Answer:
$42,500 payments at the beginning of each of the next twenty-five years. Assuming Wither Spoon Company's borrowing costs are 8% per annum
Explanation:
Assuming Wither Spoon Company's borrowing costs are 8% per annum
th e option that is least costly to the company is Location C because it only requires $42,500 payments at the beginning of each of the next twenty-five years.
Hence Location A which may be purchased immediately for $500,000 cash and Location B which may be acquired with an immediate down payment of $100,000 and annual payments of $39,900 at the end of each of the next twenty years are not the best option for the company to choose from which therefore makes LOCATION C the best option for Wither Spoon Company because it save cost as as well the least costly to the company.
Answer:
$953 per unit
Explanation:
For computing the average cost per unit first we have to determine the operating capacity at 85% after that the total cost which is shown below:
Operating capacity at 85% is
= 300 computers × 85%
= 255 computers
Now the total cost is
= Variable cost + Fixed cost
where,
Variable cost is
= $660 × 255 computers
= $168,300
And, the fixed cost is $74,700
So, the total cost is
= $168,300 + $74,700
= $243,000
Now the average cost per unit is
= $243,000 ÷ 255 computers
= $953 per unit
Based on the fact that Kay Company will use direct labor hours as its overhead allocation base, the overhead for a product with 5 labor hours is $228.
<h3>What is the overhead assigned to the product?</h3>
This can be found as:
= Total overhead cost / Number of labor hours x Product labor hours
Solving gives:
= 4,104,000 / 90,000 x 5
= 45.6 x 5
= $228
Find out more on assigning overhead costs at brainly.com/question/22812280.
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Answer:
(C) $745
Explanation:
The computation is given below:
For computing the bad debt expense, first we have to determine the ending account receivable balance which is shown below:
Ending account receivable balance = Beginning account receivable + credit sales - collections -
written off amount
= $20,000 + $70,000 - $74,700 - $400
= $15,300
So, the bad debt expense is
= Ending account receivable × given percentage
= $15,300 × 5%
= $745
