Which of the following is the process of taking the necessary preventive or corrective actions to keep things on track?

Let us suppose that a hospital wants to set their fees for an overnight stay such that the contribution margin on a hospital roo

Rainbow [258]

Answer: $756

Explanation:

Based on the information given in the question, the fee that should be charged to obtain a contribution margin of 18% will be:

Target fee = Variable cost/(1-Contribution Margin)

= $620/(1 - 18%)

= $620/(82%)

= $620/0.82

= $756

They should charge $756

3 0

3 years ago

The following data was collected from the manufacturing of an auto component. It represents the diameter (in mm) of that compone

andre [41]

Answer:

9.37

Explanation:

The computation of LCL for a control chart is shown below:-

Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range

1 10 12 12 14 12 4

2 12 11 13 16 13 5

3 11 13 14 14 13 3

4 11 10 7 8 9 4

5 13 12 14 13 13 2

For computing the mean observation and range we will use the below formulas

Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4

Range = Highest value - Lowest value

$LCL = \bar{\bar{X}} - A2 \bar{R}$

$\bar X$ = ( 12 + 13 + 13 + 9 + 13 ) ÷ 5

= 12

$\bar R$ = ( 4 + 5 + 3 + 4 + 2 ) ÷ 5

= 3.6

Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.

A2 = 0.729

$LCL = \bar{\bar{X}} - A2 \bar{R}$

12 - 0.729 × 3.6

= 9.37

5 0

3 years ago

In a process-costing system, the cost of abnormal spoilage should be A. Included in the cost of units transferred out. B. Prorat

Olin [163]

Answer:

D. Treated as a loss in the period incurred.

Explanation:

The process-costing system is used by firms that produce goods that goes through a set of manufacturing departments i.e it's used when firms mass produce nearly identical or similar units through various processes.

Under process-costing system, direct costs of production are accumulated, summarized, and then assigned to all the units produced during the period.

Thus, a single product cost is calculated by dividing process cost in each manufacturing department by the respective units produced during the production period.

Some organizations that use the process-costing system are oil refineries, chemical processing companies, eraser manufacturing companies, and food production companies.

In a process-costing system, the cost of abnormal spoilage should be treated as a loss in the period incurred.

The abnormal spoilage refers to the cost exceeding normal level, associated with spoiled units of a manufacturing process. It should be treated as a loss in the period incurred because it cannot be recovered

4 0

3 years ago

A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable e

jek_recluse [69]

Answer: Decrease by $11,200 per year.

Explanation:

First let's calculate the income if the product is not dropped.

Calculting income would be,

= Sales - Variable Costs - Fixed Costs

= 224,000 - 156,800 - 100,800

= -$33,600

Income(loss) would be a ($33,600) if the product is kept.

If the product is discontinued, it is given that $44,800 in fixed costs will still continue.

These fixed costs cannot be covered in part by the Sales because the product will be discontinued. So that means the net operating Income would simply be a $44,800 loss.

The difference between these 2 options is therefore,

= 44,800 - 33,600

= $11,200

This means that if Product A is stopped, the net operating income will decrease by a further $11,200 because there is no revenue to cover the fixed assets in part. The last option is correct.

7 0

3 years ago

A machine was purchased at a cost of $78,000. The equipment had an estimated useful life of five years and a residual value of $

KiRa [710]

Answer:

Loss on Sale of Equipment = $10,000.

Explanation:

The gain or loss on sale of Property, plant, and Equipment is calculated by comparing Carrying Value (Cost - Accumulated Depreciation) and Sale Proceeds. The carrying value of a machine at the end of 4th year is:

CV = 78,000 - { [ (78,000 - 3,000) / 5 ] * 4} = 78,000 - 60,000 = $18,000.

<u>Calculating Gain/Loss:</u>

Gain / (Loss) = Carrying value - Sales Proceeds = 18,000 - 8,000 = ($10,000).

Because the company has sold a machine worth of $18,000 for $8,000, so it has incurred a loss of $10,000 on the transaction. This loss is recognized in the Statement of Profit or Loss.

6 0

3 years ago