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Deffense [45]
3 years ago
8

Long Island Manufacturing Company developed the following information for its service​ departments, S1 and​ S2, and its producti

on​ departments, P1 and​ P2:       S1       S2       P1       P2 Overhead Cost ​$8,000 ​$14.400 ​$16,000 ​$20,000 Service Provided by S1 minusminusminus ​30% ​30% ​40% Service Provided by S2 ​25% minusminusminus ​30% ​45% Using the reciprocal method of service department cost​ allocation, how much is the total overhead cost for P1 for the period if calculations are rounded to the nearest​ dollar? A. ​$25,120 B. ​$25,210 C. ​$33,188 D. ​$25,188
Business
1 answer:
mr Goodwill [35]3 years ago
7 0

Answer:

Thus Option A is correct.  ​$25,120

Explanation:

S1 = 8000+0.25(14400+0.30(S1))  

S1 = 8000+3600+0.075(S1)  

S1 = $12,540 = $11,600 / 0.925

 

S2 = $18,162 = $14,400 + 0.30 ($12,540)  

$25,210 = $16,000 + 0.30 ($12,540) + 0.30 ($18,162)

You might be interested in
Assume the following data for Cable Corporation and Multi-Media Inc.
Tatiana [17]

Answer:

a-1 Cable Corporation 13.05

Multi-media Inc. 33.1%

a-2 Multi-Media Inc.

2. Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

Net income/Total assets 7.76% 14.51%

Sales/Total assets .79 times 2.80 times

Debt/Total assets 40.55% 56.17%

Explanation:

a-1. Computation to determine the return on stockholders’ equity for both firms.

CABLE CORPORATION

Using this formula

Return on Stockholders’ Equity= Net Income / Stockholder’s equity

Let plug in the formula

Return on Stockholders’ Equity=$31,200 / 239,000

Return on Stockholders’ Equity= 0.1305*100

Return on Stockholders’ Equity=13.05%

MULTI-MEDIA INC.

Return on Stockholders’ Equity=$140,000 / 423,000

Return on Stockholders’ Equity= 33.1%

a-2. Based on the above calculation the firm that has the higher return is MULTI-MEDIA INC.

b. Computation for the following additional ratios for both firms.

Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

($31,200/317,000=9.84%)

($140,000/2,700,000=5.19%)

Net income/Total assets 7.76% 14.51%

($31,200/402,000=7.76%)

($140,000/965,000=14.51%)

Sales/Total assets .79 times 2.80 times

(317,000/402,000=.79 times

(2,700,000/965,000=2.80 times)

Debt/Total assets 40.55% 56.17%

(163,000/402,000=40.55%)

( 542,000/965,000=56.17%)

4 0
3 years ago
Amram Inc. can issue a 20-year bond with a 6% annual coupon at par. This bond is not convertible, not callable, and has no sinki
Reil [10]

Answer:

B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.

Explanation:

Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.

Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.

Callable bonds is a bond that can be redeemed before the maturity date.

7 0
3 years ago
EB1. 
aleksandr82 [10.1K]

Answer:

$110

Explanation:

The contribution margin per unit refers to the revenue available per unit to pay for fixed costs and profits.

The formula for contribution margin is selling price per minus variable costs per unit.

, i.e., contribution margin = selling price -variable costs

=$150-$40

=$110

8 0
3 years ago
Water Technology, Inc. Incurred the following costs during 20xt. The company sold all f ts products manufactured during the year
Thepotemich [5.8K]

Answer:

Part 1

<u>Variable Costs </u>

Direct material                                                           $5,000,000

Direct labor                                                                $2,400,000

<u>Fixed Costs</u>

                                                                                           $

Utilities (primarily electricity)                                         120,000

Depreciation on plant and equipment                        220,000

Insurance                                                                       150,000

Supervisory salaries                                                     400,000

Property taxes                                                              230,000

Salaries of top management and staff                        372,000

Office supplies                                                               45,000

Depreciation on building and equipment                    80,000

Part 2

<u>Forecast the 20x2 cost amount for each of the cost items listed</u>

Direct material ($5,000,000  x 1.20)                      $6,000,000

Direct labor (2,400,000 x 1.20)                               $2,880,000

Utilities (primarily electricity)                                       $120,000

Depreciation on plant and equipment                     $220,000

Insurance                                                                    $150,000

Supervisory salaries                                                 $400,000

Property taxes                                                           $230,000

Salaries of top management and staff                     $372,000

Office supplies                                                            $45,000

Depreciation on building and equipment                $80,000

Explanation:

Variable Costs vary with the level of production. Examples are Direct Materials and Direct labor.

Fixed Costs remain constant for any production level. Examples are Depreciation and Utilities such as electricity.

A growth in Sales will affect the Variable Costs only. As production increases to meet the 20 percent growth in sales so do these costs since they vary in direct proportion to the level of production.

4 0
3 years ago
6. On Friday, Billy mails Andrew an offer, which Andrew receives on Monday. On Tuesday, Billy mails Andrew a revocation, which A
kifflom [539]

Answer:

A contract was formed when Andrew mailed his acceptance on Wednesday.

Explanation:

A contract is formed only if the parties intend to be legally bound by their promises and have clearly agreed on what those promises are. This is known as a meeting of the minds. The court will look for certain elements to determine whether a valid contract has been made. These are offer, acceptance, and consideration

7 0
3 years ago
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