Answer:
Explanation:
A sole proprietor is a person who owns, manage, finance and organize a business firm.
It refers to an individual who owns a business that has not been registered as a business entity. Such business includes partnership, limited liability company (LLC) and a corporation.
A sole proprietor is responsible for decision making process of his business and also bears the burden of profit, loss and tax alone.
WHILE
An independent contractor is an individual who works for another individual. An independent contractor provides services to another person but he is not an employee of the other person. An independent contractor is a self employed person who provides professional services to a business organzation.
He is paid based on the amount of work done. Examples of independent contractor includes graphics designer, data analyst, web designer or IT expert.
Answer:
$91
Explanation:
Given the following information,
Direct materials per unit = $54
Direct labor per unit = $20
Variable overhead per unit = $6
Fixed overhead for the year = $462,000
For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.
Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit
Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6
Unitary cost = $11 + $54 + $20 + $6
Unitary cost = $91
Therefore, the product cost per unit is $91
Answer:
The indifference point is 22,381 hours a year.
Explanation:
Giving the following information:
SecureAll:
Fixed costs= $900,000
In house:
Fixed costs= (100,000*4) + 30,000= $430,000
Variable costs= $21 an hour
First, we need to structure the cost formula for each option:
SecureAll= 900,000
In-house= 430,000 + 21*x
X= number of hours
Now, to calculate the indifference point, we need to equal both formulas and isolate X:
900,000= 430,000 + 21x
470,000/21= x
22,381= x
The indifference point is 22,381 hours a year.
