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3 years ago

When determining the cost of a manufactured good under an operation-costing system, a company would:

1 answer:

7 0

A company would trace direct-material cost to each product produced and use a predetermined application rate for conversion cost.

Explanation:

In this operation costing system the cost of the operation and the process cost are in parallel with the conversion cost and when when a company uses this they trace the direct material cost to each of the product produced and they predetermine the application rate of the conversion cost

The raw materials are manufactured in one way and the individual products are manufactured in another way and hence there is a mix of both the jobs and the prices may vary. Hence to avoid this confusion operation costing system was introduced

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The Finishing Department had 11,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to m

8_murik_8 [283]

Answer:

39,700 units.

Explanation:

<em>The transferred units are calculated using physical units.</em>

So the complete % are irrelevant.

11,000 beginning

33,000 started

4,300 ending inventory

11000+33000 = 44000 units worked during the period

ending inventory (4300)

transferred out 39700

8 0

3 years ago

Examples of two goods that are complementary are software and hardware of computers. If the price of computers were to increase,

GREYUIT [131]

Answer: Less

Explanation:

It was given that software and computers are complementary goods. Complementary goods are the goods which are used together to satisfy a given want. There is a inverse relationship between the price of one good and the demand of its complement good. So, if the price of computers increases as a result demand for the software decreases, despite the price of software remains the same.

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3 years ago

How did Ray engage in market planning

Igoryamba

Answer:

Ray calculated how much each seat cost to manufacture and set a wholesale price that covered expenses and earned a reasonable profit. After doing so, Ray developed a channel of distribution including wholesalers and retailers to get the theater seats to consumers.

Explanation:

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2 years ago

CDF Inc. is contemplating the acquisition of Pogo Company. The values of the two companies as separate entities are $20 million

S_A_V [24]

Answer: See explanation

Explanation:

a. What is the gain from merger?

This will be calculated by dividing the cost savings by the opportunity cost of capital. This will be:

= $500,000 / 10%

= $500,000 / 0.1

= $5,000,000

= $5 million

b. What is the cost of the cash offer?

This will be the difference between the cash cash paid and the value of the firm acquired which will be:

= $14 million - $10 million

= $4 million

c. What is the cost of the sock alternative?

First, we calculate the value of the merged company which will be:

= $20 million + $10 million + $5 million

= $35 million

Then, cost of stock alternative will be:

= (35 million x 55%) – $10 million

= ($35 million × 0.55) - $10 million

= $19.25 million - $10 million

= $9.25 million

d. What is the NPV of the acquisition under the cash offer?

This will be:

= $5 million - $4 million

= $1 million

e. What is the NPV under the stock offer?

This will be:

= $5 million - $9.25 million

= -$4.25 million

7 0

3 years ago

Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):

Inessa [10]

Answer: The answer is provided below

Explanation:

a). The revenue here shows that

Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it

later came to $300 which means that the revenue increased.

The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.

) 1. Revenue variance

= Actual Revenues - Static budget

= $ 300 - $ 425

= - $125

2. Volume variance

= Flexible Revenue - Static Budget

= $ 200 - $ 425

= - $ 225

3. Price Variance

= Actual Revenues - Flexible Revenues

=$300 - $200

= $100

4. Enrollment variance

= Flexible Revenues - Static Budget

= $ 180 - $ 425

= - $ 245

5. Utilization variance

= Flexible Revenue- Flexible Budget

= $ 200 - $ 180

= $ 20

4 0

3 years ago

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