Posted: November 10th, 2022

Logan and Phillips, an accounting firm, provides consulting and tax planning services. A recent analysis

1. (multiple choice)Logan and Phillips, an accounting firm, provides consulting and tax planning services. A recent analysis found that 55% of the billable hours to clients resulted from tax planning and for many years, the firm`s total administrative e cost (currently $270,000) has been allocated to services on this basis.The firm, contemplating a change to activity based costing has identified three components of administrative cost, as follows:Staff support 200,000In-house computing charges 50,000Misc. office costs 20,000Total 270,000A recent analysis of support staff found a strong correlation with the number of clients served. In contrast, in-house computing and misc. office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting clients served totaled 35% of the total client transactions.IfLogan and Phillipsswitched firm its current accounting method to an activity based costing system, the amount of admin cost chargeable to consulting services would:a- Decrease by 32,500b- Increase by 32,000c- Decrease by 59,500d- Othere- Change but amount cannot be calculated with present info2, (Multiple choice)The following data relate toABC Corporation for the year just ended:Sales revenue: 750,000Cost of goods sold:Variable portion: 370,000Fixed portion: 110,000Variable selling and administrative: 50,000Fixed selling and administrative: 75,000Which of the following statements is correct?A. ABC's variable-costing income statement would reveal a gross margin of $270,000B. ABC's variable-costing income statement would reveal a contribution margin of $330,000C. ABC's absorption-costing income statement would reveal a contribution margin of $330,000D. ABC's absorption-costing income statement would reveal a gross margin of $330,000E. ABC's absorption-costing income statement would reveal a gross margin of $145,0003. Seneca Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 7 board feet of hardwood in the finished product. In addition, 1.5 board feet of scrap lumber is normally left from the production of one box. Hardwood costs $5.00 per board foot, plus $1.20 in transportation charges per board foot.Question: Compute the standard direct-material cost of a jewelry box.4. Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. These following standards have been set by the production-engineering staff and the controller.Direct labor: Direct material:Quantity, .25 hour Quantity, 4 kilogramsRate, $12 per hour Price, $0.60 per kilogramActual material purchases amounted to 240,000 kilograms at $0.62 per kilogram. Actual costs incurred in the production of 50,000 units were as follows:Direct labor: $158,600 for 13,000 hoursDirect material: $130,200 for 210,000 kilogramsBuild a spreadsheet:Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the standard direct labor rate is $14 per hour, and the standard direct-material price is $0.59 per kilogram.5. Boundaries, a chain of retail stores, sell books and music CDs. Condensed monthly income data are presented in the following table for November 20X6. (ignore income taxes)Downtown store Mall store TotalSales $240,000- $360,000- $600,000- less: variable expenses $96,000= $252,000= $348,000= Contribution margin $144,000- $108,000- $252,000-less: fixed expenses $60,000= $120,000= $180,000= Operating income $84,000 ($12,000) $72,000 Additional information: Management estimates that closing the mall store would result in a 10% decrease in downtown store sales, while closing the downtown store would not affect mall store sales. one-fourth of each store's fixed expenses would continue through December 31, 20x7, if either store were closed.Build a spreadsheet: Construct an excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following information changes: the downtown store’s sales amounted to $235,000, and its variable expenses were $90,000.

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