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2 years ago

A direct cost is a cost that is:

Business

1 answer:

kap26 [50]2 years ago

4 0

Answer:

(D) Traceable to a single cost object.

Explanation:

A direct cost -

It is refers to the amount which is directly linked to the production of the specific products and services , is referred to as the direct cost .

The direct cost is variable in nature .

The direct cost can be traced to the cost object , that can be department , product or service.

Hence, from the given information of the question,

The correct option is D.

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Leelanau Corporation uses a job-order costing system. The following data are for last year: Work in process beginning balance $

ratelena [41]

Answer:

The correct answer is $138,500.

Explanation:

According to the scenario, the given data are as follows:

WIP beginning = $10,500

WIP ending = $19,000

Cost of goods manufactured = $323,000

Direct material = $115,000

Direct labor = $78,000

So, we can calculate the amount of overhead by using following formula:

Overheads = Total manufacturing costs - Direct materials - Direct labor

Where, Total manufacturing cost = Cost of goods manufactured + Ending WIP - Beginning WIP

= $323,000 + $19,000 - $10,500

= $331,500

So, by putting the value in the formula:

Overheads = $331,500 - $115,000 - $78,000

= $138,500

Hence, the amount of overhead is $138,500.

3 0

2 years ago

Vignana corporation manufactures and sells hand-painted clay figurines of popular sports heroes. shown below are some of the cos

SVETLANKA909090 [29]

Answer:

$175,000

Explanation:

Conversion costs are production costs that must be incurred in order to change raw materials into products.

Therefore, we have:

Total of the conversion costs = Cost of clay used in production + wages paid to the workers who paint the figurines = $76,000 + $99,000 = $175,000

8 0

2 years ago

Disney positions its brand as “a magical world where your dreams come true.” In its brand positioning, what goal does Disney ach

mars1129 [50]

Answer:

By mentioning to be "a magical world where your dreams come true", Disney seeks to position its brand by appealing to the illusion of its youngest consumers, who believe and enjoy that magical world as they consider it to be real. In turn, it also targets a more adult audience, the parents of those children and even young adults who remember their childhood, and seek through Disney to return to that magical world far from the problems of daily life. Thus, through empathy and the generation of nostalgia, Disney captures a market that is receptive to its products due to the sentimentality they imply.

8 0

2 years ago

Halverstein Company's outstanding stock consists of 8,050 shares of cumulative 5% preferred stock with a $10 par value and 3,450

Licemer1 [7]

Answer:

$6,900 to preference shareholders

Explanation:

The computation of the amount of dividends paid to preferred and common shareholders in Year 2 is shown below:

The Preference dividend is

= 8,050 shares × $10 × 5%

= $4,025

And, since the preference dividend is cumulative plus the in year 1 there is no dividend paid and in year 2 the dividend amount given is $6,900

But the total value is

= $4,025 + $4,025

= $8,050

So the total amount i.e $6,900 is paid to preferred shareholders only

3 0

2 years ago

A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec

Orlov [11]

Answer:

Explanation:

Last year Current year

Selling Price 10 10

Varaible Price 5 6

Contribution Margin 5 4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method : first In first out system

Fix Cost = 86000

contribution from opening units(6000*5) = 30000

Remaining Fix cost that should be Covered from

current year products = 56000

Units to be sold for break-even ( 56000/4) = 14000

so we have break even units 6000+14000 = 20000

Fix cost = -86000

Opening 6000*5 = 30000

Current 14000*4 = 56000

Profit = 0

Break Even using LIFO method : Last in first out

Fix Cost = 86000

Break even = Fix Cost / Contribution margin

Break even = 86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0

2 years ago