Answer:
Supplier's quotation (2,400 x $6.25) 150,000
Less: Relevant cost of production:
Direct material (2,400 x $31) 74,400
Direct labour (2,400 x $18) 43,200
Variable overhead (2,400 x $9) <u>21,600</u> <u>139,200</u>
Savings <u> 10,800</u>
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
Answer:
The person may not have options due to age and distance and disabilities.
Explanation
Answer:
D. $605,500
Explanation:
At the end of 2014, the Retained Earning balance was $533,000. This serves as our beginning balance for the year 2015.
Furthermore, Dividends are expected to be paid out, i.e. a deduction on the balance sheet.
Retained Earnings on the 2015 budgeted balance sheet = Beginning Balance + Expected Net Income - Expected Dividend
=533,500+112,000-40,000
=$605,500
Answer:
Present
Explanation:
An outlay cost is a cost incurred at the time when we have to execute the strategy or purchasing an asset. It can be paid to the vendors for purchasing the goods like for inventory. So this cost should be recognized as an expense when they are incurred in order to earn the revenue in the current or present accounting period
I think the answer is either a or c
