Answer: $12000
Explanation:
The amount of interest should Turnbull include in the cost of the building from the current period will be calculated as the outstanding debt multiplied by the interest rate. This will be:
= $200,000 × 6%
= $200,000 × 6/100
= $200,000 × 0.06
= $12,000
Therefore, the correct option is C.
Answer:
III) Increase its gross margin
Explanation:
If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.
The only option that increases the value of the company is to increase its net profit, since:
- an increase in inventory will result in a lower stock price
- a decrease in the asset turnover ratio will result in a lower stock price
- the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
Answer:
$94.10 per unit
Explanation:
Total direct labor-hours 10,000
Total fixed manufacturing overhead cost $33,000
Variable manufacturing overhead per direct labor-hour $2.50
Job K332:
Number of units in the job 70
Total direct labor-hours 140
Direct materials $455
Direct labor cost $5,320
total variable overhead = $2.50 x 140 = $350
prorated fixed overhead = (total fixed overhead / total direct labor hours) x direct labor hours used = ($33,000 / 10,000) x 140 = $462
total product cost = direct labor + direct materials + variable overhead + prorated fixed overhead = $5,320 + $455 + $350 + $462 = $6,587
product cost per unit = $6,587 / 70 units = $94.10 per unit
