Answer:
Adriana Corporation
Using the High and Low method the Variable and Fixed portions of the Total Cost is:
Fixed Costs = $247,420
Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790
B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)
= $543,670
Explanation:
The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)
It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low
The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs
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Answer:
A. $192,000
Explanation:
The computation of the labor related overhead cost is shown below:
= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X
= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours
= $192,000
hence, the correct option is A.
Answer:
See below
Explanation:
1. Complete accrual basis income statement
Sales
($28,000 + $3,000)
$31,000
Less cost of goods sold
($13,000 + $2,000 - $3,000)
-$12,000
Operating expenses
($9,000 - $2,000)
-$7,000
Depreciation expenses
-$4,000
Income tax
($4,000 + $1,000)
-$5,000
Amortization expense
-$1,000
Gain on sale of equipment
$2,000
Net income
$4,000
2. Cash flow statement (Indirect)
Net income
$4,000
Adjustments;
Add depreciation
$4,000
Add write off intangibles
$1,000
Less gain on sale of equipment
-$2,000
Less increase in accounts receivables
-$3,000
Less increase in inventory
-$3,000
Add increase in accounts payable
$2,000
Less decrease in accrued payable
-$2,000
Add increase in deferred income tax payable
$1,000
Net cash from operations $2,000
Answer:
The four main environmental issues that are most likely to influence the activities of a business are climate change, pollution, sustainability and waste reduction.
Explanation:
Answer:
The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.
Explanation:
The shareholder's equity can be defined as the net value of a company. It basically is the amount that shareholders would receive if all the company's assets were liquidated and all of the company's debt also paid back. The shareholder's equity is usually found on the company's balance sheet and can be used as a financial measure to determine the company's financial status. The shareholder's equity is determined from subtracting the company's totals liabilities from its total assets. This can be expressed in the formula below;
E=A-L....equation 1
where;
E=shareholder's equity
A=total assets
L=total liabilities
The total assets represents everything that has some economic value to the company. A liability is an obligation to something or anything of economic value that the company owes. In our case, the company has an obligation to pay it's creditors $6,460 at the end of they year. This is a liability.
Use equation 1 above to solve;
E=unknown, to be determined
A=$6,304
L=$6,460
replacing;
E=(6,304-6,460)=-$156
The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.
