Answer:
Total cost= $3,595
Explanation:
Giving the following information:
Estimated fixed overehad= $155,000
Estimated variable manufacturing overhead= $3.40 per machine-hour
Estimated machine-hours= 50,000
Job A881:
Total machine-hours 100
Direct materials $645
Direct labor cost $2,300
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (155,000/50,000) + 3.4
Estimated manufacturing overhead rate= $6.5
Total cost= direct material + direct labor + allocated overhead
Total cost= 645 + 2,300 + (6.5*100)
Total cost= $3,595
Answer:
Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.
Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:
Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1
If the contribution per unit has been decreased the breakeven will rise.
Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.
Option 3 is 100% right because equation 1 is
Breakeven Point=Fixed Cost/ Contribution per unit
Which says
If the contribution per unit has been decreased the breakeven will rise.
Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases
which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.
Answer:1 is construction 2 is design/pre-construction 3 maintenace/operations 4 construction 5 design/pre-construction
Explanation:
i got them all right
Answer:
cash 1,469 debit
common stock 1 credit
additional paid-in 1,468 credit
--to record issuance of shares in exchange of cash--
Explanation:
We are given the fact that total par value of the shares is $1
thus, the remained will be additional paid-in excess of Common stock.
We debit the cash received as it is an asset
Then, we credit both, common stock and additional paid-in excess of Common Stock as they are equity accounts.
Answer:
The book value of patents should be reported at: $336,000.
Explanation:
Under U.S GAAP, R&D is not permitted to capitalized, thus R&D expenses incurred in the period is not relevant in calculation the book value of patent. On the other hand, successful ligation costs are allowed to be capitalized.
We have the book value of patents = Book value at opening of 2020 + Cost of successful patent infringement suit at 1st December 2020 - amortization of patents in the period of the year 2020;
where: Amortization of patents in the period = 12 months of book value at opening of 2020 amortization + 1 month of Cost of successful patent infringement suit = 288,000/ ( 8 x 12) x 12 + 85,000/( 1 + 7 x 12) x 1 = 37,000 ( as amortization is distributed equally on remaining useful life ( in months))
=> The book value at the end of 2020 = 288,000 + 85,000 - 37,000 = $336,000
