What is the process of researching or studying a concept?

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass

lukranit [14]

Answer and Explanation:

The classification is as follows;

1. Since the wages are to paid for supervising the assembling process so the same is related to the factory operations therefore considered to be the manufacturing overhead cost

2. The wages paid to the accountant so classified as the administration cost

3. The depreciation is the manufacturing overhead cost as it is the indirect cost.

4. The rent facility should be classified as the manufacturing overhead cost and distributed as per the cost drivers.

3 0

2 years ago

Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs o

Gnesinka [82]

Answer:

Using equation method we have,

Sales - variable cost = Fixed Cost

Let number of units be X, at break even then,

$150 X - ($60 + $18) X = ($480,000 + $240,000)

$150 X - $78 X = $720,000

$72 X = $720,000

X = $720,000/$72 = 10,000 units.

Using contribution income statement

Contribution margin per unit approach = Selling price - Variable cost = Contribution = $150 - $60 - $18 = $72 per unit

Total fixed cost = Fixed Manufacturing cost + Fixed Selling & Administrative

= $480,000 + $240,000 = $720,000

Break Even Point = $\frac{Fixed\ Cost}{Contribution\ Per\ Unit}$

= $\frac{720,000}{72} = 10,000$

Contribution margin Income Statement:

Sales value = $150 $\times$ 10,000 = $1,500,000

Less: Variable Cost

Manufacturing = $60 $\times$ 10,000 = ($600,000)

Selling Expense = $18 $\times$ 10,000 = ($180,000)

Contribution Margin = $720,000

Less: Fixed Cost

Fixed Manufacturing Cost = ($480,000)

Fixed Selling Expense = ($240,000)

Profit = $0

8 0

3 years ago

"S Company reported net income for 2021 in the amount of $460,000. The company's financial statements also included the followin

jekas [21]

Answer:

$633,000

Explanation:

Calculation to determine net cash provided by operating activities under the indirect method

Using this formula

Net cash provided by operating activities=Net income-(+Increase in accounts receivable)-(-Decrease in inventory )+Increase in accounts payable+Depreciation expense -Gain on sale of land

Let plug in the formula

Net cash provided by operating activities=$460,000 -(+$75,000)-(-$62,000) + $230,000 +$103,000 - $147,000

Net cash provided by operating activities=$633,000

Therefore net cash provided by operating activities under the indirect method is $633,000

3 0

3 years ago

When Sydney borrowed $8000 from her parents, they made her give them some collateral. What would be the MOST logical thing for S

adell [148]

Sign an agreement to pay pack $9000

5 0

2 years ago

Assume an increase in investment spending by $100, and a marginal propensity to consume (MPC) of 0.6. How much would GDP increas

maw [93]

Answer:

The increase in GDP is $250

Explanation:

The increase in investment spending = $100

Marginal propensity to consume = 0.6

Now we have to find an increase in the GDP after absorbing the $100.

Therefore, we need to find the multiplier by using the marginal propensity to consume.

Multiplier = 1 / (1-MPC)

Multiplier = 1/( 1- 0.6)

Multiplier = 2.5

The increase in GDP = increase in investment spending × Multiplier

The increase in GDP = 100 × 2.5 = $250

7 0

2 years ago