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grigory [225]
3 years ago
12

Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $480,

000. Anderson produced 20,000 pounds of Gorp, which sells for $60 per gallon and 60,000 gallons of Gumm, which sells for $30 per gallon. After the split-off point, Gorp required additional processing costing $300,000 to make it salable. Using the adjusted sales method, how much of the joint cost should be allocated to Gorp?Select one:a. $120,000b. $320,000c. $160,000d. $192,000
Business
1 answer:
Olin [163]3 years ago
3 0

Answer:

b. 320000

Explanation:

In order to calculate the joint cost of Gorp we need to understand what the method means and how it's used to calculate it. The adjusted sales method is used to allocate joint costs based on the prices the products are sold.

First of all we need to calculate the percentage of Selling price of Gorp to that of the total selling price of both Gorp and Gumm.

I.e: 60 ÷ (60+30) × 100

SP % of Gorp= 66.67%

Now we calculate joint cost allocated to Gorp.

Total joint cost of both Gorp and Gumm = $480000

Joint cost of Gorp = $480000 × 66.67%

Joint cost of Gorp = $320,000

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Answer:

Firm should hire the 4th worker as MR > MC.

Explanation:

Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.

Marginal cost of hiring 4th worker:

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Total revenue generated by the 4th worker:

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Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.

3 0
3 years ago
Denmark is a good example of a nation-state because:.
inna [77]

Denmark is a good example of a nation-state because nearly all Danes speak D.anish and live in Denmark.

<h3>What is nation-state?</h3>

Basically, a nation-state refers to sovereignty or state that is ruled in the name of a community of citizens that identify themselves as a nation.

Generally, the main component of a nation-state is presence of only one culture and language.

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8 0
2 years ago
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply ov
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Answer:

Under/over allocation= $6,850 overallocated

Explanation:

Giving the following information:

The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 153,000 and estimated factory overhead is $1,208,700.

The following information is for September:

Direct labor hours: Job X 9,000 Job Y 7,500

Labor costs incurred: Direct labor ($8.00 per hour) $ 132,000

Manufacturing overhead costs:

Indirect labor 56,000

Factory supervisory salaries 13,100

Rental costs:

Factory $ 11,300

Total equipment depreciation costs:

Factory $ 12,400

Indirect materials used $ 30,700

Total= 123,500

First, we need to determine the manufacturing overhead rate:

manufacturing overhead rate= total estimated manufacturing overhead/ total amount of allocation base

manufacturing overhead rate= 1208700/ 153000= $7.9 per direct labor hour

Allocated overhead= manufacturing overhead rate* actual allocation base= 7.9* 16500 hours= $130,350

Under/over allocation= real overhead - allocated overhead

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6 0
3 years ago
A firm follows a(n) ________ when less than 70 percent of its revenues come from a single business and there are few, if any, li
zysi [14]

Answer:

A. Unrelated diversification strategy

Explanation:

A firm follows an unrelated diversification strategy when less than 70 percent of its revenues come from a single business and there are few, if any, linkages among its businesses.

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2.Unrelated Diversification: This form of diversification occurs when a firm adds unrelated product lines and penetrates new markets. The new product introduced has to relation or connection with the the previous or existing product.

Unrelated diversification can be accomplished using the following methods:

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5 0
3 years ago
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ivanzaharov [21]

Answer:

$155.000

Explanation:

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Net income= $155.000

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