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gregori [183]
3 years ago
8

Buckson Framing's cost formula for its supplies cost is $1,350 per month plus $18 per frame. For the month of June, the company

planned for activity of 716 frames, but the actual level of activity was 713 frames. The actual supplies cost for the month was $14,820. The supplies cost in the flexible budget for June would be closest to___________.
a. $14,820
b. $14,184
c. $14,238
d. $14,178
Business
1 answer:
Pani-rosa [81]3 years ago
8 0

Answer:

correct option is c. $14,238

Explanation:

given data

supplies cost = $1,350 per month

per frame = $18

actual supplies cost  = $14,820

planned for activity = 716 frames

solution

we get here Total supplies cost in  flexible budget for June that is express as

Total supplies cost = Total planned variable cost + Fixed monthly cost ..........1

and here Total planned variable cost is = 716 × $18 = $12888

put here value in equation 1 we get

Total supplies cost in flexible budget for June =  $12888  + $1,350

Total supplies cost in flexible budget for June =  $14,238  

correct option is c. $14,238

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3 years ago
Grievance procedures in nonunion firms: a. Usually have arbitration as its final step and permit the use of wildcat strikes amon
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4 0
3 years ago
You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c
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Answer:

c. 15.8%

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8 0
3 years ago
Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: D
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Answer:

$25,000 increase

Explanation:

Cost of Manufacturing                                                           Amount

Direct Materials                                                                    $150,000.00

Direct Labor                                                                          $240,000.00

Inspecting products                            60,000 x 0.90              $54,000.00

Providing Power                       30,000 x 0.90                      $27,000.00

Providing Supervision           40000 x 0.60                              $24,000.00

Setting up Equipment                    60000 x 0.50              $30,000.00

Moving Materials                           20,000 x 0.50               $10,000.00

Total                                                                                    $535,000.00

Buying Cost                                  (20000 x 25.50)             $510,000.00

Incremental Saving by Purchase ( $535000-$510000)      $25,000.00

3 0
3 years ago
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