recent period for which data are available, the use of the call center for each hotel group was as follows

Your company has a travel policy that reimburses employees for the “ordinary and necessary” costs of business travel.







 Employees often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. 







 When this happens, an allocation must be made between the business and personal portions of the trip. 







 However, the travel policy is unclear on the allocation method to follow.







 Consider this example. An employee obtained a business-class ticket for $9,590 and traveled the following itinerary:

SVI is a large securities dealer. Last year, the company made 660,000 trades with an average commission of $26.




 Because of the general economic climate, SVI expects trade volume to decline by 9 percent. 




 In addition, employees at a local manufacturing plant have historically constituted 10 percent of SVI’s volume. 




 The plant just closed and all employees have closed their accounts.




 Offsetting these factors is the observation that the average commission per trade is likely to increase by 15 percent because trades are expected to be larger in the coming year

Sanlax, Inc., makes portabel appliances and develops plans using an annual budgeting cycle. 




 For next year, the production budget is 194,000 units.




 Inventories are expected to increase by 20,7000 units

The Casings Plant of Wyoming Machines makes plastics shells for the company’s calculators.





 (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 610,000 calculators.





 The beginning finished goods inventory of shells at the Casings Plant is 80,000 units. 





 However, the target ending finished goods inventory for each year is 25,000 units.





 Each unit (shell) requires 6 ounces of plastic. At the beginning of the year, 210,000 ounces of plastic are in inventory. 





 Management has set a target to have plastic on hand equal to 2 months’ sales requirements.





 Sales and production take place evenly throughout the year.




Westile Company buys plain ceramic tiles and prints different designs on them for souvenir and gift stores. 






 It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales.






 The tiles cost $1.00 each and must be paid for in cash.






 The company has 27,000 tiles in stock.






 Sales estimates, based on contracts received, are as follows for the next six months:





Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $320.






 For each occasion, S2BU receives a 10 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. 






 Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months

Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. 







 The company attempts to make service calls at least once a month to all homes that subscribe to its service.







 It makes more frequent calls during the summer. The number of subscribers also varies with the season.







 The number of subscribers and the average number of calls to each subscriber for the months of interest follow:

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