Answer:
The answer is How.
Explanation:
When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.
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Answer:
a. Overhead Rate = 0.34
b. Direct Labour Cost = $53,820
Explanation:
a.
Overhead Rate based on direct materials is calculated as overhead cost/direct material cost
Overhead Cost = $612,000
Direct Materials Cost = $1,800,000
Overhead Rate = $612,000/$1,800,000
Overhead Rate = 0.34
b.
Given
Total cost of job in process = $90,000
Material Cost of job in process = $27,000
Overhead Applied = $9,180 (0.34% * $27,000)
Direct Labour Cost = Cost of job in process - Material Cost - Overhead Applied
Direct Labour Cost = $90,000 - $27,000 - $9,180
Direct Labour Cost = $53,820
Answer: we will first add the options.
A. Maximize the market value of the equity.
B. Maximize net income given the current resources of the firm.
C. Minimize the tax impact on the proprietor.
D. Decrease long-term debt to reduce the risk to the owner.
E. Minimize the reliance on fixed costs.
The correct option is A. Maximize the market value of the equity.
Explanation: A sole proprietorship is generally owned by an individual. Therefore there is a usually a limitation to how much funds that can be invested in the business.
What this means is that this form of business is very simple and restrictive with regards to equity financing. In other words, equity financing is usually limited to the amount of funds that the sole proprietor is willing to invest in the business.
This is where good financial management comes in, this is to ensure that the invested equity bears fruit, and achieves high market value in order to yield revenue.
Lack of proper management and the invested equity will be squandered.
The recorded cost of the machinery should be =40,000 (down payment) + 40,000 *4 = 200,000
Since there is no interest payment, the recorded cost of the machinery = $200,000
