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3 years ago

Which of the following are advantages of using the plantwide overhead rate method?

Business

1 answer:

AlexFokin [52]3 years ago

6 0

Answer:

Which of the following are advantages of using the plantwide overhead rate method? Option B is the most suitable answer - The necessary information is readily available. It is more accurate than traditional overhead allocations.

Explanation:

Majorly, the advantage of applying the plantwide overhead rate method is that the necessary information is readily available.

Therefore, option B is the most suitable answer.

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Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

Arisa [49]

Answer:

Wingate Company

1. A Contribution Format Income Statement for divisions:

2a. Increase monthly advertising for the West Division by $28,000 to increase its sales by 12%

East Central West Total

Sales $412,000 $670,000 $520,000 $1,602,000

Variable exp. 181,280 207,700 166,400 555,380

Contribution

margin $230,720 462,300 353,600 1,046,620

Fixed expenses 290,000 332,000 191,000 813,000

Non-Traceable

Fixed Expenses 338,000

Net operating Income

(loss) ($59,280) $130,300 $162,600 ($104,380)

2b. How much Company's Net Operating Income Increase (Decrease) with the implementation of the above Proposal:

Net operating income before advert = $162,600

Division's net operating income after advert = $160,366

Therefore, the company's net operating loss will increase by $2,234

Explanation:

a) Wingate Company's recent monthly contribution format Income Statement:

Sales $ 1,602,000

Variable expenses 555,380

Contribution margin 1,046,620

Fixed expenses 1,151,000

Net operating income (loss) $ (104,380)

b) Division West's Income Statement:

Sales $582,400 ($520,000 x 1.12)

Variable expenses 203,034 ($181,280 x 1.12)

Contribution margin $379,366

Fixed Expenses 219,000 ($191,000 + 28,000)

Net Operating Income $160,366

c) If sales value increases by 12%, the variable expenses will increase proportionately, unless there is an increase in the price, which will ultimately reduce demand, further depressing the sales value. This is why it is called Variable Cost. Therefore, a different result will be obtainable if the variable expenses are held constant, contrary to its behavior.

4 0

3 years ago

What is NOT affected by decisions of the federal Open Market Committee?

natka813 [3]

I believe the answer is: D. bond prices

Bond prices is determined by the mutual agreement between the company who issue the bond and the investors who bought them along with its value in the market. federal Open Market Committee only has the jurisdiction in United States Treasury securities and banking operation.

5 0

3 years ago

Read 2 more answers

If your employer offers a retirement plan, don’t participate in it. Don’t bother to set target dates for achieving your financia

CaHeK987 [17]

Answer: Please refer to Explanation

Explanation:

If your employer offers a retirement plan, don’t participate in it. Yes.

Having a retirement plan with your employer especially one in which you are a 100% vested is a drain on your income. It might have benefits in future when you retire but if you want to engage in financial planning, you need to have access to every penny and that includes the money going to the retirement plan.

Don’t bother to set target dates for achieving your financial goals. No

Setting a target date for various amounts in your financial goals enables you to work towards them with more determination. It is important to set target dates.

Pay credit card balances in full each month. Yes

Paying your credit card balance in full every month helps you avoid interest accruing as well as increasing your credit score. It is therefore very important to pay off the balance in full every month which will be easier as long as you charge things to it that you can afford.

Start saving early in life and save throughout your life. Yes.

The more you save the more you have to invest. This is why you should start saving early if you want to engage in financial planning. You need to formulate the determination to save every time. And don't just save for saving's case, save to invest.

3 0

3 years ago

The FBLA is only for students still in school.<br> True<br> False

aniked [119]

Trueeeeeeeeeeeeeeeeee

8 0

4 years ago

Your company expects profits to be close to $4,000,000. The board has instructed you to increase retained earnings by approximat

artcher [175]

The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

The number of shares is assumed to be 100,000.

Computation of dividend per share;

$\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20$

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

Learn more about the dividends in the related link:

brainly.com/question/14171490

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6 0

2 years ago