1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ne4ueva [31]
3 years ago
15

Swifty Corporation manufactures widgets. Bowden Company has approached Swifty with a proposal to sell the company widgets at a p

rice of $88560 for 100000 units. Swifty is currently making these components in its own factory. The following costs are associated with this part of the process when 100000 units are produced:
Direct material $ 33480

Direct labor 31320

Manufacturing overhead 43200

Total $108000

The manufacturing overhead consists of $17280 of costs that will be eliminated if the components are no longer produced by Swifty. From Swifty’s point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

a)$19440 incremental savings
b)$2160 incremental savings
c)$19440 incremental cost
d)$6480 incremental cost
Business
1 answer:
sveta [45]3 years ago
4 0

Answer:D.$6480 Incremental cost

Explanation:

The cost of producing 100,00 units of wigdets are direct material plus direct labour and the overhead cost that will be eliminated if the widget is no longer produce by Swiftly which amounts to $17280.

This amount will be added because it's the amount of overhead directly attributable to the production of wigdets.

Additions of these cost leave the cost of manufacturing at $82,080.

Comparing this with the proposed sales price of $88560 means Swiftly will incur additional cost of $6480

You might be interested in
Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid mode
Viefleur [7K]

Answer:

Estimated manufacturing overhead rate= $32 per direct labor hour

Explanation:

Giving the following information:

At the beginning of the current year, management estimated that $672,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model and 10,000 units of the rigid model.

The flexible model requires 3.0 hour(s) of direct labor time per unit, and the rigid model requires 1.50 hour(s).

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=

Estimated manufacturing overhead rate= 672,000/(2000*3 + 10000*1.5)= $32 per direct labor hour

8 0
3 years ago
The market for college education is perfectly competitive. Over the recent years, costs of equipping and maintaining modern clas
SVETLANKA909090 [29]

Answer:

Equilibrium price increases while the effect on equilibrium quantity is indeterminate.

Explanation:

Due to the higher cost of equipping and maintaining schools, the supply of schools would fall. This would increase the price of schools and the supply would fall.

Increased desire for college education would increase the demand for schools and the price of schools.

Taking the effect of demand and supply together, the equilibrium price would rise and there would be indeterminate effect on quantity

I hope my answer helps you

5 0
3 years ago
Universal Containers requires that the organization-wide default for opportunities be set to public read/write. However, sales u
____ [38]

Answer: The correct answer is "D. Use the show filter to filter report results and reduce records returned".

Explanation: If sales users are complaining that opportunity reports return too many results, making it difficult to find their team’s opportunities in the report results it would be convenient <u>use the show filter to filter report results and reduce records returned.</u>

7 0
3 years ago
"A new issue corporate bond with dated date of June 1st is bought from the underwriter with settlement occurring on Monday, June
Tema [17]

Answer:

27 days

Explanation:

The accrued interest is calculated by beginning the count of days from the dated date of the corporate bond up until the settlement, without including the settlement date.

From 1st June to 27th June, a day before settlement date makes 27 days, as a result, the number of days in respect of which interest is owed to the underwriter is 27 days

4 0
3 years ago
Michelle works in an appliance store. She has a goal to sell a combination of six refrigerators, stoves or dishwashers so she ca
kotykmax [81]
The ‘SMART’ technique a tool for effective goal setting. The acronym SMART stands for Specific, Measurable, Attainable, Realistic, and Time-bound, all of which are requisites for goals. The goal “to sell a combination of six refrigerators, stoves or dishwashers to earn a bonus” is specific, measurable, attainable and realistic because Michelle has done this before. Yet the goal is not time-bound. The length of time it is required to meet is not specified in the goal. 
7 0
3 years ago
Read 2 more answers
Other questions:
  • One suggestion for effective teamwork is to resolve disputes _____.
    9·2 answers
  • Rachel's Designs has 1,800 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    7·1 answer
  • Refer to Exhibit 7.4, which shows short-run average cost curves. Average cost is lowest for a medium plant when output is _____
    14·1 answer
  • The accounts receivable credit column of the cash receipts journal is
    6·1 answer
  • Quick Buck and Pushy Sales have agreed to each produce half the profit-maximizing monopolist quantity, set the monopoly price an
    6·1 answer
  • A small company has 5000 shares. Lauren owns 200 of these shares. The company decides to split its shares. What is Lauren's owne
    13·2 answers
  • Famous Foods is a fast-food chain restaurant famous for its hot coffee (its coffee temperature is a bit higher than that of the
    10·1 answer
  • Hillary enters into a shipment contract with a dress manufacturer for fifty red dresses. The dress manufacturer sends fifty blue
    11·1 answer
  • What are some of googles resources
    13·1 answer
  • Sunland Company owns equipment that cost $73,000 when purchased on January 1, 2019. It has been depreciated using the straight-l
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!