Answer:
annual demand = 380 * 12 = 4,560
order cost = $8.50
annual holding cost = $0.45 * 25% = $0.1125
EOQ = √[(2 * 4,560 * $8.50) / $0.1125] = 830.10 ≈ 830 units
time between placement of orders = 830 units / 4,560 units = 0.182 years = 2.18 months
reorder point = 4,560 units * 2/12 (lead time) = 760 units
A new order should be placed when the inventory level is 760 units
Answer:
$117,417
Explanation:
Calculation to Determine the amount to be capitalized in the asset account
Costs that are to be capitalized:
List price $118,660
Less: Discount ($5,043)
($118,660*4.25%)
Freight cost $2,640
Specialist fee $1,160
Total costs $117,417
Therefore the amount to be capitalized in the asset account will be $117,417
Answer:
Stable, formal social structure that takes resources from the environment and processes them to produce outputs
Explanation:
The technical definition of an "organization", according to Laudon and Laudon, focused on three elements of an organization which are stable, formal and social structures.
In terms of longevity and routineness, an organization is more stable than an informal group. Organizations are formal legal entities with internal rules and procedures that must abide by laws. Organizations are also social structures because they are a collection of social elements.
Answer: Requitred units =34,285.7 units
Explanation:
GIVEN
Total Per Unit Sales
$ 300,000 $ 10
Variable expenses 180,000 <u> $6 </u>
Contribution margin 120,000 $ 4
Fixed expenses 100,000
Net operating income $ 20,000
New selling price=Old price - prosed price
=$10-$0.5 = $9.5
Revised contribution margin= Selling price-Variable costs
= $9.5-$6=$3.5
Proposed Contribution margin=Net operating income + Fixed expenses.
=(100,000 +20,000)= $120,000
Required units to be sold=Proposed Contribution margin/Contribution margin per unit
= $120,000/$3.5
=34,285.7 units
Answer:
Variable overhead efficiency variance= $100,000 unfavorable
Explanation:
Giving the following information:
200,000 machine‐hours are budgeted for variable overhead at a standard rate of $5/machine‐hour, but 220,000 machine‐hours were used.
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (200,000 - 220,000)*5
Variable overhead efficiency variance= $100,000 unfavorable
