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diamong [38]
3 years ago
9

QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each altern

ative are listed below: Alternative A Alternative B Projected revenue $ 210,000 $ 300,000 Unit-level costs 40,000 51,000 Batch-level costs 27,500 39,000 Product-level costs 30,000 32,000 Facility-level costs 25,000 27,500 What is the differential revenue for this decision?
A. $115,000
B. $90,000
C. $210.000
D. $300,000
Business
1 answer:
Ira Lisetskai [31]3 years ago
6 0

Answer:

The correct answer is option (B)  $90,000

Explanation:

Given Data;

Alternative A Projected revenue= $ 210,000

Alternative B Projected revenue = $ 300,000

A -Unit-level costs = $40,000

B- Unit-level costs = $51,000

A -Batch-level costs $27,500

B- Batch-level costs = $39,000

A -Product-level costs = $30,000

B-Product-level costs = $32,000

A-Facility-level costs = $25,000

B-Facility-level costs = $27,500

To calculate the differential revenue, we use the formula;

Differential revenue = Revenue for alternative A - Revenue for alternative B

Substituting, we have

Differential revenue = $300,000 - $210,000

                                 = $90,000

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Christian Wolff, an infamous accountant (and martial artist), is injured while shutting his computer desk drawer in his office a
elena55 [62]

Answer:

D

Explanation:

Whether or not workers compensation applies to this situation depends on the office policy regarding the proper closing of computer desk drawers.

6 0
3 years ago
Labor costs are 30% of sales. Other operating costs are $38,000 per month (including $10,000 of depreciation). Both of these are
Alina [70]

$14,000 rupees will be disbursed totally in march.            

<u>Explanation</u>:

  • The operating cost is $38,000 per month. This is including depreciation. So cash pending on March 1 is $8,000.
  • At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
  • He can borrow money in multiples of $1000. For emergencies, this money can be borrowed. So $14,000 should be dispersed in the month of March.                        
3 0
3 years ago
On January 1, Gucci Brothers Inc. started the year with a $705,000 balance in Retained Earnings and a $608,000 balance in common
gtnhenbr [62]

Answer:

Stockholder Equity= $1,414,400

Explanation:

Stockholder Equity is the owners contribution to a business and it is made up of retained earnings and stock.

Stockholder Equity = Common stock + Retained Earnings

Let's track changes in common stock

Common stock= Starting balance + New stocks issued

Common stock= 608,000 + 22,500

Common stock= $630,500

Changes in retained earnings

Retained earnings= Starting balance + Income earned - Dividend paid out

Retained earnings= 705,000 + 93,000- 14,100

Retained earnings= $783,900

Therefore

Stockholder Equity= 630,500+ 783,900

Stockholder Equity= $1,414,400

7 0
3 years ago
Brace Corporation uses direct labor-hours as the cost driver in its normal costing system. Brace budgeted that it would use 21,6
arsen [322]

Answer:

total estimated overhead costs for the period= $515,095.2

Explanation:

<u>First, we need to calculate the allocated overhead:</u>

Under/over applied overhead= real overhead - allocated overhead

20,440 = 506,920 - allocated overhead

allocated overhead= $486,480

<u>Now, we can determine the predetermined overhead rate:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

486,480= Estimated manufacturing overhead rate*20,400

Estimated manufacturing overhead rate= 486,480/20,400

Estimated manufacturing overhead rate= $23.847 per direct labor hour

<u>Finally, the estimated overhead for the period:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

23.847= total estimated overhead costs for the period/21,600

total estimated overhead costs for the period= 21,600*23.847

total estimated overhead costs for the period= $515,095.2

4 0
3 years ago
Colbert operates a catering service on the accrual method. In November of year 1 Colbert received a payment of $9,000 for 18 mon
Shalnov [3]

Answer:

b) $500 is recognized in year 1 and $8,500 in year 2.

Explanation:

The calculation is shown below:

Since the payment is received for 18 months of $9,000

So for one month, the payment is

= $9,000 ÷ 18 months

= $500

This $500 should be recognized in year 1 and the remaining amount i.e

= $9,000 - $500

= $8,500

This $8,500 should be recognized in year 2

Hence, b option is correct

6 0
3 years ago
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