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VladimirAG [237]
3 years ago
10

Ross Corporation produces a single product. The company has direct materials costs of $8 per unit, direct labor costs of $6 per

unit, and manufacturing overhead of $10 per unit. Sixty percent of the manufacturing overhead is for fixed costs. In addition, variable selling and administrative expenses are $2 per unit, and fixed selling and administrative expenses are $3 per unit at the current activity level.
Assume that direct labor is a variable cost. Under variable costing, the unit product cost is:

Multiple Choice

$18 per unit

$21 per unit

$20 per unit

$24 per unit
Business
1 answer:
Dima020 [189]3 years ago
5 0

Answer:

Option A is correct

Explanation:

Under variable costing, the unit product cost is:=(Direct materials+Direct labor+Variable manufacturing overheads_)

= (8+6+(10*40%)

which is equal to

=$18 per unit(A).

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Evans products uses a process costing system with two processing departments: the mixing department and the finishing department
Mice21 [21]

Answer:

A debit to Work-in-Process Inventory, Finishing Department of $140,000

Explanation:

Data provided

Cost transferred per unit = $4

Units transferred = 35,000

Total cost of units transferred = Cost transferred per unit × Units transferred

= $4 × 35,000

= $140,000

Therefore Process department is a finishing department. From the last processing department to finished goods and when only finished goods are debited.

$140,000 will be paid to the Work-in-Process Inventory, Mixing Department and debited to the Finishing Department, Work-in-Process Inventory.

3 0
3 years ago
A company reported net income of $200,000 during 2019. The company reported depreciation expense of $35,000, patent amortization
OLga [1]

Answer:

The correct answer is B

Explanation:

The company’s cash flow from operating activities for the year 2019 is computed as follows;

Net income $200,000

Add:

Depreciation 35,000

Amortization of patent 10,000

loss on the sale of equipment 5,000

Total cash provided by operating activities $250,000

*Depreciation expense, amortization expense and loss on sale on equipment are all non cash transaction which cause a decrease on net income. Thus if we want to know the actual cash activities for the year, we have to add it back to the Net income to arrive the correct answer.

5 0
3 years ago
A company purchased land for $350, 000 cash. Real estate brokers commission was $25,000 and $35,000 was spent for demolishing an
docker41 [41]

Under the historical cost principle the cost of land would be recorded at: <u>d. $410,000 </u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Purchase cost of land = $350,000

Brokers commission = $25,000

Cost for demolishing old building = $35,000

Principle cost of land = ?

Principle cost of land= Purchase cost of land+ Brokers commission+ Cost for demolishing old building

            = $350,000+$25,000+$35,000

            = $410,000

Principle cost of land= $410,000

The correct option is <u>d.$410,000</u>.

7 0
3 years ago
To develop _____ plans, managers identify important factors in the environment, such as possible economic downturns, declining m
vladimir1956 [14]

Answer: contingency

Explanation: Managers must identify important factors in the environment in order to develop contingency plans. Some of these factors that might affect the business or an organization as the case maybe would include possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents. Contingency plans are alternative plans to be put into operation if needed, especially in case of emergencies, or if a primary plan fails.

5 0
2 years ago
Consider the following threeminusyear project. The initial afterminustax outlay or afterminustax cost is​ $1,500,000. The future
Elan Coil [88]

Answer:

1.875 years

Explanation:

The payback period is the period required for a project to repay its initial investments.

Pay back period = initial investments/ initial investments

In this case: Initial investments: $ 1,500,000.00

cash flows :

Year       initial invest Accumulated Depreciation

0     ( 1,500,000.00)  (1,500,00.00

1     800,000    800,000

2     700,000   700,000/800,00

Payback period = 1 year + 700,000/800,000

   = 1.875 years

8 0
3 years ago
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