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Luda [366]
2 years ago
14

Cahalane Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Man

ufacturing costs: Variable manufacturing cost per unit produced:
Direct materials $ 12
Direct labor $ 5
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 4
Fixed selling and administrative expense per year $ 78,000

Year 1 Year 2
Units in beginning inventory 0 1,000
Units produced during the year 9,000 12,000
Units sold during the year 8,000 10,000
Units in ending inventory 1,000 3,000

Which of the following statements is true for Year 2?

A. The amount of fixed manufacturing overhead deferred in inventories is $60,000B. The amount of fixed manufacturing overhead released from inventories is $60,000C. The amount of fixed manufacturing overhead deferred in inventories is $592,000D. The amount of fixed manufacturing overhead released from inventories is $592,000
Business
1 answer:
ankoles [38]2 years ago
8 0

Answer:

A. The amount of fixed overhead deferred in inventories is $60,000

Explanation:

Unit product cost      

                                            Year 1      Year 2  

Direct materials                      $12         $12

Direct labor                              $5        $5  

Variable manufacturing

overhead                                     $5      $5  

Fixed overhead

                                                   $48      $36  

                           ($432,000 ÷ 9,000)   ($432,000 ÷ 12,000)

unit product cost                       $70      $58

Fixed overhead deferred (1,000 × $48)   $48,000  

Fixed overhead released                                             -$48000  

Fixed overhead deferred (3000 × $36)                        $108,000  

Net                                                             $48,000        $60,000

The amount of fixed overhead deferred in inventories is $60,000

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The answer is 1000

Density formula is weight/volume, so the unit should be gram/centimeter^3. To  convert gram/centimeter^3 into kilogram/meter^3, the <span>conversion factors would be:
</span>(gram/centimeter^3) / (kilogram/meter^3)
= (gram/kilogram) /(centimeter^3/meter^3)
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6 0
2 years ago
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Morris is a software engineer for a manufacturer. He wrote a program for the accounting department. During the testing phase, he
Lyrx [107]

Answer:

The principle of the Software Engineering Code of Ethics that Morris has violated is:

the Product principle.

Explanation:

The Product principle requires that Morris' program (product and related modifications) should meet the highest professional standards.  Staying within budget and rationalizing an error as minor are not requirements of the Software Engineering Code of Ethics that Morris subscribed to.

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5 0
1 year ago
Betty and bob are not married but are living together. they have a heated argument and betty hits bob with a baseball bat, causi
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4 0
2 years ago
Exotech has an inventory turn ratio of 60 with $50 million in annual sales, and an average inventory of $250,000. What is Exotec
Goryan [66]

Answer:

$15 million

Explanation:

Data provided in the question:

Inventory turn ratio = 60

Annual sales = $50 million

Average inventory = $250,000

Now,

we know,

Inventory turn ratio  = ( Cost of goods sold ) ÷ ( Average inventory )

thus,

60 = ( Cost of goods sold ) ÷ $250,000

or

Cost of goods sold = 60 × $250,000

or

Cost of goods sold = $15,000,000 or $15 million

8 0
2 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000,
Ugo [173]

Answer:

Multiple choices are:

18.5%

16.7%

34.6%

15.9%

The correct option is the last one,15.9%

Explanation:

The simple rate of return is the annual incremental net savings divided by the initial investment.

The annual incremental net savings is the annual savings recorded from the new process minus annual depreciation charge.

annual savings is $143,000

depreciation charge=cost of new equipment-salvage value of old equipment/useful life of the new equipment

depreciation charge=($414,000-$18,000)/6=$66,000

simple rate of return=$66,000/$414,000=15.9%

8 0
2 years ago
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