Answer:
It is cheaper to buy the seats.
Explanation:
Giving the following information:
The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.
Make in house= [8 + 9 + (9*0.6)]*50,000= $1,120,000
Buy= 21*50,000= $1,050,000
It is cheaper to buy the seats.
Answer:
The amount of cash paid for intrest expense during the year was $ 41.500.
Explanation:
Cash paid for interest expense = bond interest expense + Decrease in premium on bonds payable account
= $ 40,000 + $ 1,500
= $ 41,500
Therefore, the amount of cash paid for intrest expense during the year was $ 41.500.
Answer:
A. $575,000 + $125,000 - $560,000
Explanation:
According to the ending inventory report, cost of sales would be calculated as follow;
Cost of sales = Beginning inventory + Purchase - Ending inventory
Cost of sales = $575,000 + $125,000 - $560,000
Answer:
Yes, she will (total profit of $15,730)
Explanation:
We must determine the future value of Angela house:
future value = present value (1 + appreciation rate)ⁿ
- present value = $98,760
- appreciation rate = 3%
- n= 5
FV = $98,760 (1.03)⁵ = $98,760 x 1.1592740743 = $114,490
now the difference between the future value and the present value = $114,490 - $98.760 = $15,730
