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Agata [3.3K]
3 years ago
10

1. Pane Corp. manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The followi

ng are required for production of one gallon: Ingredient Lime Kool-Drink Sugar Protein Tablets Water Amount per Gallon 24.0 oz. .72 lb. 2 50 oz. Standard Waste 4% 10% 0% 0% Standard Price $0.15 per oz $0.65 per lb $0.40 per tablet $0.01 per oz Compute the standard usage (quantity) and standard cost of the ingredients for one gallon of the nutrition drink.
Business
1 answer:
olga55 [171]3 years ago
4 0

Answer:

Standard cost = $5.57

Explanation:

As per the data given in the question,

Standard cost = Standard usage * standard price

Ingredient   Amount/gallon  st. waste   St. usage            St. price      St. cost

Lime          24.0 Oz                4%       .96X=24.0 Oz=25 Oz    0.15        $3.75     kool-drink

Sugar        .72 lb                     10%     .90X=.72 lb = 0.8 lb     $0.65      $0.52

Protein tablets 2                     0%                2                         $0.40      $0.80

Water        50 Oz                    0%                50 Oz                 $0.01       $0.50

Total                                                                                                         $5.57

Total standard cost = $3.75 + $0.52 + $0.80 + $0.50

= $5.57

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A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It
vodka [1.7K]

Answer:

second year depreciation 13,072

Explanation:

190,000 - 10,000 = 180,000 ammount subject to depreciation

then we do:

180,000/75,000 = 0.688 rate per bolt

to get the depreciation for the second year:

19,000 x rate = 19,000 x 180,000/75,000 =  $13,072.00

doing it in a single step avoid rounding errors.

4 0
4 years ago
Briefly describe variable, fixed, mixed, and step costs, and indicate how the total cost function of each changes as activity in
vitfil [10]

Answer:

Explanation:

• Variable costs are costs that varies with activity level. It means that these costs changes as more and more goods and services are produced by a company. Total variable cost changes with change in output produced by a firm in the long run.

Examples of variable costs are costs of raw materials used in producing goods, direct labor costs, sales commission etc.

• Fixed costs are costs that does not vary with activity level. This means that these costs remains the same as more and more goods are produced by a company. The total fixed cost does not change with changes in output produced by a company in the short run.

Examples are rent payments, salaries, depreciation.

•Mixed costs are costs that have components of both fixed and. variable costs. The fixed part of mixed cost remains unchanged as activity level increases or decrease while the variable part changes with activity level. The fixed part of a total cost function of a mixed cost remains the same as activity level increases in the short run, while the variable part changes with output level in the long run.

Examples are utilities, insurance, operating license

•Step costs. These are costs that remains the same at an activity level but increases or decreases when the threshold of an activity is achieved.

Example is a factory production supervisor salary

3 0
3 years ago
The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing mod
fenix001 [56]

Answer: See explanation

Explanation:

Your question is not complete. Here is the completed question:

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model, what is the risk premium?

The risk premium will be the difference between the market portfolio and the treasury bill rate. This will be:

= 10% - 6%

= 4%

8 0
3 years ago
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $47000. If the b
LekaFEV [45]

Answer: $41,600

Explanation: The percentage of receivables method is used to evaluate the amount of bad debt the company can experience in future. Under this method, the bad debt expense is the difference between the ledger balance and the actual balance of bad debt expense.

In the given case, we can calculate it as follows :-

Bad debt expense = estimated uncollectible accounts - allowance

                                = $47,000 - $5,400

                                = $41,600

3 0
3 years ago
In Chapter 1, you learned that buying and selling textbooks are two separate decisions made at the margin. Textbooks create valu
Delvig [45]

Answer:

$300

Explanation:

The total value gained V is given by sum of the value gained when buying the book (B) added to the value gained when selling the book (S).

The value gained at purchase is given by the difference between the willingness to pay and the actual amount paid:

B=\$450 -\$200\\B= \$250

The value gained when selling the book is given by the difference between the amount received from selling and the value of keeping the book:

S= 0.5*\$200 - \$50\\S=\$50

The total value gained is:

V= B+S\\V=\$250+\$50\\V=\$300

You have gained $300 in total value.

3 0
4 years ago
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