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2 years ago

Denton Company manufactures and sells a single product. Cost data for the product are given below:

Business

1 answer:

marissa [1.9K]2 years ago

6 0

Answer:

1. The unit product cost under absorption costing and variable costing.

Product Cost : Absorption Costing = $23,44

Product Cost : Variable Costing = $19.00

2. Contribution format variable costing income statements for July and August.

July August

Sales 1,196,000 1,612,000

Less Cost of Sales : (437,000) (513,000)

Opening Stock 0 76,000

Add Production 513,000 513,000

Less Closing Stock (76,000) (76,000)

Contribution 759,000 1,099,000

Less Expenses :

Selling and administrative expenses

Variable : (23,000) (21,000)

Fixed : (169,000) (169,000)

Net operating income 567,000 909,000

3. Reconcile the variable costing and absorption costing net operating income

July August

Absorption costing net operating income $584,760 $891,240

Add Fixed Costs in Opening Inventory $17,760

Less Fixed Costs in Closing Inventory ($17,760)

Variable costing net operating income $567,000 $909,000

Explanation:

Product Cost : Absorption Costing = All Manufacturing Costs (Fixed and Variable)

= $5+$11+$3+($120,000/27,000)

= $5+$11+$3+$4.44

= $23,44

Product Cost : Variable Costing = Variable Manufacturing Costs

= $5+$11+$3

= $19.00

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Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.0

anyanavicka [17]

Answer:

WACC is 9.26%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of common share x Weightage of common share ) + ( Cost of Preferred share x Weightage of Preferred share ) + ( Cost of debt x Weightage of debt )

Cost of debt is already given as after tax cost of debt.

WACC = ( 12.75% x 45% ) + ( 7.5% x 15% ) + ( 6% x 40% )

WACC = 5.7375% + 1.125% + 2.4% = 9.2625 % = 9.26%

4 0

2 years ago

Spiros is a member of the production design team on a science fiction film called The Future Begins Yesterday. It is a big budge

LiRa [457]

Answer:

A. make Spiros responsible for sourcing wall hangings and window treatments only

Explanation:

Process loss can be said to be an action or deficiency in performance by an individual that prevents a team or group from reaching its potential or achieving its goal within a stipulated time.

The two main factors that contribute to process loss are:

i) Coordination loss: Here, there is too much wait time among all members of the group. Members must coordinate their individual tasks and that of other group members. Too much time is lost here because individuals efficiency differs.

ii) Motivational loss: This happens when individuals of a grouo fail to work as hard as they should. Some individuals may tend to put lesser efforts than their team members, and this leads to loss of team effectiveness in the given task and it affects the results of the group.

Here, Spiro's problem is related to motivational loss, as his efforts do not match that of his teammates'.

There are steps used in addressing process loss.

The best way for Marsha to address spiros' behavior is to make Spiros's task more discrete and identifiable, this involves making Spiro solo responsible for sourcing wall hangings and window treatments only. This will ensure Spiro does not depend on other teammates and he has a solo responsibility which he must fulfill.

8 0

2 years ago

The last dividend on Spirex Corporation's common stock was $4.00, and the expected growth rate is 10 percent. If you require a r

grandymaker [24]

Answer:

$44

Explanation:

Data provided in the question:

Dividend on Spirex Corporation's common stock = $4.00

Expected growth rate, g = 10%

Required rate of return, r = 20%

Now,

Price willing to pay = $\frac{\textup{D1}}{\textup{r - g}}$

here,

D1 = dividend at end of year

D1 = $4 × (1 + r )

D1 = $4 × ( 1 + 0.1 )

D1 = $4.4

Thus,

Price willing to pay = $\frac{\textup{4.4}}{\textup{0.2 - 0.1}}$

Price willing to pay = $44

4 0

2 years ago

The following budget information is available for the HD Sales Company (HDC) for January: Sales $ 320,000 Freight out $ .25 per

Mamont248 [21]

Answer:

The total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

Explanation:

Computation of total budgeted selling and administrative expenses in the January pro forma income statement is shown below:

= Freight out + Sales & Admin Salaries + Advertising + Lease on Sales building + Miscellaneous selling expenses

where,

Freight out = $0.25 × 20,000 units = $5,000

Sales & Admin Salaries = 40,000 + 2% of $320,000 = $46,400

So,

The total budgeted selling and administrative expenses is

= $5,000 + $46,400 + $12,000 + $45,000 + $5,000

= $113,400

Since depreciation part is not be considered because it is a non cash expense so we don't include the depreciation cost in computation part.

Hence, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

5 0

2 years ago

A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts ha

Gnoma [55]

Answer:

1)They would prefer to make shorts as contribution margin per unit is higher for shorts

Explanation:

Step 1. Given information.

Sales price shirts is $24

Variable costs shirts is $10

Sales price shorts $32

Variable costs shorts $17

Step 2. Formulas needed to solve the exercise

Contribution margin = sales price - variable cost

Step 3. Calculation.

Contribution margin shirts = 24 - 10 = 14

Contribution margin shorts = 32 - 17 = 15

Step 4. Solution.

<h2>Contribution margin shorts > Contribution margin shirts</h2>

6 0

2 years ago