$9.7295 amount of production costs would be assigned to Product A
<h3>What is
production ?</h3>
Production is the process of combining different material and immaterial inputs to create something for consumption. It is the act of producing an output, such as a good or service, that has value and contributes to people's utility.
Land, labor, capital, and entrepreneurship are the four production factors.
Production has six facets, according to Peterson and Anand (2004): technology, law and regulation, industry structure, organizational structure, occupational careers, and market.
The four factors of production are inputs used in various combinations to produce goods and services for a profit. Land, labor, capital, and entrepreneurship are the production factors. They are the supply inputs required.
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Answer:
36 applications/hour
Explanation:
Number of application/hour/worker = 60/processing time
Number of application/hour = (60/processing time) * Number of workers
Process No of Processing Number of application Number of
Workers Time (min) /hour/worker application/hour
Application 4 6 10 40
Processing
Credit Check 6 10 6 36
Determine 6 15 4 24
Credit Limit
Issue Card 2 2 30 60
Capacity of credit check in applications per hours = 36 applications/hour
Answer:
a) 10
b) 85
Explanation:
a)
The safety stock is gotten by multiplying the standard deviation with the appropriate z value (demand and service level).
THe z coefficient of service level of 95% is 1.64
So we multiply the SD (standard deviation) with 1.64
Safety Stock = 6 * 1.64 = 9.84 = 10
b)
Now, the reorder point.
Reorder Point = Lead Time Demand + Safety Stock
It is already given that Lead TIme Demand is 75 and we found Safety Stock to be 10, so:
Reorder Point = 75 + 10 = 85
Answer:
b. credit to factory overhead for $432,000.
Explanation:
Before recording the factory overhead costs we need to do the calculations which are shown below:
For computing the ended overhead amount, first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated factory overhead) ÷ (estimated direct labor-hours)
= $360,000 ÷ 30,000 hours
= $12
Now we have to find the actual overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
= 36,000 hours × $12
= $432,000
So, the ending overhead equals to
= Actual manufacturing overhead - actual overhead
= $377,200- $432,000
= $54,800 under-applied
Answer:
D. Home made Leverage
Explanation:
Home made leverage is a situation in which an investor utilizes borrowed funds to artificially adjust or change the level of leverage of a company. An Home made leverage can be used to turn an unleveraged company to a leveraged one.
One of the terms of home made leverages, however, is that, the investor who is borrowing to make a company leveraged must be able to borrow at the same borrowing cost of the firm.
Reason for Using Home Made Leverage
One of the main reasons is as stated in the question, which is to replicate a corporation's capital structure.
According to Modigliani-Miller theorem, however, the home made leverage will only work smoothly for an investor as long as taxes and bankruptcy costs are absent and the market is efficient. This clause is the reason for the initial clause that home mode leverage works as long as the investor is able to borrow at the same borrowing cost as the firm.
