1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Minchanka [31]
3 years ago
11

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding an

d trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow.
Molding Trimming
Direct labor hours 52,000 DLH 48,000 DLH
Machine hours 30,500 MH 3,600 MH
Overhead costs $730,000 $590,000

Data for two special order parts to be manufactured by the company in 2017 follow.

Part A27C Part X82B
Number of units 9,800 units 54,500 units
Machine hours Molding 5,100 MH 1,020 MH
Trimming 2,600 MH 650 MH
Direct labor hours Molding 5,500 DLH 2,150 DLH
Trimming 700 DLH 3,500 DLH

Required:
a. Compute the plantwide overhead rate using direct labor hours as the base.
b. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement a.
Business
1 answer:
aksik [14]3 years ago
5 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Molding Trimming

Direct labor hours 52,000 DLH 48,000 DLH= 100,000

Overhead costs $730,000 $590,000= $1,320,000

<u>First, we need to calculate the plantwide predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,320,000/100,000

Predetermined manufacturing overhead rate= $13.2 per direct labor hour

<u>Now, we can allocate overhead to each product line:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Part A27C Part X82B

Direct labor hours Molding 5,500 DLH 2,150 DLH

<u>Part A27C:</u>

Allocated MOH= 5,500*13,2= $72,600

<u>Part X82B:</u>

Allocated MOH= 2,150*13.2= $28,380

You might be interested in
When the LRAC curve has a clear minimum point, then
ladessa [460]

Answer:

The correct answer is a. any firm producing a different quantity will have higher costs .

Explanation:

The LRAC curve determines the relationship between everything assumed by production in order to produce a certain quantity of goods. In this case, when a minimum point is presented, every producing entity will have an increase in costs, because this situation determines an inverse relationship between the two variables studied. in case the fund is flat, it is understood that the company is capable of competing in the market.

4 0
3 years ago
Read 2 more answers
The efficient-market hypothesis:a) has little empirical validity. b) implies that security prices properly reflect information a
Murljashka [212]

Answer:

b) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.

Explanation:

The efficient market hypothesis states that the price of assets in the market reflects all information that is available. This means that it is impossible to gain unfair advantage over others in the market as a result of privileged information about a transaction.

In this scenario a buy and hold strategy will be most effective because investors can buy assets and hold them for a long time regardless of short term fluctuations. Sale is made at a optimal time.

Active traders will be subject to short term fluctuations and will most likely not perform like the buy and hold traders

8 0
3 years ago
Van Den Borsh Corp. has annual sales of $68,735,000, an average inventory level of $15,012,000, and average accounts receivable
Romashka-Z-Leto [24]

Answer:

The answer is d. -32 days.

Explanation:

<u>*The before change cash conversion cycle</u> = Days of inventory outstanding + Days of receivables outstanding - Days of payable outstanding.

in which:

Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( 15,012,000 / ( 68,735,000 x 0.85) ) x 365 = 94 days

Days of receivables outstanding = Average Receivables / Revenue x 365 = ( 10,008,000 / 68,735,000 x 365 = 53 days

Days of payable = 30 days

=> Before change cash conversion cycle = 117 days.

* <u>The after-change cash conversion cycle</u> is calculated with the same formula, however with estimated changes be applied in the formula as followed:

Days of inventory outstanding = Average inventory / Cost of good sold x 365 = ( (15,012,000 - 1,946,000) / ( 68,735,000 x 0.85) ) x 365 = 82 days

Days of receivables outstanding = Average Receivables / Revenue x 365 = ( (10,008,000 - 1,946,000) / 68,735,000 x 365 = 43 days

Days of payable = 40 days

=> After-change cash conversion cycle = 82 + 43 - 40 = 85 days

<u>=> Net change is 85 - 117 = -32 days</u>

6 0
3 years ago
Consider the following three stocks. (a) Stock A is expected to provide a dividend of $10 a share forever. (b) Stock B is expect
Archy [21]

Answer:

The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).

Explanation:

to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.

Let r be the discount rate which is 10%.

a.

The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.

The price of this stock can be calculated as,

Price or P0 =  Dividend / r

P0 = 10 / 0.1  = $100

b.

The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.

P0 = D1 / r - g

Where,

  • D1 is the dividend for the next period
  • r is the cost of equity or discount rate
  • g is the growth rate in dividends

P0 = 5 / (0.1 - 0.04)

P0 = $83.33

c.

The price of this stock can be calculated using the present of dividends.

P0 = 5 / (1+0.1)  +  5 * (1+0.2) / (1+0.1)^2  +  5 * (1+0.2)^2 / (1+0.1)^3  +  

5 * (1+0.2)^3 / (1+0.1)^4  +  5 * (1+0.2)^4 / (1+0.1)^5  +  5 * (1+0.2)^5 / (1+0.1)^6

P0 = $34.28

3 0
3 years ago
Yared plc assembles and sells bicycles in bahir dar city. the company expects to sale 400 bicycles for br. 600 each in 2015. the
enot [183]

a. The number of units to be sold for Yared Plc to break-even is 250 units.

b. The number of units to be sold to earn a target operating income of br. 90,000 is 700 units.

c. The sales amount for Yared Plc to earn a target net income of br. 63,000 is 700 units.

Data and Calculations:

Sales units of bicycles = 400 units

Selling price per unit = br. 600

Total variable costs = br. 160,000

Unit variable cost = br. 400 (br. 160,000/400)

Contribution margin per unit = br. 200 (br. 600 - br. 400)

Fixed costs = br. 50,000

Tax rate = 30%

Net income = income after tax

= 1 - 30%

= 70%

a. The number of units to be sold for Yared Plc to break-even is given by Fixed Costs/Contribution margin per unit

= br. 50,000/br. 200

= 250 units.

b. The number of units to be sold to earn a target operating income of br. 90,000 is given as (Fixed Costs + Target Profit)/Contribution margin per unit

= (br. 50,000 + br. 90,000)/br. 200

= br. 140,000/br. 200

= 700 units.

c. The sales amount for Yared Plc to earn a target net income of br. 63,000 is (br. 50,000 + br. 63,000/(1 - 30%)/br. 200

= (br. 50,000 + br. 90,000)/br. 200

= br. 140,000/br. 200

= 700 units.

Learn more about contribution margin and target profit here: brainly.com/question/25638811

3 0
2 years ago
Other questions:
  • Hannah is the ceo of jf corp., a steel manufacturing company. she finds that the market is exhibiting the signs of a maturing ma
    8·1 answer
  • Big Canyon Enterprises has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and a p
    9·1 answer
  • Carlin and Marley, an accounting firm, provides consulting and tax planningservices. For many years, the firm's total administra
    14·1 answer
  • Cory opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Cory i
    11·1 answer
  • A person who invests in a business but takes no part in the day to day operations of the business is called a(n)
    9·1 answer
  • Every tangible product is made up of what? (Select the best answer.)
    6·1 answer
  • One reason for not requiring a balanced federal budget at all times is that with a balanced-budget rule:_________.
    12·1 answer
  • An inexperienced accountant for Riverbed Corp showed the following in the income statement: income before income taxes $258,000
    13·1 answer
  • Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the
    6·1 answer
  • On a loan of $32,000 at 7% interest for 6 months, how much do you wind up paying to pay off the loan?.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!