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dimaraw [331]
11 months ago
10

a company has sales of $119,000; cost of goods sold of $74,870; and total direct expenses of $8,620. the department’ contributio

n to overhead is:
Business
1 answer:
arsen [322]11 months ago
6 0

The department’ contribution to overhead is $35510.

<h3>How to calculate the department contribution to overhead?</h3>

Given, sales= $119,000;

cost of goods sold= $74,870;

total direct expenses= $8,620.

Gross profit = Sales - (COGS + Direct expenses)

Gross profit = $119,000 - ($74870 + $8620)

Gross profit = $35,510.

<h3>What are direct expenses?</h3>

Direct costs, commonly referred to as costs of goods sold (COGS), are expenses that are entirely attributable to the creation of a particular commodity or service. These expenses cover the direct costs of the materials required to make the product as well as maybe any labor charges that are utilized only to make the product.

To know more about gross profit, visit:

brainly.com/question/18567528

#SPJ4

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What is any factor that makes it difficult for a new firm to enter a market referred to as?
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A barrier to entry is any factor that makes it difficult for a new firm to enter a market. 
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On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bondfor $1,000. The bond pays interest on January
Arturiano [62]

Answer:

Option (B) is correct.

Explanation:

Interest accrued for 6 months (January 1 to July 1):

= $1,000 × 6% × (6 ÷ 12)

= $30

This shall be credited to interest revenue as this is the income of the investor.

Sale value of investment:

= Bond selling price on July 1 + Interest accrued for 6 months

= $1,200 + $30

= $1,230

Gain on sale of investment:

= (Selling price - Purchase price) - Accrued interest

= ($1,230 - $1,000) - $30

= $200

Therefore, the Journal entry for this transaction is as follows:

Cash A/c                 Dr. $1,230

To debt investments                  $1,000

To Gain on sale of investment  $200

To Interest revenue                   $30

(To record the cash proceeds at the time the bond is sold)

7 0
3 years ago
1. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $74,000 cash immediat
sergey [27]

Answer:

1. The PV of option 3 which is $90,000 is the highest. Therefore, Alex will choose option 3 because it has the highset PV.

2. The fund balance after the last payment is made on December 31, 2027 will be approximately $1,934,302.71.

Explanation:

1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose?

Alex will choose the option with the highest present value (PV). The present value of each option can be determined as follows:

Option 1: $74,000 cash immediately

PV of option 1 = $74,000

Option 2: $26,000 cash immediately and a six-period annuity of $8,300 beginning one year from today

PV of $26,000 cash immediately = $26,000

PV of a six-period annuity of $8,300 beginning one year from today can be determined using the formula for calculating the present value of an ordinary annuity as follows:

PV of $8,300 annuity = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the $8,300 annual payments today =?

P = Annual payment = $8,300

r = interest rate = 6% = 0.06

n = number of years = 6

Substitute the values into equation (1) to have:

PV of $8,300 annuity = $8,300 * ((1 - (1 / (1 + 0.06))^6) / 0.06)

PV of $8,300 annuity = $8,300 * 4.9173243260054

PV of $8,300 annuity = $40,813.79

Therefore,

PV of option 2 = PV of $26,000 cash immediately + PV of $8,300 annuity = $26,000 + $40,813.79 = $66,813.79

Option 3: a six-period annuity of $15,000 beginning one year from today

The PV of option 2 can be determined using the formula for calculating the present value of an ordinary annuity as follows:

PV of option 3 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where;

PV of option 3 = Present value of the $15,000 annual payments today =?

P = Annual payment = $15,000

r = interest rate = 6% = 0.06

n = number of years = 6

Substitute the values into equation (2) to have:

PV of option 3 = $15,000 * ((1 - (1 / (1 + 0.06))^6) / 0.06)

PV of option 3 = $15,000 * 4.9173243260054

PV of option 3 = $90,000

Based on the calculations, the PV of option 3 which is $90,000 is the highest. Therefore, Alex will choose option 3.

2. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2027?

This can be determined using the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (3)

Where,

FV = Future value of the deposits after 10 years =?

M = Annual deposits = $140,000

r = annual interest rate = 7%, or 0.07

n = number of years = 10

Substituting the values into equation (3), we have:

FV = $140,000 * (((1 + 0.07)^10 - 1) / 0.07)

FV = $140,000 * 13.8164479612795

FV = $1,934,302.71

Therefore, the fund balance after the last payment is made on December 31, 2027 will be approximately $1,934,302.71.

4 0
2 years ago
The Anazi Leather Company manufactures leather handbags (H) and moccasins (M). The company has been using the factory overhead r
Aliun [14]

Answer:

The amount of factory overhead to be allocated to each unit using direct labor hours.

Handbag =  $4.3 / unit

Moccasins =  $2.55 / unit

Explanation:

Predetermined Overheads rate

Cutting  = 80,000 / 100,000 = $0.8 / labor hour

Sewing  = 280,000 / 160,000 = $1.75 / labor hour

Overheads Allocation

Handbag

Cutting = 1 x 0.8 = $0.8

Sewing = 2 x 1.75 = $3.5

Total Per unit overhead allocation = 0.8+3.5 = $4.3 / unit

Moccasins

Cutting = 1 x 0.8 = $0.8

Sewing = 1 x 1.75 = $1.75

Total Per unit overhead allocation = 0.8+1.75 = $2.55 / unit

4 0
3 years ago
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