Answer:
Year 2= $3,333.33
Explanation:
Giving the following information:
A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.
To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*[(24,000 - 9,000)/6]= 5,000
Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33
Answer:
Income will increase by $84.
Explanation:
<u>The break-even point is the number of units required to cover the fixed costs. Net income is zero.</u>
First, we need to calculate the unitary variable cost:
Unitary variable cost= 120*0.3= $36
<u>Now, the unitary contribution margin:</u>
unitary contribution margin= 120 - 36
unitary contribution margin= $84
Income will increase by $84.
<span>Define what is meant by the phrase "planning materiality threshold".
Planning materiality threshold is defined as the complete materiality level for the financial statements in internal control. The auditor will establish a materiality level that is best based on the situation regarding the nature, extent and timing of the audit procedures. </span>
Answer:
a. $3.13 per unit
b. No
c Yes
Explanation:
The computation is shown below
a. Fixed overhead per unit is
= Fixed overhead ÷ Number of units manufactured
= $363,000 ÷ 116,000 units
= $3.13 per unit
b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost
c. Now the acceptance of the offer should be based on total relevant cost which is
Total relevant cost
= $6.1 + $6.1 + $8.1
= $20.3
Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50
