Answer:
Cutting = $10.99 per machine hour
Finishing= $15.28 per direct labour hours.
Explanation:
The question requests the predetermined overhead rate for Cutting department and Finishing department
Step 1: What is the formula for the pre-determined overhead rate
For the Cutting Department
Predetermined Overhead rate= The total fixed manufacturing Overhead/ Total Machine Hours +Variable Manufacturing Overhead rate per machine hour.
= $390,000/$43,400) + $2
= $10.99 per machine hour
For the Finishing Department
Predetermined Overhead rate= The total fixed manufacturing Overhead/ Total Labour Hours +Variable Manufacturing Overhead rate per machine hour.
= $496,000/43,000) + $3.75
= $15.28 per direct labour hours.
Answer:
Explanation:
Firs, find the markup amount in dollars;
Markup amount = Cost * markup rate
Cost = $22
markup rate = 30% or 0.30 as a decimal
Markup amount = 0.30*22 = $6.6
Next, find the retail price using the markup amount calculated above;
Retail Price = Markup amount + cost
Retail price = $6.6 +$22
= $28.6
Therefore, the sneakers retail price is $28.6
This is a bad move. You should work on getting a high credit score on one card not multiple.
Answer:
A sunk cost is the correct answer to this question.
Explanation:
Sunk cost:- Sunk costs are those expenses that have been accumulated in the past and are thus in some way unrelated to judgment-making.
In the question referred to above, the company has already made $14 to produce. This cost will be inconsequential even if the company makes the units as it is or procedures them further.
As a result, $14 is a sunk expense.
Other options are incorrect because they are not related to the given scenario.
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%