Answer:
d. $72.41 per setup
Explanation:
The computation of the activity rate for the machine setup activity pool is as follows;
The Activity rate for the Machine setups activity cost pool is
= Estimated overhead cost ÷ Total machine setup
= $50,687 ÷ 700
= $72.41 per setups
Hence, the activity rate for the machine setup activity pool is $72.41 per setup
Therefore the option d is correct
Digital Divide:
The digital divide is nothing but a term that refers to the gap which usually exist between individuals who have the capacity to access communication technology,modern information and those who lack such access.
Solutions for Digital divide:
- Increase affordability.
- Empowering users.
- Improve the relevance of online content.
- Internet infrastructure development.
Increasing affordability:
One of the main cause for the increase in the rate of individuals who lack access to internet is due to its high rate of affordability. Internet Taxes, Electricity rates must be made less and Government must help them through various digital tools.
Empowering users:
Most of them fail to realize the full use of Internet and its information. Empowering the internet users and making them realize the true potential of Internet technology can help them access it easily.
Improve the relevance of online content:
Most of the individuals can't use internet because they can't find content, online services ,web and mobile applications in their language which they can understand. Thus improving the relevance of Online content by making availability for all possible languages can sort the gap of digital gap.
Internet infrastructure development:
Lack of Infrastructure can also reduce the rate of individuals accessing internet. Thus by increasing the infrastructure can reduce the gap between Digital divide
a) Yes, $67 exceeds the loss—minimizing output.
Using the MR
They will produce 9 units.
Profits per unit = $67 - $50 = $17
Total profit =
$153.
(b) Yes, $42 exceeds the loss—minimizing output.
Using the MR
They will produce 6 units
Loss per unit is = $42 - $47.50 = $5.50
Total loss = $33 (= 6 x $5.50), which is less than the total fixed cost of $60.
c) No, because $33 is less than AVC. If it did produce, the quantity will be 4—By producing 4 units, it would lose $78 [= 4 ($33 - $52.50)]. and if they didn't produce, it would lose only the total fixed cost of $60.
Answer:
On November 27
Debit Retained earnings $12,750
Credit Dividend payable $12,750
<em>(To record the dividend declared)</em>
On December 24
Debit Dividend payable $12,750
Credit Cash $12,750
<em>(To record dividend paid) </em>
Explanation:
- Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.
- The dividend payable was calculated as $.5 x 25,500 shares = $12,750.
- Dividends are usually paid out of retained earnings.
- The dividend payable account is debited when payment is to be made.
Answer:
Net income will be $352,500 more if the company continues with Luxury watches only.
Explanation:
Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:
Westfall Watch
Income Statement (Contribution Margin approach)
Particulars $
Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000
Less: Variable expenses
[$255,000 + ($255,000 x 250%)] (892,500)
Contribution Margin 507,500
Less: Fixed Cost (80,000)
Net Income 427,500
Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.
