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Xelga [282]
3 years ago
12

Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $90,000). Five thousand pounds of Nuts can be sold

at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method. The amount of joint cost allocated to Nuts would be:
Business
1 answer:
Klio2033 [76]3 years ago
6 0

Answer:

$36,000

Explanation:

Joint process cost =$85000

Allocation of Joint cost using relative sales value method:-

Sales value of Nuts = 5,000 pounds × $20 per pound

                                = $100,000

Sales value of Bolts = 10,000 pounds × $15 per pound

                                 = $150,000

Total sales value = $100,000 + $150,000

                             = $250,000

Joint cost allocate to Nuts:

= (Total Joint cost ÷ Total relative sales value) × Sales value of Nuts

= ($90,000 ÷ $250,000) × $100,000

= $36,000

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Answer: The correct answer is "D. They earn identical rewards per unit of systematic risk.".

Explanation: If you are comparing 3 values and by calculating, find that they all have the same Treynor ratio means that they earn identical rewards per unit of systematic risk.

7 0
3 years ago
You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
Amanda [17]

Answer:

6.14%

Explanation:

The rate of return for the date given in the question for the asset shall be determined through calculating Internal rate of return on this asset, which shall be calculated as  follows:

Year          Cash flow               Present [email protected]%     Present [email protected]%

0               ($7,250)                  ($7,250)                      ($7,250)

1                 $750                       $714.29                      $681.82

2                $1,000                    $907.03                     $826.45

3                $850                       $734.26                     $638.62

4                 $6,250                    $5,141.89                   $4,268.83

                                                   $247.7                       ($834.28)

IRR=A%+[a/(a-b)*(B%-A%)]

A%=5%, a=$247.7 B%=10%  b=(834.28)

IRR=5%+[247.7/(247.7+834.28)*(10%-5%)]

IRR=6.14%

4 0
3 years ago
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aliina [53]

Answer:

quality:quantity

Explanation:

Intrinsic motivation contributes to the quality of work; incentives contribute to the quantity of work.

This is straight from one of the theories of reward management. These theories agree on a few broad strokes but fundamentally disagree on the overidiing motivation of human workers. Some giants in this field include Maslow, Vroom, Taylor, etc.

8 0
3 years ago
A company uses sugar in producing its product. If the price of sugar doubles, which variance is directly impacted?A) Direct mate
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Answer:

B) Direct materials price variance

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Else labor variance does not use direct material price, therefore option C) and option D) are invalid further direct material quantity variance uses standard rate and no actual rate is used.

Therefore correct option is

D) Direct Material Price Variance

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