Answer:
$3,927
Explanation:
For the computation of bid price first we need to follow some steps which is shown below:-
Manufacturing overhead rate = Overhead cost ÷ Machine hours
= 45,000 ÷ 100,000
= $0.45
Total manufacturing cost charged to the school
= 2,000 + 400 + (900 × 0.45)
= $2,805
Markup cost = $2,805 × 0.4
= $1,122
Bid price of job = Total manufacturing cost charged to school + Markup cost
= $2,805 + $1,122
= $3,927
Answer:
Load-distance method.
Explanation:
Load-distance method is a technique of making facility location decisions by an organization. In this method, different facility locations are assigned a load-stance value (it is a measure of the weight of the load to be transported and the distance) and the different facilities are evaluated on the basis of this value. The location with the minimum load-distance will have minimum transportation cost; so, this location will be preferred over the other locations.
The first advice I would give Mr. Peterson would be to formalize the transfer. So the first step in this situation would be to contact a good lawyer to see if the transfer of business to your child would be authorized. This is because the transfer of LLCs has rules that may differ from one location to another.
Answer:
Lester Company
The accumulated depreciation amounts for buildings $35,000 and for equipment $60,000 were obtained as the differences between the costs and the book values of the assets. The cost of a long-term asset is usually reduced to its book value by the total amount in the accumulated depreciation account. The accumulated depreciation account shows the progressive amounts set aside annually as a write-off of the asset, showing its use over the period in accordance with the accrual concept and matching principle. The accrual concept and matching principle require cost to be matched to the revenue it helps to generate.
Explanation:
Transferred Assets:
Cost Book Value Difference Explanation
Cash $40,000 $40,000 $0
Accounts Receivable 75,000 68,000 $7,000 (doubtful accounts)
Inventory 50,000 50,000 $0
Land 35,000 35,000 $0
Buildings 160,000 125,000 $35,000 (depreciation)
Equipment 240,000 180,000 $60,000 (depreciation)
Answer:
$10,400 Favorable
Explanation:
The computation of labor efficiency variance for June is shown below:-
For computing the labor efficiency variance for June first we need to find out the standard hours
Standard hours = 0.5 hours per unit × 3,100 units
= 1,550 hours
Now, we will put it into formula
Labor efficiency variance = (Standard hours - Actual hours) × Standard rate
= (1,550 - 510) × $10
= $10,400 Favorable
Therefore for computing the labor efficiency variance for June we simply applied the above formula.
