1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
allsm [11]
2 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]2 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

You might be interested in
To be a successful manager, the only skills an IT project manager needs to possess is excellent technical skills.
xeze [42]

Answer:

false

Explanation:

For successful IT managers, IT knowledge is not only the skills that need to be inherited but skills like communication, organizational and negotiation skills are must also.

other skills other than IT is also play a very important role in the growth of an individual.

communication skills help to developed interpersonal skills. A good communicator is a good influencer and good motivator thus individual having good communication can help and guide  their subordinate to bring the positive results

4 0
3 years ago
According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual
Paha777 [63]

Answer:

A) True

Explanation:

The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.

Return earned by a portfolio is the weighted average return of the individual stock returns.

CAPM helps calculate expected return of an investor by the following formula:

Return = R_{f} \ + B(R_{m}\ -\ R_{f}  )

wherein, R_{f} = Risk free rate of return yielded by treasury bonds

              B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.

             R_{m}= Return which can be earned on market portfolio

Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.

6 0
3 years ago
Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions serv
aivan3 [116]

Answer: B. Full Service Agency

Explanation: The above agency would provide all the necessary services to its clients -an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

6 0
3 years ago
Tulip Corporation purchased equipment for $ 54 comma 000on January​ 1, 2017. On December​ 31, 2019, the equipment was sold for $
Digiron [165]

Answer:

Gain/loss= $1,000 loss

Explanation:

Giving the following information:

Original price= $54,000

Accumulated depreciation= $28,000

Seling price= $25,000

The gain or loss from selling an asset depends on the book value.

Book value= original price - accumulated depreciation

Book value= 54,000 - 28,000= 26,000

If the selling price is higher than the book value, the company gain from the sale.

Gain/loss= 25,000 - 26,000= $1,000 loss

6 0
3 years ago
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di
Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +

[(Dn * (1+g)  /  (r - g))  /  (1+r)^n]

Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends
  • n is the number of years

Present value = 5 / (1+0.155)  +  6.25 / (1+0.155)^2  + 4.75 / (1+0.155)^3  +  

3 / (1+0.155)^4  +  [(3 * (1+0.07)  /  (0.155 - 0.07))  /   (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0
3 years ago
Other questions:
  • This morning, you purchased a stock that will pay an annual dividend of $1.90 per share next year. You require a 12 percent rate
    11·1 answer
  • You run a game-day shuttle service for parking services for the local ball club. Your total costs for different customer loads a
    14·1 answer
  • A permanent decline in the market value of an asset is called
    7·1 answer
  • The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and servin
    15·1 answer
  • Define present value.a. The present value is the value today of a sum of money to be received in the future and in general is le
    15·1 answer
  • Last year ABC Media had $425 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In mil
    5·1 answer
  • how can good boilerplate tersm and conditions of contract still fail to protect an orgnaization against some risk
    6·1 answer
  • On June 1, 2019, Cain Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Pr
    14·1 answer
  • Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to re
    10·1 answer
  • A 40-year old taxpayer has owned a Roth IRA for more than 5 years. A $10,000 distribution will be considered nonqualified if the
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!