Capital budgeting is concerned with the month to month investments of a firm true or false

Woodland industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based cost

MaRussiya [10]

Answer:

Explanation:

a.

Direct materials 101,500

Direct labour (13,600 * 13) 176, 800

Materials handling (508 * 0.28) 142.24

Cutting and lathe work (508 * 12.32) 6258.56

Assembly and inspection (13,600 * 17.5) 238,000

Total manufacturing cost 522,700.8

Cost per unit produced = 522,700.8 / 3,050 =

= 171.377 per unit.

b.

Predetermined overhead rate = Estimated overhead costs / Estimated Direct labour hours

(61,600 + 2,710,400 + 3,850,000) / 220,000

= 30.1 per direct labour hour

Direct materials 101,500

Direct labour (13,600 * 13) 176,800

Manufacturing overhead (13,600 * 30.1) 409,360

Total manufacturing cost 687,660

Cost per unit produced = 687,660/ 3,050

= 225.46 per unit.

3 0

4 years ago

Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual di

Ludmilka [50]

Answer:

$28.57

Explanation:

Current price = D1/(Required return-Growth rate)

D1 (Next dividend) = $2

Required return = 10% = 0.1

Growth rate = 3% = 0.03

Current price = $2/(0.1-0.03)

Current price = $2 / 0.07

Current price = $28.57143

Current price = $28.57

Hence, i will be willing to pay $28.57 for a share of Merck stock.

8 0

4 years ago

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128

a_sh-v [17]

Answer:

The $623,100 is the amount which should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

= Estimated cost of a new facility on the site + market value of a lot

= $494,200 + $128,900

= $623,100

The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.

The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.

4 0

3 years ago

A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin an

kakasveta [241]

Answer:

The optimal stocking level is 45 muffins.

Explanation:

First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2

Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60

Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75

Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)

optimal stocking level = 30 + 0.75*(50-30) = 45

The optimal stocking level is 45 muffins.

Optimal stocking level = 68.75 Muffins

5 0

3 years ago

The primary benefit of a MINIMAX objective function is

sladkih [1.3K]

Answer:

The correct answer is letter "C": it yields a larger variety of solutions than generally available using an LP method.

Explanation:

In Goal Programming (GP), the MINIMAX objective aims to minimize the maximum deviation from any type of objective. This approach carries a larger number of solutions compared to the Linear Programming (LP) method which mainly focuses on assigning more weight to each goal in the objective function.

4 0

3 years ago