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Stolb23 [73]
3 years ago
9

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a

nd costs for March follow:
Basic Dominator Total
Units produced 1,500 250 1,750
Machine-hours 4,000 2,000 6,000
Direct labor-hours 4,000 2,000 6,000
Direct materials costs $ 11,000 $ 3,500 $ 14,500
Direct labor costs 72,000 34,000 106,000
Manufacturing overhead costs 188,786
Total costs $ 309,286

Required:

Compute the individual product costs per unit assuming that Tiger Furnishings uses direct labor costs to allocate overhead to the products. (Do not round intermediate calculations. Round final answers to 2 decimal places.
Business
1 answer:
VARVARA [1.3K]3 years ago
7 0

Answer:

Basic = $140.82

Dominator = $392.216

Explanation:

For Basic:

Total cost for Basic:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $ 11,000 + $72,000 + $128,232

= $211,232

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $211,232 ÷ 1,500

= $140.82

For Dominator:

Total cost for Dominator:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $3,500 + $34,000 + $60,554

= $98,054

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $98,054 ÷ 250

= $392.216

Workings:

Manufacturing overhead (Basic):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($72,000 ÷ $106,000)

= $128,232

Manufacturing overhead (Dominator):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($34,000 ÷ $106,000)

= $60,554

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Suppose we observe that as the price of lettuce increases from $1 to $2 per head, consumers buy only half the number of heads of
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C. A decrease in the quantity demanded

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<u>When the demand of a product is sensitive to the changes in price, then we say that price of the product is elastic</u> but if the product demand not strongly influenced  by price then we say that the pricing is inelastic.

In the case of the lettuce, we can say that the price is elastic, because there is a sensitive reaction between an increase in price from $1 to $2 which immediately leads to a halfing of the quantity demanded. The price is elastic such that an increase in price leads to a decrease in quantity demanded.

8 0
3 years ago
You receive five annual cash flows of $10,000 with the first cash flow being received today and the last cash flow occurring 4 y
ivanzaharov [21]

Answer:

FV= $75,437.02

Explanation:

Giving the following information:

Number of cash flows= 5

Cash flow= $10,000

Total number of periods= 10 years

Interest rate= 6% compounded annually

<u>First, we need to calculate the future value of the 5 cash flows in 5 years using the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

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FV= {10,000*[(1.06^5) - 1]} / 0.06

FV= $56,370.93

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7 0
3 years ago
Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells fo
Tju [1.3M]

Answer: Price of stock at year end =$53

Explanation:

we first compute the Expected rate of return using the CAPM FORMULAE that

Expected return =risk-free rate + Beta ( Market return - risk free rate)

Expected return=6% + 1.2 ( 16%-6%)

Expected return= 0.06 + 1.2 (10%)

Expected return=0.06+ 0.12

Expected return=0.18

Using the formulae Po= D1 / R-g  to find the growth rate

Where Po= current price of stock at $50

D1= Dividend at $6 at end of year

R = Expected return = 0.18

50= 6/ 0.18-g

50(0.18-g) =6

9-50g=6

50g=9-6

g= 3/50

g=0.06 = 6%

Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.

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= 6( 1+0.06)/ 0.18 -0.06

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=6.36/0.12=  $53

3 0
3 years ago
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