Answer:
$78,000
Explanation:
Total cost of producing 2,000 tires:
= [(Direct materials + Direct manufacturing labor + Variable manufacturing overhead) × 2,000 units] + Fixed cost
= [($20 + $3 + $6) × 2,000 units] + ($10 × 2,000 units)
= $58,000 + $20,000
= $78,000
Therefore, the total cost of producing 2,000 tires is $78,000.
Answer:
Explanation:
The journal entry to record the bad debt expense is shown below:
Bad debt expense A/c Dr $19,340
To Allowance for doubtful debts $19,340
(Being estimated uncollectible amount is recorded)
For recording this journal entry, we debited the bad debt expense account and credited the Allowance for doubtful debts so that the amount is correctly recorded in the correct item.
The cost of making that the component should be compared to the price of buying the component is $15.55.
<h3 /><h3>What is cost of making?</h3>
First step
Relevant manufacturing cost
Direct materials $7.90
Direct labor 2.10
Variable manufacturing overhead 1.10
Fixed manufacturing overhead 0.4
(10% × $4.00 is avoidable)
Total $11.50
Second step
Cost of making=11.5+[($8.10 per unit ÷ 6 minutes per unit)×3 minutes]
Cost of making=$11.5+$4.07
Cost of making=$15.55
Therefore the cost of making that the component should be compared to the price of buying the component is $15.55.
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