Answer:
4) $385,000.
Explanation:
The computation of the minimum unit price is shown below:
= Direct materials + Direct labor + Supervisor salary + Fringe benefits on direct labor
= $200,000 + $150,000 + $20,000 + $15,000
= $385,000
Simply we added the direct material, direct labor, supervisor salary and the fringe benefits so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
The answer is C
Explanation:
This is an interest expense.
In accounting, the rule is as follows:
Debit side increases asset and expenses while credit side decreases liability, shareholders' equity and sales or revenue.
Credit side decreases asset and expenses while credit side increases liability, shareholders' equity and sales or revenue.
2 points on $400,000 means the interest charge is 2 percent on $400,000.
So we have 0.02 x $400,000
$8,000.
It will be a debit side because it is an increase in expense.
Answer:
Total allocated cost= $146.4
Explanation:
Giving the following information:
Julie Stone visited the hotel for a 6-night stay.
Julie had 3 meals in the hotel during the visit.
guest check-in= $8.40 per guest check-in
room cleaning= $21.00 per room cleaning
meal service= $4.00 per served meal
<u>To allocate costs based on the activity, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
guest check-in= 8.40*1= 8.4
room cleaning= 21.00*6= 126
meal service= 4.00*3= 12
Total allocated cost= $146.4
According to the enotes, if a company does not have a current supplier for a part, they must issue a Request for quotation (RFQ) so their potential supplier can provide a detailed quote that might include more than just a per unit price, it may also include delivery date, and payment terms. This quote invites suppliers into a bidding process to bid on specific products or services. However, it is only the first step in a negotiation with a supplier.
Answer:
Effect on income= $120,000 loss
Explanation:
Giving the following information:
Sales $320,000
Variable costs $200,000
Fixed costs $140,000.
None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.
Effect on income= Sales - varaible cost
Effect on income= 320,000 - 200,000= $120,000 loss
