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3 years ago

LO 2.2Which of the following are prime costs?

Business

1 answer:

sesenic [268]3 years ago

4 0

Answer:

OPTION D: Direct Labor and Direct Material

Explanation:

Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS .

Prime Cost = Direct Material Cost + Direct Labor Cost

Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.

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Hot Shot Delivery Inc. provides the following year end data:

saw5 [17]

Answer:

27.3%

Explanation:

rate of retun on assets:

$\frac{Income}{Assets} = $Assets rate of return$

where:

Net income: 112,000

2018 Assets: 410,000

$\frac{112,000}{410,000} = $Assets rate of return$

$Assets rate of return 0.2731707317073171‬ = 27.32%

During 2018 each dollar of assets generate 27.32 cents of income.

3 0

3 years ago

Static Budget Actual Units 5,000 5,100 Sales revenue $60,000 $58,650 Variable manufacturing costs $15,000 $16,320 Fixed manufact

Ipatiy [6.2K]

Answer:

$700 favorable

Explanation:

Calculation to determine what The total sales-volume variance for operating income for the month of July would be

First step is to calculate the of contribution per unit using this formula

Contribution Margin per unit

=Sales− Variable manufacturing costs−Variable marketing and administrative expense/units

Let plug in the formula

Contribution Margin per unit=$60,000−$15,000−$10,000/5,000units

Contribution Margin per unit=$7per unit

Now let calculate the total sales-volume variance using this formula

Total sales volume variance

= Actual units−Static Budget × Static contribution margin per unit

Let plug in the formula

Total sales volume variance=5,100units−5,000units×$7

Total sales volume variance=$700 favorable

Therefore The total sales-volume variance for operating income for the month of July would be

$700 favorable

3 0

3 years ago

When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversi

alisha [4.7K]

Answer: a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs.

Explanation:

When the cost of production report is being used to analyze change in direct materials cost per equivalent unit when compared to the conversion cost per equivalent unit, we should note that an investigation may end up showing that the fluctuation in the the direct materials costs which then brings about an increase or a decrease.

Therefore, the correct option is A "may increase while conversion costs decrease because the two are separately calculated and depend on separate costs".

5 0

3 years ago

What is one strong, positive motivator in building the family business that leads to greater cooperation? A. The family members’

AURORKA [14]

The answer would be D or C

3 0

3 years ago

Edinburgh Exports has two divisions, L and H. Division L is the company’s low-risk division and would have a weighted average co

Gnoma [55]

Answer:

Part 1. B Reject

Part 2. Division H's project should be rejected, because its return is less than the risk-based cost of capital for the division.

Explanation:

Division H's project should be rejected, because its return is less than the risk-based cost of capital for the division.

4 0

3 years ago