Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows:   ​ Copy Center 1 Copy Center 2 Normal activity (copies) 600,000 400,000 Actual activity (copies) 500,000 440,000 ​ For purposes of performance evaluation, fixed costs allocated to Copy Center 1 are:

Activities or variables within a producing department that provoke the incurrence of support costs are called __________ .

Aqua Corporation had the following income statement for 2018: ​ Sales $30,000 Variable expenses  15,000 Contribution margin $15,000 Fixed expenses   5,000 Operating income $10,000 Required:   a. Calculate the degree of operating leverage. (Round answer to one decimal place.) b. If sales increase by 30 percent, what will the percentage change in operating income be? (Round answer to two decimal places.) c. If sales increase by $6,000, how much will operating income increase?

At a monthly volume of $31,250, a company incurs variable cost of $23,750 and fixed costs of $7,500.Required: Determine each of the following values:   a. Variable cost ratio b. Contribution margin ratio c. Monthly break-even dollar sales volume d. Monthly margin of safety in dollars

A company incurred $80,000 of common fixed costs and $120,000 of common variable costs. These costs are to be allocated to Departments A and B. Data on capacity provided and capacity used are as follows: ​   Capacity Provided Capacity Used Department in Hours in Hours       A 400 320       B 240 320 ​ Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department A are Fixed Variable

Activity-based budgets

Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in sales dollars for Biscuit Company?

In 2018, Samantha’s Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. ​ The annual sales volume required for Samantha’s to have a before-tax income of $18,000 is

Discuss the features of an ideal budgetary process.

Algonquin Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were: X-$10,000; Y-$20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit. ​ What amount of joint costs will be allocated to product X using the net realizable value net realizable value method?