Answer:
POAR = $29 per hour
Explanation:
<em>The overhead absorption is a per-determined rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures</em>
The rate is computed as follows:
Pre-determined overhead absorption rate (POAR)
POAR = Budgeted overhead for the period/Budgeted direct labour hours
= $145,000/5,000 labour hours
= $29 per hour
Answer:
$250 million
Explanation:
If taxes do not exist and the firm has no outstanding debt, then the value of unlevered firm = total enterprise value of BDE
we can use the perpetuity formula to determine the total enterprise value:
total enterprise value = FCF / cost of equity
total enterprise value = $25 million / 10% = $250 million
Answer:
14-Jan
Dr Trade Receivable $1,125
Cr Sales
14-jan
Dr Cost of sales 625
Cr Inventory 625
9-Apr
Dr Inventory 375
Cr Trade Payable 375
2-Sep
Dr Trade Receivable $2,500
Cr Sales $2,500
2 sep
Dr Cost of sales $1,375
Cr Inventory $1,375
Dec 31 No journal entry
Explanation:
Preparation to Records the month-end journal entries noted below, assuming the company uses a periodic inventory system
14-Jan
Dr Trade Receivable $1,125
Cr Sales (45*25)
14-jan
Dr Cost of sales[25*25] 625
Cr Inventory 625
9-Apr
Dr Inventory (25*$15) 375
Cr Trade Payable 375
2-Sep
Dr Trade Receivable $2,500
Cr Sales (50*50) $2,500
2 Sep
Dr Cost of sales $1,375
Cr Inventory $1,375
($2,500-$1,125)
Dec 31 No journal entry
Answer: $57,000
Explanation:
Given that,
Beginning finished goods inventory in units = 0
Units produced = 7,000
Units sold = 5,100
Sales = $663,000
Materials cost = $140,000
Variable conversion cost used = $70,000
Fixed manufacturing cost = $490,000
Indirect operating costs (fixed) = $102,000
Total Variable cost of units produced = Materials cost + Variable conversion cost used
= $140,000 + $70,000
= $210,000
=
= $30
Units in ending inventory = Units produced - Units sold
= 7,000 - 5,100
= 1,900
Value of Variable costing ending inventory = Units in ending inventory × Variable cost per unit
= 1,900 × $30
= $57,000
Answer:
Garbage-can model
Explanation:
The decision-making models that best describe how decision-making takes place in the research and development laboratory of a major drug company is the Garbage-can model, this is because the research and development laboratory is a complex and unstable environment
decisions taken in a research laboratory are mainly unpredictable and uncertain as most solution are turned in problems first before another solution can be created
