Answer:
<u>(a) as either fixed or variable</u>
fixed
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
variable
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
<u>(b) as either direct or indirect</u>
direct
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
indirect
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
Explanation:
Fixed Costs are constant for any production level. Variable Costs vary directly with production.
Direct Costs are easily traced to the product manufactured. Indirect costs are not easily traced and they need to be allocated to Products manufactured.
Answer:
Date Account Titles and Explanation Debit Credit
Bonds payable $1,000,000
Loss on retirement of bond $13,000
[$1,050,000 - $1,037,000]
Premium on bond $37,000
Cash (1,000,000*105%) $1,050,000
(Record the retirement of the bonds, using a premium account)
Answer:
The multiple choices are:
$5,589.04
$7,452.05
$4,890.41
$5,876.71
$6,410.96
Amount invested in K is $6,410.96
Explanation:
L+K=12,000
from the return perspective
0.0975=K/12000*0.0805+L/12000*0.117
K=12000-L
Substitute for K in the second equation
0.0975=(12000-L)/12000*0.0805+L/12000*0.117
0.0975=(966-0.0805L)/12000+0.117L/12000
0.0975=(966-0.0805L+0.117L)/12000
12000*0.0975=966+0.0365
L
1170
-966=0.0365L
204=0.0365L
L=204/0.0365
L=$ 5,589.04
K=$12,000-$ 5,589.04
K=$6,410.96
Kevin must take in $2,500 into his gross income. This is for
the reason that the $13,000 ($70,000 -$57,000) discount got on the M3 is bigger
than the qualified employee discount of$10,500 (sales price of $70,000 multiplied
by the average gross profit percentage of 15%). There is no gross income from
the acquisition of the 530 because the $9,000 ($63,000 - $54,000) reduction is
less than the qualified employee discount of $9,450 ($63,000 multiplied by the
average gross profit percentage of 15%).
Answer:
Decrease in Net operating income ($30,000)
Explanation:
The computation of the change in net operating income is shown below:
Particulars Rubber Division
Lost of Contribution margin ($100,000)
Savings from avoidable fixed costs :
Traceable fixed costs $70,000
Decrease in Net operating income ($30,000)
We simply deduct the traceable fixed cost from the loss of contribution margin so that the change in net operating income could come
