5) An international company is producing $50 widgets at a cost of $50,000 and is selling

CHEGG: Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows

Ksenya-84 [330]

Answer:

Total cash disbursement= $41,920

Explanation:

Giving the following information:

Number of units= 2,200

Variable selling and administrative expense= $4.50 per unit.

Budgeted fixed selling and administrative expense= $35,720 per month (depreciation of $3,700 per month)

We need to calculate the cash disbursements for selling and administrative.

Depreciation is not a cash expense.

Cash disbursement Selling and Administrative:

Total variable cost= 4.5*2,200= 9,900

Total fixed cost= (35,720 - 3,700)= 32,020

Total cash disbursement= $41,920

6 0

1 year ago

The core revenue principle states that

Nastasia [14]

Answer:

B

Explanation:

Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services.

8 0

2 years ago

Mikes Inc. has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.85 Direct labor $ 3.60 Var

marshall27 [118]

Answer:

Marginal cost: $13.70

Missing question:

Additional cost from increasing their output by one unit.

Explanation:

The company will inccur only the variable cost as the fixed cost are within the relevant range:

Direct materials $ 6.85

Direct labor $ 3.60

Variable manufacturing overhead $ 1.25

Sales commissions $ 1.50

Variable administrative expense $ 0.50

Total variable cost: $13.70

producing an additional unit will genrate marginal cost for $13.70

4 0

2 years ago

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have

Korolek [52]

Answer:

a. Alternative A Break-even point is 8,000 units Alternative B Break-even point is 7,500 units

b. Same profit with both alternatives at 10,000 units

c. Alternative A would have higher profit with a demmand of 12,000 units

Explanation:

a. FC/CMGu=BP

being:

FC= fixed costs

CMGu=contribution margin per unit

BP= Break even point

CMGu is the difference between price of sale and variable cost (per unit)

Alt. A Break-even point is $40,000/$5=8,000 UNITS

Alt. B Break-even point is $30,000/$4=7,500 UNITS

b. At 10,000 units both alternatives have the same profit

Alt. a.

Revenues= $150,000

Variable cost= $-100,000

Fixes Costs= $-40,000

------------------------------------

profit $10,000

Alt. b.

Revenues= $150,000

Variable cost= $-110,000

Fixes Costs= $-30,000

------------------------------------

profit $10,000

c. sales for 12,000 units

Alt. a.

Revenues= $180,000

Variable cost= $-120,000

Fixes Costs= $-40,000

------------------------------------

profit $20,000

Alt. b.

Revenues= $180,000

Variable cost= $-132,000

Fixes Costs= $-30,000

------------------------------------

profit $18,000

7 0

2 years ago

Read 2 more answers

The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $25,750 Balance per

stiv31 [10]

Answer:

Adjusted balance per bank reconciliation $ 24,295

Explanation:

Computation of adjusted balance per bank reconciliation

Balance per bank statement $ 25,750

Add: Deposits in transit $ 2,300

Less: Outstanding checks $ ( 3,755)

Adjusted balance per bank statement $ 24,295

Balance per cash book $ 19,140

Less: Bank Service Charges $ ( 45)

Add: Note collected by bank $ 5,200

Adjusted balance per cash book $ 24,295

The deposits in transit and the outstanding checks have not been incorporated in the bank statement so adjusted to the bank statement balance

The bank service charges and the direct collection by the bank of the note receivable have not been incorporated in the cash book hence adjusted.

6 0

2 years ago