Answer:
Manufacturing cost: $
Direct material ($6.50 x 3,200) 20,800
Direct labour ($2.40 x 3,200) 7,680
Manufacturing overhead ($1.10 x 3,200) 3,520
Supervisory salaries 13,600
Depreciation 5,500
Other fixed costs <u>2,200</u>
Total manufacturing cost <u> 53,300</u>
Explanation:
Total manufacturing cost is the aggregate of direct material, direct labour,variable manufacturing overhead and fixed costs. Fixed costs include supervisory salaries, depreciation and other fixed costs. Direct material cost per unit, direct labour cost per unit and manufacturing overhead cost per unit should be multiplied by the budgeted units per month.
Answer: Old machine should be replaced.
Explanation:
The variable manufacturing cost will reduce by:
= 624,000 - 524,000
= $100,000
Over a period of 5 years this will be:
= 100,000 * 5
= $500,000
Selling the old machine would bring in $32,000:
= 500,000 + 32,000
= $532,000
The cost of the new machine would reduce this gross benefit by:
= 532,000 - 455,100
= $76,900
<em>Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought. </em>
Rhashan<span> can used a font like </span>Arial<span>. It is much easier on your eyes than a font that has curls at the end. He needs to very brief and to the point. Business and organizations do not want to publish rambling. Paragraphs longer than eight lines are not good for readability. To make his ideas look organized and to </span>assist<span> busy readers in finding key ideas, </span>Rhashan<span> needs to insert a “talking subhead” roughly every five paragraphs. Talking subheads tell a story. Something similar to newspaper headlines.</span>
Answer:
XX date. Acquisition of land in exchange for treasury stock.
Dr Land $1,550,000
Cr Treasury Stock $1,325,000
Cr Paid in Capital $225,000
Explanation:
Since the corporation uses the cost method, the transaction is recorded at purchase value regardless of current stock price.
treasury stock = 25,000 x $53 = $1,325,000
paid in capital = ($62 - $53) x 25,000 = $225,000
cost of the land = $1,325,000 + $225,000 = $1,550,000
Answer:
$700 billion
Explanation:
Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well. Personal claims and property damage from consumer product safety incidents cost companies more than <u>$700 billion</u> annually.
In the United States, consumers have a high level of right to safety and the regulators have provided industry safety standards for products sold in the U.S. The Consumer Product Safety Commission allows consumers to be able to sue manufacturers and claim huge damages for any breach in standards, the commission can also find such producers liable and hold them accountable for negligence in lack of adherence to quality standards. Personal claims and property damage from consumer product safety incidents cost companies more than __$700_billion_ annually.
