Answer:
$87,000
Explanation:
Calculation of the conversion cost for November.
Conversion cost can be defined as the combination of both direct labor costs and manufacturing overhead costs that are vital to help convert raw materials into product.
Using this formula
Total Conversion cost = Direct labor cost + Manufacturing overhead cost
Hence,
Direct labor cost $25,000
Add Manufacturing overhead cost $62,000
Total Conversion cost $87,000
Therefore the conversion cost for November is $87,000
Answer:
accrued basis income: 14,300
cash basis income: 9,500
Explanation:
accrued: we reocgnize base on the time of transfer of goods and the expense are mathced when the period they occur.
revenues 33,700
operating expense <u> (19,400) </u>
net income 14,300
cash basis: we recognize based on the cash collection or disbursement:
collected from customer 25,900
paid expenses (13,600)
insurance paid <u> (2,800) </u>
net income 9,500
Answer and Explanation:
The computation of the total budgeted selling and administrative expenses is shown below;
Utilities expense $2,800
Administrative salaries $100,000
Sales commissions 5 % of sales i.e. 5% of $860,000 $43,000
Advertising $20,000
Depreciation on store equipment $50,000
Rent on administration building $60,000
Miscellaneous administrative expenses $10,000
total budgeted selling and administrative expenses $285,800
Answer:
option (c) $25 million
Explanation:
Data provided in the question:
The marginal propensity to consume in Frugalia, MPC = 0.60
Increase in spending = $10 million
Now,
The total increase in income
= 
× Increase in spending
on substituting the respective values, we get
= 
× $10 million
= 
× $10 million
or
= 2.5 × $10 million
or
= $25 million
Hence,
The answer is option (c) $25 million
