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saul85 [17]
3 years ago
14

Part U16 is used by Mcvean Corporation to make one of its products. A total of 20,500 units of this part are produced and used e

very year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 4.40 Direct labor $ 9.00 Variable manufacturing overhead $ 9.50 Supervisor's salary $ 4.90 Depreciation of special equipment $ 3.30 Allocated general overhead $ 8.50 An outside supplier has offered to make the part and sell it to the company for $30.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $32,500 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Business
1 answer:
Brut [27]3 years ago
8 0

Answer:

Annual financial disadvantage = -$26,950

Explanation:

As per the data given in the question,

Cost of manufacturing = ((Direct material + direct labor + variable manufacturing overhead + supervisor's salary) × no. of units) + Opportunity cost

= (($4.4+$9.00+$9.50+$4.90) × 20,500)+$32,500

= $602,400

Cost of purchasing = 20,500 × $30.70

=$629,350

Financial disadvantage = Cost of manufacturing - cost of purchasing  

=$602400 - $629,350

= -$26,950  which indicates disadvantage

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A company's beginning Work in Process inventory consisted of 37,000 units that were 90% complete with respect to direct labor. A
pychu [463]

Answer:

128,000 units

Explanation:

The calculation of the equivalent units of production using the weighted average method is given below:

= Total units of finished goods × completion percentage + ending work in process units × completion percentage

= 107,000 units × 100% + 42,000 units × 50%

= 107,000 units + 21,000 units

= 128,000 units

Hence, the equivalent units of production of direct labor is 128,000 units.

8 0
3 years ago
Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg
iVinArrow [24]

Answer:

Option D. $10,000 is the correct answer.

Explanation:

Journal Entry for pension expenses:

Pension Expense                                  $10,000

     Cash                                                 $10,000

(To record pension expenses)

Pension expenses for the year ended is comprised of the following components of pension cost.

Service Cost                                           $14,000

Interest cost                                            $6,000

Expected return on plan assets            $10,000

                                                            __________

Pension expenses                                  $10,000

3 0
3 years ago
1. Assume that the money demand function is (M / P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M
Wittaler [7]

Answer:

r= 3

Explanation:

Due that the level price does not changed, the first thing that you have to do to find the equilibrium is put the two equations with an equal

Money demand =Supply of money

2,200 – 200 r= 2,000

Now you have to find the value of r and you have to clear the formula and first you have to:

2,800- 2,200 = 200r

Now that you have the number together you have to apply the operation

600 = 200r

As the 200 is multiplying the r you have to pass the 200 to divided the 600

r= (600/200)

r= 3%

The interest rate is 3%

3 0
3 years ago
Suppose that all social programs simultaneously become more generous. In particular suppose that there is an increase in UI bene
Tatiana [17]
  • Increase in unemployment
  • Increase in vacancy rate
  • Decrease in labor force
  • Decrease in # of labor firms
  • Tightening of the labor forces

3 0
3 years ago
Net sales revenue is $720,000. Beginning and ending net accounts receivable are $62,000 and $58,000, respectively. Calculate the
neonofarm [45]

Based on the sales revenue and the net accounts receivable, the receivables turnover ratio is 12 times .

<h3>What is the receivables turnover ratio?</h3>

This can be found as:

= Net sales revenue / Average accounts receivable

Solving give:

= 720,000 / (62,000 + 58,000) / 2

= 720,000 / 60,000

= 12 times

Find out more on receivables turnover ratio at brainly.com/question/27523896.

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5 0
2 years ago
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