The amount of track improvement cost that should be allocated to the Western Division is $3,200,000.
<h3>What amount should be allocated to
Western Division?</h3>
The amount that should be allocated to Western Division is a function of the miles travelled on the Western division.
The amount to be allocated to Western Division : (miles travelled on Western division / total miles travelled) x cost of the revision
- miles travelled on Western division = 800,000 miles
- total miles travelled = 1,200,000 + 800,000 = 2,000,000 miles
The amount to be allocated to Western Division : (800,000 / 2,000,000) x 8,000,000 = $3,200,000
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Answer:
<em>For better inventory and distribution, employees should be educated on all of the procedures involved and should be given as much time as needed to ensure they are fully informed. </em><em><u>True</u></em><em> </em>
Answer:
The change in the dollar amount of inventory is $200 due to change in the inventory costing method.
Explanation:
The variable cost per unit is $6.00 while the fixed cost per unit is $2.00
Variable cost per unit = $6.00
Absorption cost pet units = $8.00
Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory
Total absorption cost = $8.00 × 100 = $800
Total cost under variable cost = Variable cost per unit × number of units in ending inventory
Total variable cost = $6.00 × 100 = $600
Change in cost = Total absorption cost - Total variable cost
Change in cost = $800 - $600 = $200
Answer:
C. $10,000 positive.
Explanation:
The computation of the amount that should be included is shown below:
= (Option strike price - spot rate) × purchased put options
= ($2.17 - $2.13) × 250,000
= $10,000
As the spot rate is less than the strike price so automatically there is a gain of $10,000
Hence, the option c is correct
Answer:
Break-even point in composite units = 811 units
Explanation:
Number of modal;
5 Youth models
9 Adult models
6 Recreational models
Annual fixed costs total = $6,550,000
Find:
Break-even point in composite units
Computation:
Mixed contribution margin = 5[130] + 9[475] + 6[525]
Mixed contribution margin = 650 + 4275 + 3150
Mixed contribution margin = $8075
Break-even point in composite units = Annual fixed costs total / Mixed contribution margin
Break-even point in composite units = 6,550,000 / 8075
Break-even point in composite units = 811 units