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frosja888 [35]
3 years ago
8

Dawn Corp. uses a standard cost system. During the year, both the labor rate variance and the labor efficiency variance were unf

avorable. Dawn wrote the variances off directly to cost of goods sold. If Dawn had allocated the variances to work in process, finished goods, and cost of goods sold instead, what would have been the effects on current ratio and net income?Current--------- Netratio -----------incomeA. Increases ----IncreasesB. Increases ----DecreasesC. Decreases --IncreasesD. Decreases-- Decreases
Business
1 answer:
Kisachek [45]3 years ago
8 0

Answer:

Option A is the correct answer (Increases - Increases)

Explanation:

If Dawn had allocated the variances to work in progress rather than on cost of goods sold. Current ratio would increases and the net income would increase also. This is because writing off the variances to cost of goods sold would automatically result into a lower operating income than if it was either prorated to work in progress, finished goods, and cost of goods sold.

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Abey​ Kuruvilla, of Parkside​ Plumbing, uses 1,210 of a certain spare part that costs ​$26 for each​ order, with an annual holdi
Andreyy89

Answer:

Annual demand(D) = 1,210

Ordering cost(S) = $26

Annual holding cost (H) = $24

With the order quantity(Q) = 25,

Total cost = Holding cost + ordering cost

= [(Q/2)H] + [(D/Q)S]

= [(25/2)24] + [(1210/25)26]

= $300 + $1258.4

= $1558.4

With the order quantity(Q) = 40,

Total cost = Holding cost + ordering cost

= [(Q/2)H] + [(D/Q)S]

= [(40/2)24] + [(1210/40)26]

= $480 + $786.5

= $1266.5

With the order quantity(Q) = 50,

Total cost = Holding cost + ordering cost

= [(Q/2)H] + [(D/Q)S]

= [(50/2)24] + [(1210/50)26]

= $600 + $605

= $1205

With the order quantity(Q) = 60,

Total cost = Holding cost + ordering cost

= [(Q/2)H] + [(D/Q)S]

= [(60/2)24] + [(1210/60)26]

= $720 + $524.33

= $1244.33

With the order quantity(Q) = 100,

Total cost = Holding cost + ordering cost

= [(Q/2)H] + [(D/Q)S]

= [(100/2)24] + [(1210/100)26]

= $1200 + $314.6

= $1514.6

8 0
3 years ago
Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ___
pickupchik [31]

The expectation of the Tatum Manufacturing firm from the Hong Kong government is to <u>ensure fair competition </u>with its competitors.

<h3>What is a manufacturing firm?</h3>

A manufacturing firm is a firm that engages in massive scale production of goods and commodities that uses physical labor and/or machinery to turn raw materials and parts, into finished goods or completed items.

The finished goods could be sold:

  • To other manufacturers for the fabrication of more sophisticated products,
  • To wholesalers that redistribute the goods to retail traders, or
  • To final consumers directly.

The role of the Hong Kong government to Tatum Manufacturing Firm in as much they comply with the government regulations and taxes is for the government to ensure that there is fair competition for Tatum Firm with its competitors.

Learn more about a manufacturing firm here:

brainly.com/question/24519299

4 0
2 years ago
Employees in an advertising company are well paid, yet they all seem to be lacking interest in work and are demotivated. What no
zysi [14]

the answer here is d

5 0
3 years ago
A nation has an absolute advantage in the production of a good, if Group of answer choices it can produce that good at a lower o
Leona [35]

Answer: it can produce that good using fewer resources than its trading partner

Explanation:

A country has an absolute advantage in the production of a good when such country can produce the good using fewer resources than another country.

Absolute advantage can be due to the natural endowment of a country. For example, let's say Japan uses 2 hours in producing a good while Brazil uses 5 hours in producing such good. Then, it can be deduced that Japan has an absolute advantage over Brazil.

6 0
2 years ago
Frankenstein Electric has a capital structure that consists of 60 percent equity and 40 percent debt. The company's long-term bo
Alexeev081 [22]

Answer:

Kd = 7%

Ke =      D1      +  g

        Po(1 - FC)

Ke =      $2            + 0.09

        $40(1 - 0.15)

Ke =       $2      +  0.09

              $34

Ke = 0.1488 = 14.88%

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)

WACC = 8.928 + 1.68

WACC = 10.6%

Explanation:

In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.

8 0
3 years ago
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