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yarga [219]
3 years ago
11

PB2.

Business
1 answer:
user100 [1]3 years ago
6 0

Answer:

1. Prime cost is $107,325

2. Conversion cost is $244,400

3. Product cost is $276,525

4. Period cost is $53,350

5. Material cost per unit is $43.04

6. Conversion cost per unit is $38.04

Explanation:

1. PRIME COST is the cost incurred by the company directly related to the production of goods. To compute the prime cost, let’s just simply add the direct material and the direct labor costs.

Direct material $32,125

+

Direct labor ($23.50 x 3,200 hrs) $75,200

= $107,325

2. CONVERSION COST is the expenses incurred by the company in turning their raw materials into finished goods. Formula of it is Direct labor + Manufacturing overhead.

Direct labor ($23.50 x 3,200 hrs) $75,200

+

Manufacturing overhead (75,200 x 225%) 169,200

= $244,400

3. PRODUCT COST is the combination of costs recorded in the inventory. It is usually the cost recognized as the cost of goods sold. This consist of the direct materials plus direct labor plus manufacturing overhead.

Product cost = DM + DL + MOH

= $32,125 + 75,200 + 169,200

= $276,525

4. PERIOD COST is the combination of Administrative expenses and the selling expenses.

Period cost = AE + SE

= $22,225 + $31,125

= $53,350

5. Material cost per unit is computed by using the formula:

= (DM + DL + MOH) / units produced

= ($32,125 + $75,200 + $169,200) / 6,425

= $43.04

6. Conversion cost is derived by dividing conversion cost over the units produced.

Conversion cost / units produced

= $244,400 / 6,425

= $38.04

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ziro4ka [17]

Answer:

Total= 45,684 feet

Explanation:

Giving the following information:

Production budget:

February= 10,993

March= 8,559

Each chair produced uses 5 board feet of wood.

Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

Direct material budget:

Production= 10,993*5= 54,965

Desired ending inventroy= (8,559*5)*0.2= 1,712

Beginning inventory= (10,993*5)*0.2= (10,993)

Total= 45,684 feet

6 0
3 years ago
Which best describes the results provided by market research?
Troyanec [42]
<span>Market research tells producers what consumers want and what they're willing to pay.

Marketers perform market research so they can accurately determine who their audience is, what people will buy, how much they will buy and how much they will pay for it. Without conducing this research they could be spending money trying to reach the wrong audience. They could also have their product set too high or too low and potentially lose money/customers. 
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8 0
3 years ago
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
IgorC [24]

Answer:

Option (D) is correct.      

Explanation:

Total Overhead Cost:

= (Overhead × Number of cases) for all products

= (20 × 350) + (25 × 550) + (17 × 650)

= 31,800

Total Machine Hours:

= Machine hours × Number of cases

= (5 × 350) + (3 × 550) + (4 × 650)

= 6,000

Overhead Rate:

= Total Overhead Cost ÷ Total Machine Hours

= 31,800 ÷ 6,000

= 5.30

Total product cost per case for Product GC:

= Direct Material + Direct Labor + Overhead

= 80 + 30 + (Machine hours × Overhead Rate)

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4 0
3 years ago
High inflation in the United States would most likely have a negative impact on
Alexxx [7]

Answer:

The correct answer is option A.

Explanation:

High inflation will cause an adverse effect on the exchange rate. However, the low inflation rate does not have a positive effect on the value of currency and exchange.  

Inflation rate affects the rate of interest which has an effect on the exchange rate. The relationship between the interest rate and inflation is complex and difficult to manage.

Lower interest rates are likely to lower the cost of borrowing. As a result, there is an increase in investment and production. This increases aggregate demand and thus price level.  

But lower interest discourages foreign investment, the demand for domestic currency falls.This shift the currency demand curve to left decreasing the interest rate.

5 0
3 years ago
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set
Vera_Pavlovna [14]

<u>Given:</u>

Annual property tax = $1,140

Number of days = 91

<u>To find:</u>

Seller's credit for property tax

<u>Solution:</u>

The following is the calculation of the seller credit for property taxes,

\text{Seller credit for property taxes} = \text{Total tax}\times \frac{\text{Number of days}}{360}

On plugging-in the values we get,

\text{Seller credit for property taxes} = \$1,140\times\frac{91}{360}

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Therefore, the seller's credit for property taxes is $288.

6 0
3 years ago
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