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3 years ago

The manufacturing cost of Calico Industries for three months of the year are provided below:

Business

1 answer:

Delvig [45]3 years ago

4 0

Answer:

b. $0.40 per unit and $8,000

Explanation:

High low method separates the fixed cost and variable cost using net of Highest activity level and Lowest activity level and net of their relevant costs.

According to High low method

Variable cost per unit = ( Highest activity cost - Lowest activity cost ) / ( Highest Activity - Lowest activity )

Variable cost per unit = ( $120,000 - $74,000 ) / ( 280,000 - 165,000 )

Variable cost per unit = $46,000 / 115,000

Variable cost per unit = $0.4

Fixed operating cost = Total cost - Total Variable cost = $120,000 - ( 280,000 x $0.4 ) = $8,000

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Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on

labwork [276]

Answer:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

Explanation:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

1. Garage rent is fixed Manufacturing Overhead because he will pay a fixed rent amount every month.

2. Utilities is fixed Manufacturing Overhead because he will pay a fixed amount every month.

3. Cost of the industrial design course is Sunk because the cost has been spent already

4. Equipment rented is fixed Manufacturing Overhead because he will pay a fixed amount every month.

5. Material cost is variable because it will depend on how much produced every month.

6. Labor cost is variable because it will depend on how much produced every month.

7. Present salary is an Opportunity cost because wont earn salary anymore when he starts the business; this is also differential because it is the difference between the cost of the two alternative decisions

Advertising is a fixed Selling costs because he will pay a fixed amount every month and it is related to sales not production.

4 0

3 years ago

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departme

Advocard [28]

Answer:

From this description, it can be inferred that Fantastic Flavors uses a(n) Team-based new-product developmen approach

Explanation:

Team-based new-product development is an approach to developing new products in which company departments work closely together in cross-functional teams, overlapping the steps in the product development process to save time and increase effectiveness

7 0

3 years ago

Land, a building and equipment are acquired for a lump sum of $1,000,000. The market values of the land, building and equipment

sergij07 [2.7K]

Answer:

The answer is option (b). $250,000

Explanation:

Step 1: Determine total market value

The expression for the total market value is;

Total market value=land value+building value+equipment value

where;

land value=$300,00

building value=$600,000

equipment value=$300,000

replacing;

Total market value=(300,000+600,000+300,000)=$1,200,000

Total market value=$1,200,000

Step 2: Determine fraction of the total market value that is equipment

Equipment fraction=equipment value/total market value

where;

equipment value=$300,000

total market value=$1,200,000

replacing;

Equipment fraction=300,000/1,200,000=0.25

Step 3: Determine cost assigned to the equipment

Cost assigned to the equipment=equipment fraction×lump sum

where;

equipment fraction=0.25

lump sum=$1,000,000

replacing;

Cost assigned to the equipment=(0.25×1,000,000)=250,000

Cost assigned to the equipment=$250,000

3 0

3 years ago

Was the time period between 400ad and 1400ad a dark age for europe? was this a time of cultural decay and decline?

eduard

AD was a dark age and a period of cultural decay and decline for Europe because there was barely a government, harsh punishments, ignorant people, not a lot of land, and there was a lot of killing and diseases going around Europe that cause Europe to decline in population.

8 0

3 years ago

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:

ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

<u>Explanation: </u>

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

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3 years ago