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2 years ago

Holton Company makes three products in a single facility. Data concerning these products follow:

Business

1 answer:

evablogger [386]2 years ago

8 0

Answer:

86,700 minutes

Explanation:

a. Demand on the mixing machine:

Minutes required to produce 3000 units of A (3000 x 26.9) 80700

Minutes required to produce 1000 units of B (1000 x 2) 2000

Minutes required to produce 2000 units of C (2000 x 2) 4000

Total minutes = 86,700 minutes

Therefore, in order to satisfy the demand for all of the products they would need 86,700 minutes of mixing machine time,

but they only have 14,000 minutes available for each month.

This means that they cannot satisfy the demand with the number of minutes that they have available.

b.Optimal production plan:

Product A Product B Product C

Selling price per unit $ 137.10 $ 74.80 $ 167.60

Direct materials $ 59.70 $ 41.70 $ 100.70

Direct labor $ 43.00 $ 13.30 $ 29.50

Variable manufacturing overhead $ 8.20 $ 4.30 $ 13.80

Variable selling cost per unit $ 15.20 $ 3.10 $ 8.50

Total variable cost per unit $ 126.10 $ 62.40 $ 152.50

Contribution margin per unit $ 11.00 $ 12.40 $ 15.10

Mixing minutes per unit 26.90 2.00 2.00

Contribution margin per minute $0.41 $6.20 $7.55

Rank in terms of profitability 3 2 1

Optimal production 223 1,000 2,000

c. The company should be willing to pay $0.41 for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity for Product A.

For Product B the company should be willing to pay $6.20, and $7.55 for Product C.

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Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr

joja [24]

Answer:

Predetermined manufacturing overhead rate= $53,75 per machine hour

Explanation:

Giving the following information:

Order size:

Estimated activity cost= $585,866

Estimated machine hours= 10,900

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 585,866/10,900

Predetermined manufacturing overhead rate= $53,75 per machine hour

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2 years ago

A landlord entered into a 10-year lease of a building with an auctioneer, who planned to use the building itself for a storage a

ArbitrLikvidat [17]

Answer:

$2,000

Explanation:

Usually, the landlord is required to notify the tenant if he/she plans to sell the property, but regardless of who owns the property (the original landlord or a new landlord), the contract terms are valid and must be honored by both the current landlord and the tenant.

The new owner immediately became the new landlord and he/she assumed all the responsibilities stated in the lease contract. Since the lease contract stated that the "lessor (landlord) agreed to maintain all structures on the property in good repair", the new landlord must pay for any necessary repairs.

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2 years ago

E15-9 (L01,3) (Preferred Stock Entries and Dividends) Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred

Dimas [21]

Answer:

(a)

Preferred stock Dividend = ( 10,000 x 100 ) x 8% = $80,000

Cumulative Dividend

Date Dividend for the year Balance

December 31, 2015 $80,0000 $80,000

December 31, 2016 $80,0000 $160,000

December 31, 2017 $80,0000 $240,000

Payable of $240,000 Dividend will be reported on the Balance Sheet.

(b) Dr. Cr.

Preferred Stock (4,000 x $100) $400,000

Common stock ((4000 x 7) x $10) $280,000

Paid-In Capital in excess of Par - Common share $120,000

(c)

Cash ( 4000 x 107 ) $428,000

Preferred Stock (4000 x $100) $400,000

Paid-In Capital in excess of Par - Preferred share $28,000

It will be reported in balance sheet as follow:

Equity $

Preferred Stock 400,000

Paid-In Capital in excess of Par - Preferred share 28,000

Explanation:

(a) Last dividend was paid on December 31, 2014, the subsequent 3 years are outstanding until December 31, 2017, so the total payable dividend is $240,000 which will be reported on Balance sheet.

(b) 4000 preferred shares on par value are converted to 7 common shares each at $10 par value.

(c) Preferred stock issued @ $107 will be reported as Preferred stock of $400,000 and Paid-In Capital in excess of Par - Preferred share of $28,000.

3 0

2 years ago

Valentina recently made a friend from another country who works as a buyer at a large business firm. They get together with a gr

Doss [256]

Answer:

Tactile communication

Explanation:

Options are: "a. kinesic communication b. integrated marketing communication c. paralinguistic d. proxemic communication e. tactile communication"

This type of tactile communication is not common in the United States as a form of greeting among new friends or business associates. Tactile communication is a form of non-verbal communication in which the sender sends the message either by a handshake, kiss or simply by appropriate touching to the receiver. In this case, the friend kissed Valentina this is a form of tactical communication.

7 0

2 years ago

Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $398,000; Costs = $298,000; Other expe

melomori [17]

Answer:

a. Operating Cash flow = 56,025

b. Cash flow to credit = 18,400

c. Cash flow to Stockholder = 5,800

d. There is no addition to Net Working capital if Fixed assets increased by $46,000.

Explanation:

Operating Cash flow = Sales - Total cash Expenses

Operating Cash flow = Sales - ( Costs + Other Expenses + Interest Expense + Taxes )

Operating Cash flow = 398,000 - ( 298,000 + 7,900 + 14,200 + 21,875 )

Operating Cash flow = 398,000 - 341,975

Operating Cash flow = 56,025

Cash flow to credit = Interest paid - Ending Long term debt + Beginning Long term debt

Cash flow to credit = 14,200 + 4200 + 0

Cash flow to credit = 18,400

Cash flow to Stockholder = Dividend payment - New Stock Issued

Cash flow to Stockholder = 11,500 - 5,700

Cash flow to Stockholder = 5,800

There is no addition to Net Working capital if Fixed assets increased by $46,000. As Fixed asset are not the part on Working capital. Working capital only account for the current assets and current liabilities.

Net Working Capital = Current Assets - Current Liabilities

Not: The requirement were missing in the question so the answer is made according to original question which is attached as a picture with this answer.

5 0

2 years ago