Answer:
1. Cash payments for merchandise is $446,030
2.Cash payment for operating expense is $77,870
Explanation:
1. In order to calculate the Cash payments for Merchandise we would have to use the following formula:
Cash payments for Merchandise= cost of goods sold +decrease in accounts payable-decrease in inventory
Cash payments for Merchandise=$448,500+$4,290-$6,760
Cash payment for Merchandise=$446,030
2. In order to calculate the Cash payments for operating expenses we would have to use the following formula:
Cash payment for operating expense=operating expense - decrease in prepaid expense +decrease in Accured
Cash payment for operating expense=$78,000 -$650+$520
Cash payment for operating expense=$77,870
Answer:
Predetermined manufacturing overhead rate= $25.71 per direct labor hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
<u>Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base</u>
Predetermined manufacturing overhead rate= (1,192,360 / 52,000) + 2.78
Predetermined manufacturing overhead rate= 22.93 + 2.78
Predetermined manufacturing overhead rate= $25.71 per direct labor hour
Answer:
Explanation:
Computation A:
Product Cost Markup = Desire to Earn Profit + Total Selling
Desired to Earn profit = $960,000 × 12%
Desired to Earn profit = $115,200
Product Cost Markup = Desire to Earn Profit + Total Selling
Product Cost Markup = $115200 + $105000
Product Cost Markup = $220,200
Percentage Markup = Product Cost Markup / Incur Total Manufacturing Cost
Percentage Markup = $220200 / $2600000
Percentage Markup = 8.5%
Computation B:
Per Unit Cost = $2,600,000 / 80000
Per Unit Cost = $32.5
Price of Product = $32.5 + ($32.5 × 8.5%)
Price of Product = $35.26
Answer:
$105.
Explanation:
Since you are considering buying a $ 700 refrigerator on an installment loan with nothing down and 12 monthly payments of $ 72.92, and you could also charge it to a revolving credit card with a 22 percent APR and pay it off with 12 payments of $ 64.84 and your credit card company would also give you a cashback bonus of 1 percent for the purchase, to determine how much you would save by using the credit card the following calculation must be performed:
72.92 x 12 = 875.04
64.84 x 12 = 778.08
778.08 - (778.08 / 100) = 770.29
875.04 - 770.29 = 104.74
Thus, rounded to the nearest dollar, by paying with the credit card you would save an amount of 105 dollars.
