Answer:
the budgeted direct labor cost is $441,000
Explanation:
The computation of the budgeted direct labor cost is shown below:
Budgeted direct labor cost
= Budgeted production × hours per unit × rate per hour
= 28,000 units × 1.5 × $10.50
= $441,000
Hence, the budgeted direct labor cost is $441,000
So the correct option is B.
It can be deduced that the number of blankets that must be sold in order for the company to achieve the target profit is 40000.
<h3>How to calculate the target profit</h3>
From the information, Blissful Blankets' target profit is $520,000 and each blanket has a contribution margin of $21. Fixed costs are $320,000.
Therefore, the number of blankets that must be sold to achieve the target profit will be:
= (520000+320000)/21
= 40000
Learn more about profit on:
brainly.com/question/1078746
I really don’t know but mark me brainliest because I lost most of my points
Answer:
The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.
Explanation:
- Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000
- Income tax expense for 2019 = 180.000-28.000=152.000
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%