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pogonyaev
3 years ago
5

Tunnel Incorporated provided the following information regarding its single​ product: Direct materials used $ 250 comma 000 Dire

ct labor incurred $ 470 comma 000 Variable manufacturing overhead $ 120 comma 000 Fixed manufacturing overhead ​$100,000 Variable selling and administrative expenses $ 65 comma 000 Fixed selling and administrative expenses ​$20,000 The regular selling price for the product is​ $80. The annual quantity of units produced and sold is 43 comma 000 units​ (the costs above relate to the 43 comma 000 units production​ level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 9 comma 500 units at a sale price of $ 52 per product assuming additional fixed manufacturing overhead costs of $ 11 comma 000 are​ incurred? (Round any intermediary calculations to the nearest​ cent.)
Business
1 answer:
Paha777 [63]3 years ago
8 0

Answer:

increase of $283,058

Explanation:

Consider the incremental Costs and Revenues arising from accepting a special order.

The company has excess capacity therefore, the current fixed overheads would be irrelevant (will have been incurred whether or not the special order is accepted. Also fixed expenses are irrelevant since regular sales will not be affected by this special order.

Sales (9,500× 52)                                                                                  494,000

Direct materials (250,000/43,000×9,500)                                           (55,233)

Direct labor (470,000/43,000×9,500)                                                 (103,837)

Variable manufacturing overhead (120,000/43,000×9,500)               (26,512)

Variable selling and administrative (65,000/43,000×9,500)               (14,360)

Additional fixed manufacturing overhead costs                                    (11,000)

Net Income                                                                                             283,058

Therefore an increase of $283,058 would be expected  from accepting a special order.

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Answer: a. Liabilities increased by $1.0 million in 2018

Explanation:

In 2018, $9 million was used to settle the wage debt of 2017 and the remainder was used to settle the wages in 2018.

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= -$1,000,000

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Zoe Corporation has the following information for the month of March: cost of direct materials used in product $15,401,direct la
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Answers:

Calculation of cost of goods manufactured:

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Cost of direct material                                    $15,401

Add: Direct labour                                           $24,583

Add: Factory overhead                                   $35,335

Add: Work In process inventory, March 1      $20,021

Less: Work in process inventory, March 31   <u>$20,681</u>

Cost of goods manufactured                        <u>$74,659</u>

Calculation of Cost of goods sold:

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Cost of goods manufactured                        $74,659

Add: Finished goods inventory, March 1      $24,889

Less: Finished goods inventory, March 31   <u>$27,311   </u>

Cost of goods sold                                        <u>$72,237</u>

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3 years ago
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900,000 for year 1. The
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Answer:

Job 301    $   11,000

Job 302   $  16,500

Job 303   $ 22,000

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

To calculate the overhead rate <u>we divide the estimated overhead cost by the estimated cost driver:</u>

\frac{495,000}{900,000}= Overhead \:Rate

0.55 overhead rate

Job 301 $20,000 labor cost x 0.55 overhead rate

11,000

Job 302 $30,000 labor cost x 0.55 overhead rate

16,500

Job 303 $40,000 labor cost x 0.55 overhead rate

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Answer:

Good rental history and employment stability are two things that help to bulid a good credit score.

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1 year ago
Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.9%, compounded monthly. The loan (principal plus interest) m
san4es73 [151]

Answer:

0.98%

Explanation:

Note: Options provided is slightly different for this question

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Hence, higher EAR  charged by Woodburn versus the rate charged by Southwestern = (8.1% - 7.12%) = 0.98%

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