James has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $7,000 tax deduction. How will this ov
1 answer:
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Missing information attached along with the complete worksheet
Answer:
rent expense 1,700 debit
prepaid rent 1,700 credit
dep expense 350 debit
acc dep equip 350 credit
advertizing expense 1,400 debit
prepaid advertizing 1,400 credit
Explanation:
advertizing:
5,600 divide into 4 months = 1400 accrued per month
depreciaton:
42,000 / 10 years = 4,200
then we divide by 12 month: 350
Answer:
A) USA will not be better off switching to the new dye since the cost is greater than the Fine
B) $118076
C) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
Explanation:
<u>A) Determine If the USA be better off using the new dye </u>
Units of clothes to be dyed = 50,000
Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3
Total cost of using the new dye = 50000 * $3 = $150,000
Fine = $130,000
hence USA will not be better off switching to the new dye since the cost is greater than the Fine
<u>B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing </u>
<em>condition : reduce fabric and labor cost by 1%</em>
Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months
= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12
= [ 5000 * 10 ] *12 = $600,000
Applying kaizen costing
Given: Fabric cost per unit = $6 , Labor cost per unit = $4
Total units of production = 10000 + 50000 = 60,000
Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]
Total annual cost using Kaizen costing = $56807.61
difference in cost = $600,000 - $568076 = $31924
with the new dye and Kaizen costing the overall cost will be change by $118076 i.e. ($150,000 - $31924) = <em>$118076 </em>
C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials
while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset
