Answer:
(a) $9,000 per employee
(b) $252,000; $198,000
Explanation:
Given that,
Fringe benefits cost during 2018 = $450,000
Employees assigned to division A = 28
Employees assigned to division B = 22
(a) Allocation rate:
= Total cost to be allocated ÷ Cost driver
= $450,000 ÷ 50
= $9,000 per employee
(b) Cost assigned to A:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 28
= $252,000
Cost assigned to B:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 22
= $198,000
Answer:
A. Debit Salaries Expense $5,400; Credit Salaries Payable $5,400
Explanation:
In the given case per day expense of salary = $1,800
Salary is paid every Monday for preceding week of 5 days.
The year ends on 31 December that is Wednesday, which means 3 days salary Monday, Tuesday and Wednesday will be liability outstanding at year end on 31 Dec and will be paid on upcoming Monday which will fall in next year.
Therefore Salary for current year for 3 days i.e. $1,800 X 3 = $5,400 will be liability for current year.
With the rule all expenses are debited Salaries Expense will be debited with $5,400 on 31 Dec
With the rule that all liabilities have credit balance Salaries Payable will be credited as a outstanding liability with $5,400 on 31 Dec.
A. Debit Salaries Expense $5,400; Credit Salaries Payable $5,400
Answer:
Aston has given the information required to meet division profit objective. Increasing the profit objective is common goal of every manager. Here manager wanted to meet profit objective by minimising fixed cost which is not wrong motive. Whether the excess production can be sold in the market. If there is a chance to sell, more production can be made.
Absorption costing means that all of manufacturing costs are absorbed by units produced. It calculates every cost on no. of units produced but it does not mean to increase production only in order to match income objective or to reach this goal instead of fact that inventory remains at end, and sale of that increased production does not take place and income objective met because of the lower cost per unit.
Answer:
The question does not include any requirements, so I looked for similar questions:
- Use the least squares method to develop the estimated regression equation.
-
For every additional car placed in service, estimate how much annual revenue will change.
1) Y = -14.95 + 12.82X
2) for every 1 thousand cars put into service, revenue should increase by $12.82 million.
See attached PDF for calculations
Answer:
Confidence Interval is 139.04 - 142.96
Explanation:
The formula for a confidence interval is as follow:
Mean (Average price) +/- z-score x standard deviation / sqrt(n)
Formula Interpretation:
Mean = $141
z-score for 95% confidence interval = 1.96
standard deviation = $4
n = 16 --> sqrt (n) = 4
By using these inputs, we can calculate the confidence interval as follow:
141 +/- 1.96 x (4/4)
Confidence Interval is 139.04 - 142.96
