Scarce resources are _____. unlimited last forever limited

The following information is available for Wonderway, Inc., for 2015: Factory rent $ 28,300 Company advertising 20,200 Wages pai

bearhunter [10]

Answer:

1. $85,000

2. $132,750

3. $119,900

4. $217,750

5. $252,650

6. $96,130

Explanation:

1. The computation of direct labor cost is shown below:

= Wages paid to laborers

= $85,000

2. The computation of manufacturing overhead cost is shown below:

= Factory rent + Indirect production labor + Utilities for factory + Production supervisor's salary + Factory insurance + Depreciation on factory equipment

= $28,300 + $1,950 + $31,200 + $31,600 + $12,700 + $27,000

= $132,750

3. The computation of prime cost is shown below:

= Wages paid to laborers + Direct materials used

= $85,000 + $34,900

= $119,900

4. The computation of conversion cost is shown below:

= Wages paid to laborers + manufacturing overhead cost

= $85,000 + $132,750

= $217,750

5. The computation of total manufacturing cost is shown below:

= Prime cost + manufacturing overhead cost

= $119,900 + $132,750

= $252,650

6. The computation of period expenses is shown below:

= Company advertising + Depreciation for president's vehicle + President's salary + Sales commissions

= $20,200 + $8,100 + $60,200 + $7,630

= $96,130

6 0

4 years ago

Which of the following is true about the leveraging effect? Under economic growth conditions, firms with relatively low financia

suter [353]

Answer: Under economic growth conditions, firms with relatively more financial leverage will have higher expected returns.

Explanation:

Under economic growth conditions, firms and organizations with more financial muscle usually have higher expected returns.

This Growth, is as a result of the change in the company's earnings, revenue, GDP or some other sources over a period of time (usually a year) to the next. This growth are usually not affected by inflation.

7 0

4 years ago

Arsenal Company is considering an investment in equipment costing $30,000 with a five-year life and no salvage value. Arsenal us

sammy [17]

Answer:

option (B) $10,500

Explanation:

Data provided in the question:

Cost = $30,000

Useful life = 5 years

Salvage value = 0

Tax rate = 35%

Expected net cash inflow before depreciation and taxes = $20,000 per year

Now,

The total tax shield created by depreciation over the life of project

= Tax rate × ( Amount of depreciation over the life of project )

= 35% × ( Cost - Salvage value )

= 0.35 × ( $30,000 - 0 )

= $10,500

Hence,

The answer is option (B) $10,500

3 0

4 years ago

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In

Leya [2.2K]

Answer:

Results are below.

Explanation:

To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4.4 - 4.15)*90,500

Direct material price variance= $22,625 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (8*11,250 - 90,500)*4.4

Direct material quantity variance= $2,200 unfavorable

Total direct material variance= 22,625 - 2,200= $20,425 favorable

To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4

Direct labor time (efficiency) variance= $10,050 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (13.4 - 14.1)*14,250

Direct labor rate variance= $9,975 unfavorable

Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable

5 0

3 years ago

Ana has won a lottery. she was offered two options to receive the award: she can either take it in five installments of $60,000

ANTONII [103]

She should choose to take a lump-sum of $271,000 now. This is the best option since the other option would have a present value less than $271,000. If you use the present value annuity calculator, you can get the present value of the installment option to be $259,768.60. Therefore, the the lump – sum payment option is the most appropriate.

8 0

3 years ago