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allsm [11]
3 years ago
12

Sawaya Co., Ltd, of Japan, is a manufacturing company whose total factory overhead costs fluctuate considerably from year to yea

r according to increase and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs (in Japanese yen) at high and low levels of activity for recent years are given below:
Low (Level of Activity) High (Level of Activity)
Direct labor-hours 50,000 75,000
Total factory overhead costs Yen 14,250,000 Yen 17,625,000
The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 50,000-hour level of activity as follows:

Indirect materials (variable) Yen 5,000,000
Rent (fixed) 6,000,000
Maintenance (mixed) Yen 3,250,000
Total factory overhead costs Yen 14,250,000
To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1. Estimate how much of the Yen 17,625,000 factory overhead cost at the high level of activity consists of maintenance costs.

2. Using the high-low method, estimate a cost formula for maintenance.

3. What total factory overhead cost would you expect the company to incur at an operating level of 70,000 direct labor-hours?
Business
1 answer:
coldgirl [10]3 years ago
5 0

Answer:

Explanation:

1. Indirect Material variable cost Per Direct Labor HR 5000000/50000=100

Indirect Material (variable) 100*75000 =7500000

Rent Fixed 6000000

Hence total Maintenace Fixed =17625000-7500000-600000= 4125000

2.

                   Low            High      Change

Cost 3250000 4125000 875000 [4125000-3250000]

Activities 50000          75000   25000

variable Portion of Maitencance cost =875000/25000= 35.00

Fixed cost=4125000-75000*35=1500000

Variable cost=35

cost formula for maintenance= 1500000+35b

3.

Indirect Material (variable) 100*70000 = 7000000

Rent Fixed                      6000000

Maintenance cost = 1500000+35*70000=3950000

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storchak [24]

Answer:

The cost of goods sold using the LIFO menthod is;

d. $3,580

Explanation:

Last in First Out (LIFO) method is an inventory method where the recently purchased good is sold first. This means that when accounting for the cost of goods sold, we use the unit cost of the goods that were purchased recently. In our case;

1 Beginning Inventory 150 units @ $10.00

5 Purchase 220 units @ $12.00

10 Sales 140 units @ $20.00

15 Purchase 100 units @ $13.00

24 Sales 150 units @ $21.00

<em>Step 1: Determine total number of units sold;</em>

Total number of units sold=number of sales on May 24+number of sales on May 10

where;

number of sales on May 24=150 units

number of sales on May 10=140 units

replacing;

Total number of units sold=(150+140)=290 units

Total number of units sold=290 units

<em>Step 2: Determine total cost of goods sold</em>

The first 100 units sold were each sold at $13

The remaining 190 units were each sold at $12

Total cost of goods sold=(100×13)+(190×12)=(1,300+2,280)

Total cost of goods sold=$3,580

5 0
3 years ago
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $25,700 Food a
Aleks [24]

Answer:

a. $9,338

b. 0.363

Explanation:

a. Contribution Margin  = Sales - Variable Cost

Where Sales = $25,700

Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses

V.C. = 8,982 + 6,500 + 40% * 3,700

V.C = 8,982 + 6,500 + 1,480

= $16,362

Therefore, Contribution Margin  = Sales - Variable Cost  

= $25,700 - $16,362

=$9,338

b. McDonald's contribution margin ratio  = Contribution Margin / Sales

= $9,338 / $25,700

= 0.363

6 0
3 years ago
Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m
Bess [88]

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

4 0
3 years ago
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Pani-rosa [81]

Answer: They include land (including natural resources), capital, and labor.

Explanation:

6 0
3 years ago
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Arturiano [62]

Answer:

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Explanation:

According to my research on different fields of psychology, I can say that based on the information provided within the question Nico aspires to be a clinical psychologists. This is a branch of psychology that focuses on diagnosing and treating mental, emotional, and behavioral disorders on different individual in order to help them by diagnosing and providing a solution.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
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