Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>
Savings <u> 10,800</u>
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
Answer:
The revenue that the investment in the company would increase by $100,000.
Explanation:
Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:
- Cost
- Net Realizable Value (Fair Value less Cost to Sell)
This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.
The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.
Answer:
A bachelor degree is typically earned between 3 and 4 years. Many schools require students to complete about 40 courses or 120 credit hours.
Answer:
The Dependent or the Beneficiary collect $1000 every month pay income tax
Explanation:
Bonita is the policyholder that pay premium .
The mother is the dependent and the beneficiary ,who takes the trust monthly
The bank is the trustee that disburse the trust fund to the beneficiary month .
Answer:
$735 billion
Explanation:
Calculation to determine the national saving
Using this formula
National saving =Gross domestic product-Consumption expenditure-Government expenditure
Let plug in the formula
National saving=$2,450 billion-$1,390 billion- $325 billion
National saving=$735 billion
Therefore the national saving is $735 billion
