Salem Telephone Company Case Study 1. Variable Expenses with respect to revenue hours: Power expense, hourly personnel salaries expense. Fixed expenses with respect to revenue hours: Rent, custodial services, computer leases, maintenance, depreciation of computer equipment and office equipment and fixtures, operations salaried staff, systems development and maintenance, administration, and sales, sales promotions, corporate services. 2. Units: dollars per hour January February March Power
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Salem Telephone Co Case Study #2 Overview: Salem Telephone Company (STC) is a telephone company who is regulated by the state Public Service Commission. The state Public Service Commission encouraged public utilities under its jurisdiction to seek new sources of revenue and profits. This would reduce the need for rate increase that higher costs would otherwise bring. The company formed an agreement with the state Public Service Commission to create a subsidiary. Thus Salem Data Services (SDS)
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Cost/Revenue Hr. | $24.04/hr. | $22.28/hr. | $22.39/hr. | 3) Contribution margin income statement for Salem Data Services Assumption: Intra company usage=205 hours; Commercial usage for March=138 hours Revenue Hours Intra company: 205 Commercial: 138 Total Revenue Hours: 343 Salem Data Services Income Statement | | Revenues | | Intra company sales | $82,000 | Commercial Sales | 110,400 | TOTAL REVENUE | $192,400 | | |
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Salem Telephone Company Case No. 9-104-086 Group #4 John Pipkin Resean Crawley Chan Srinivasa Brian Hamilton Question 1 The fixed cost associated with Salem Data Services are: Item Expenses Space cost: Rent Custodial services Equipment costs Computer leases Maintenance Depreciation: Computer equipment Office equipment and fixtures Wages and salaries Operations: salaried staff Systems development and maintenance Administration Sales Sales promotion Corporate services Total January February March
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Case Study #1. Salem Telephone Company 1. Variable expenses: Power (the more hours sold, the more energy consumed) The hourly personnel (operations) works only when the computers are in operation Fixed expenses: The rent has to be paid despite any level of production ($8,000 monthly) The custodial services depend on Salem Telephone's estimated space, they are independent from the revenue of the Company The computer leases were acquired to run the business (before it was actually started
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5. Would you treat the new machine as a separate cost center or as a part of the main test room? Bridgeton Industries: Automotive Component & Fabrication Plant 1. The official overhead allocation rate used in the 1987 model year strategy study at the Automotive Component and Fabrication Plant (ACF) was 435% of direct labor cost. Calculate the overhead allocation rate using the 1987 model year budget. Why do you get different numbers? 2. Calculate the overhead allocation rate for each
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Case Study Salem Telephone Company Name: Due Date: 1. With respect to revenue hours, power costs and hourly personnel wages are variable expenses, because the cost per hour is constant for these two expenses. Rent, custodial services, computer leases, maintenance, depreciation of computer equipment, office equipment and fixtures, operations salaried staff, systems development and maintenance, administration, sales, sales promotions, and corporate services are fixed expenses. (Sales
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Bridgett Jamison Managerial Accounting Salem Telephone Company Case Study 1) Variable Expenses with respect to revenue hours are the power expense and the hourly personnel salaries expense. Fixed expenses with respect to revenue hours are rent, custodial services, computer leases, maintenance, depreciation of computer equipment and office equipment and fixtures, operations salaried staff, systems development and maintenance, administration, and sales, sales promotions, corporate services.
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Table of Contents Introduction Section I Forward .. ………………………………………………………………………………….….4 Welcome……………………………………………….…………………………………….....5 Mission & Vision Statements …………………………………………………………………6 Goals and Objectives ………………………………………………………………………....7 The Department of Housing and Residence Life Section II Organizational Flowchart………………………………………………………………….…..9 Residence Life Staff ………………………………………………………………………....10
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Project how this type of competition, if widespread, would impact the overall health of the economy. In the mid 1970's AT&T ,a provider of Local and long distance telephone service, had either destroyed or bought most of the company's competition, becoming the country's largest and most influential telecommunications company (AT&T Breakup, January 2015). Thus creating a government regulated monopoly. The FCC was created to monitor the actions of AT&T. In 1974 The Antitrust Division of
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