Joy Elle’s Vegetable Market had the following transactions during 2010: Issued $50,000 of par value common stock for cash. Repai
1 answer:
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Solution :
A () $ 24 $ 15 $9
B (Material cost per pound) $3 $3 $3
C=A/B (pound of material per unit) 8 5 3
D (Contribution margin per unit) $32 $14 $21
E=D/C (Contribution margin pound $ 4 $ 2.8 $ 7
of raw materials)
Order of preference to allocate material 2nd 3rd 1st
Since the product C has maximize 'contribution margin per pound' it will give 1st preference, followed by the product A and B.
The allocation of the available 5000 pounds of the raw material.
A B C
Maximize units that can be sold (A) 1000 1000 1000
Materials required per unit (B) 8 5 3
Total material requirement (C) 8000 5000 3000
Available raw material in pounds 5000 pounds
(-) first allocation to product C 3000 pounds
Remaining material 2000 pounds
(-) seconds allocation to product A 2000 pounds
Remaining for the product B 0 pounds
Now calculating the total contribution on the above allocation basis.
A B C Total
Material allocated to A(pounds) 2000 0 3000 5000
Contribution per pound (B) $ 4 $2.8 $7
Total contribution margin (AxB) $8000 $0 $21000 $29,000
Therefore, the total contribution margin is $29,000.
Answer:
<u>Sawing: </u> $5.50
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<u>Polishing: </u> $3.00
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Explanation:
We have to solve usign the expected values as the predetermined rate is calcualted before the activities are done.
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<u>Sawing: </u>
expected overhead 275,000
cost driver: machine hours
expected MH 50,000
overhead rate: 275,000 / 50,000 = 5.5
<u>Polishing: </u>
expected overhead 180,000
cost dirver labor hours
expected DL 60,000
overhead rate: 180,000 / 60,000 = 3.0
Answer:
the amount that saved each month is $173.21
Explanation:
The computation of the amount that saved each month is as follows:
Here we use the PMT formula
Given that
NPER = 40 × 12 = 480
PMT = 9.7% ÷ 12 = 0.81%
PV = $0
FV = $1,000,000
The formula is shown below:
= PMT(RATE;NPER;PV;-FV;TYPE)
The future value comes in negative
After applying the above formula, the pmt is $173.21
Hence, the amount that saved each month is $173.21
