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liraira [26]
3 years ago
5

Lily's Pastries produces cupcakes, which sell for $5.10 each. During the current month, Lily produced 3200 cupcakes, but only so

ld 2700 cupcakes. The variable cost per cupcake was $3.40 and the sales commission per cupcake was $0.50. Total fixed manufacturing costs were $1700 and total fixed marketing and administrative costs were $900. What is the product cost per cupcake under absorption costing?
Business
2 answers:
shtirl [24]3 years ago
7 0

Answer:

Unitary cost= $3.92

Explanation:

Giving the following information:

Lily produced 3200 cupcakes.

The variable cost per cupcake was $3.40.

Total fixed manufacturing costs were $1700

<u>Under the absorption costing method, the unitary product cost is calculated using the variable cost and the fixed manufacturing costs.</u>

Unitary cost= unitary variable cost + unitary fixed overhead

Unitary cost= 3.4 + 1,700/3,200= $3.92

Dovator [93]3 years ago
6 0

Answer: $3.93

Explanation:

Given the following

Variable cost per unit = $3.40

Fixed manufacturing cost = $1700

Total Units produced=3200

Uaing absorption costing which incorporates the cost of fixed manufacturing cost of goods in the unit price of goods.

Absorption costing per unit = Variable cost per unit + fixed cost per unit

Variable cost per unit = $3.40

Fixed cost per unit = (Total manufacturing cost ÷ Total unit produced)

Fixed cost per unit = $1700 ÷ 3200 = $0.53

Absorption costing per unit = $3.40 + $0.53 = $3.93

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During March, the production department of a process operations system completed and transferred to finished goods 23,000 units
Alchen [17]

Answer:

c. $1.58.

Explanation:

The computation of the direct materials cost per equivalent unit is given below:

Equivalent units for material is

= 100% of 193,000 + 100% of 28,000

= 193,000 + 28,000

= 221,000

Equivalent cost for material is

= $94,100 + $254,800

= $348,900

So, the direct materials cost per equivalent unit is

= $348,900 ÷ 221,000

= $1.58

4 0
3 years ago
Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo
KATRIN_1 [288]

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

3 0
3 years ago
Read 2 more answers
What does the rule of 72 tell us? What is the formula used?
RUDIKE [14]

Answer:

Image result for What does the rule of 72 tell us? What is the formula used? Amy heard Dave Ramsey say that she could expect an average of 12% returns when she invests in mutual funds. Amy has $10,000 to invest. How long will it take Amy’s investment to double?

Divide 72 by the interest rate on the investment you're looking at. The number you get is the number of years it will take until your investment doubles itself.

Explanation:

8 0
3 years ago
Before year-end adjusting entries, Dunn Company's account balances at December 31, 2014, for accounts receivable and the related
nlexa [21]

Answer: $1,075,000

 

Explanation: When a current or fixed asset is held in inventory, the worth at which it is recorded in accounting is called its net realizable value. In the given case, the net realizable value could be computed using following formula  :-

Net realizable value = Balance of receivable on Dec 31 - expected                                                                                                                                                                                 uncollectibles          

Putting the values into equation we get :-

Net realizable value = $1,200,000 - $125,000

                                   = $1,075,000

                       

5 0
3 years ago
The leadership style advocating that a leader involve subordinates in most decisions
OlgaM077 [116]

Answer:

E) participative.

<u>The multiple-choice options for this question are: </u>

A) laissez-faire.

B) hands-off.

C) existential.

D) authoritarian.

E) participative.

Explanation:

In the participative leadership style, the manager invites employees' input when making all or most company decisions. The employees are adequate information regarding company issues. Each of the staff members is accorded an opportunity to make their contribution to the subject matter. If the team cannot reach a consensus, a majority vote determines the direction the company will take.

Participative leadership is criticized for slow f decision-making. Its main advantage is that decisions are easily acceptable by all, making implementation seamless.

7 0
3 years ago
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