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xeze [42]
3 years ago
8

The Gabbana Company’s maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance cost

s are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, the variable maintenance cost per unit would be ________ and the total fixed maintenance cost would be.
Business
1 answer:
gayaneshka [121]3 years ago
5 0

Answer:

The variable maintenance cost per unit would be $8.33 and the total fixed maintenance cost would be $267

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable maintenance cost per unit = (High maintenance cost - low maintenance cost) ÷ (High level of activity - low level of activity)

= ($1,100 - $600) ÷ (100 direct hours - 40 direct hours)

= $500 ÷ 60 direct hours

= $8.33

Now the fixed cost equal to

= High maintenance cost - (High level of activity × Variable maintenance cost per unit )

= $1,100 - (100 direct hours × $8.33)

= $1,100 - $833.33

= $267

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Zhang Industries budgets production of 400 units in June and 410 units in July. Each finished unit requires 5 pounds of raw mate
Vika [28.1K]

Answer:

The correct answer is $12,060.

Explanation:

According to the scenario, the given data are as follows:

Production in June = 400 units

Production in July = 410 units

Each unit required = 5 pounds

Cost per pound = $6

So, June required raw material = 400 units × 5 pounds = 2000 pounds

For July required raw material = 410 units × 5 pounds × 20% = 410 pounds

So, required total raw material for June = 2000 pounds + 410 pounds - 400 pounds ( already in inventory)

= 2010 pounds

So, the total cost required for raw material in June = 2010 pounds × $6

= $12,060

Hence, the budgeted cost of purchases for raw material K for June is $12,060.

7 0
2 years ago
The crossover point is that production quantity where: _________
Vanyuwa [196]

The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.

<h3>What is crossover point?</h3>

Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."

When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

Thus, option D is correct.

For more details about crossover point, click here:

brainly.com/question/13845784

#SPJ4

All options are missing firm the question-

a. variable costs of one process equal the variable costs of another process.

b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

e. the process no longer loses money.

4 0
2 years ago
Smith is a CPA. His neighbor, Jones, asks him to prepare his tax return. Jones and Smith are casual friends. Smith prepares the
kati45 [8]

Answer:

Jones is liable to pay.

He is liable to pay to the tune of $1000. This may be negotiated however if it is not fair.

Explanation:

See the following points

  • The question above is an example of Implied At-law contracts. (We will get to the definition of this in a bit).
  • A contract is a legally binding agreement that recognises and governs the rights and duties of the parties to the agreement. A contract is legally enforceable because it meets the requirements and approval of<u> the Law</u>. From the above definition it is clear that two people may actually be engaging  in a contract without knowing it.
  • The law defines that a contract is.
  • Contracts may be Express or Implied.
  • Express contracts are simply contracts that are stated expressly, or openly, in either writing or orally, at the time of contract formation.
  • Implied contracts are created when two or more parties have no written contract.
  • There are two types of implied contracts:

  1. Implied In-Fact Contracts: these are contracts which create an obligation between the parties based on the facts of the situation. For example, assume your neighbor hires you to wash his car every Friday for the entire holidays. You wash your neighbor’s car for the first four weekends of the holidays and get paid on Friday morning each time. The fifth Friday you wash the car and when you arrive at your neighbor’s house for your pay, your neighbor refuses to pay you.                                           The law will infer that there is a contract between you and your neighbor, even though you never put anything in writing. This is an implied in-fact contract.

       2. The other type of Implied contract is that which is Implied At-Law

In the case between Jones and Smith, the law imposes a duty to perform a contract, and will enforce such a contract even against a person’s will, where the situation is such that without this legal intervention, one party would be <u>unfairly enriched</u> or advantaged by another party’s action.

  • In the question above, Smith is a CPA. He is qualified in every respect to carry out Professional Tax services. His services may be relied upon with a great degree of confidence.
  • If Jones had not filed those tax returns, he probably would have lost monies that should have accrued to him from the government.

This type of agreement is also considered a quasi-contract. A quasi-contract occurs where the law imposes an obligation upon the parties where in fact the parties did not intend to enter into a contract and made no promise to perform.

However, because one party would be unjustly enriched by another party’s action, the beneficiary of those actions must make restitution or pay fair value for the services provided, even though there was never any intention to enter into an agreement.

Cheers!

4 0
3 years ago
What is the amount of asset for blue top taxi company? A.900 B.1100 C.2000 D. 2900
harkovskaia [24]
B it is b because i would like it to be B please
5 0
3 years ago
Scenario: Sports Stuff Inc. Herb Graham is vice president of Sports Stuff Inc., a business that develops, manufactures, and mark
Vladimir79 [104]

Answer:

Joint venture

Explanation:

A joint venture can be defined as a business arrangement in which two parties come together to achieve a purpose by combining resources of both parties.

A joint venture involves joint ownership of the business.

A joint venture is good because it helps with sharing of liabilities with a partner, access to knowledge, etc.

Cheers

5 0
3 years ago
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