solve properly all steps and check answer ..with explanantion.. i will give upvote Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the itemsare manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases itsselling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In additionto these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costsshould be included in the product pricing structure.After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected fourcategories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year andthe cost drivers are as follows:Cost CategorySales commissionsPay-per-click/Search engine optimizationCost of online salesCredit and collectionTotal selling costsOrder SizeSmallMediumLargeThe knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted.Commissions are paid on sales to retail outlets but not on online sales. The cost of online sales includes technology infrastructurecosts and the wages of personnel who process the online orders. Jackson believes that the selling costs vary significantly with the sizeof the order. Order sizes are divided into three categories as follows:Retail SalesOnline Sales1 to 10 skeins1 to 10boxes11 to 20 skeinsOver 20 skeins11 to 20 boxesOver 20 boxesAn analysis of the previous year's records produced the following statistics.ItemsRetail sales boxes (12 skeins per box)Online sales, skeinsNumber of retail ordersNumber of onlineSmall6,00096,000655268,175Sales commissionsPay-per-click/Search engine optimizationCost of online salesCredit and collectionTotal cost for all orders of a given sizeUnits (skeins) soldUnit cost per order of a given sizeAmount$814,500453,240158, 20099,900$ 1,525,840$SmallOrder SizeMedium70,50069,0003,265280,525Required:1. Prepare a schedule showing TCC's total selling cost for each order size and the per-skein selling cost within each order size.Note: Round your intermediate calculations and unit cost per order to 2 decimal places.TEXTILE CRAFT COMPANYComputation of Selling CostsBy Order Size and Per Skein Within Each Order SizeCost DriverBoxes of yarn sold to retail storesNumber of online leadsSkeins sold onlineNumber of retail orders0 $Large195,00061,0007,180206,700Medium? Management may want to consider offering discounts for large orders.7 Small orders are preferable to medium sized orders.7 Large orders are preferable to medium sized orders.7 Marketing should be focused on small sized orders.Order SizeTotal271,500226,00011,100755,40010 SLarge$0 $Total000002. An analysis of selling costs shows:Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correctanswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a questionmark will be automatically graded as incorrect. Check my work is not available.

Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…

Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows:

Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4E: For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as...

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Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Pay-per-click/Search engine optimization Cost of online sales Credit…
Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure.After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 829,500 Boxes of yarn sold to retail stores Catalogs 313,000…
Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures,the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. Required:1. Prepare a schedule showing Redwood Company’s total selling cost for each order size and the perskein selling cost within each order size.2. Explain how the analysis of the selling costs for skeins of knitting yarn is likely to impact future pricing and product decisions at Redwood Company.
Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure.After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 829,500 Boxes of yarn sold to retail stores Catalogs 313,000…
Book Hint Print O ferences Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Pay-per-click/Search engine optimization…
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: direct materials, direct labor, manufacturing overhead, and period costs. For each item, indicate the cost category to which it belongs. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Property taxes on the factory building. Production superintendents' salaries. Memory boards and chips used in assembling computers. Depreciation on the factory equipment. Salaries for quality control inspectors. Sales commissions paid to sell laptop computers. Electrical components used in assembling computers. Wages of workers assembling laptop computers. Soldering materials used on factory assembly lines. Salaries for the night security guards for the factory building. Category
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost items 1. Cost of fabric used in T-shirt 2. Wages of shirt makers 3. Cost of new sign in front of retail T-shirt shop 4. Wages of the employee who repair the firm’s sewing machines 5. Cost of electricity used in the sewing department 6. Wages of T-shirts designers and painters 7. Wages of sales personnel 8. Depreciation on sewing machines 9. Rent on the building. Part of the building’s first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost Items 1. Cost of fabric used in T-shirts. 2. Wages of shirtmakers. 3. Cost of new sign in front of retail T-shirt shop. 4. Wages of the employee who repairs the firm's sewing machines. 5. Cost of electricity used in the sewing department. 6. Wages of T-shirt designers and painters. 7. Wages of sales personnel. 8. Depreciation on sewing machines. 9. Rent on the building. Part of the building's first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost Items Variable or Fixed? Period or Product? Administrative? Selling? Manufacturing? Research and Development? Direct material, Direct labor, or Manufacturing overhead? 1. Cost of fabric used in T-shirts. 2. Wages of shirtmakers. 3. Cost of new sign in front of retail T-shirt shop. 4. Wages of the employee who repairs the firm’s sewing machines. 5.…
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.For each item, indicate the cost category to which it belongs. (A,B,C, or D) Item Category 1. Property taxes on the factory building. select the cost category 2. Production superintendents’ salaries. select the cost category 3. Memory boards and chips used in assembling computers. select the cost category 4. Depreciation on the factory equipment. select the cost category 5. Salaries for assembly-line quality control inspectors. select the cost category 6. Sales commissions paid to sell laptop computers. select the cost category 7. Electrical components used in assembling computers. select the…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. Cost Classifications Variable Fixed Period Product Administrative Selling Manufacturing Research and Development Direct material Direct labor Manufacturing overhead Cost Items: Cost of fabric used in T-shirts Wages of shirtmakers Cost of new sign in front of retail T-shirt shop Wages of employee who repairs the firms sewing machines Cost of electricity used in the sewing department Wages of T-shirt designers and painters Wages of sales personnel Depreciation on sewing machines Rent on the building that is used to make and paint T-shirts Cost of daily advertisements in local media Wages of designers who experiment with new fabrics, paints and T-shirt designs Cost of…
A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. Which of the following is a proper classification of this cost? Product cost Prime cost Conversion cost Period cost