1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksivusya [100]
3 years ago
5

Derby Inc. manufactures a product which contains a small part. The company has always purchased this motor from a supplier for $

125 each. Derby recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the motor instead of buying it. The company prepared the following per unit cost projections of making the motor, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 150% of direct labor cost. Direct material $ 38 Direct labor 50 Overhead (fixed and variable) 75 Total $ 163 The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor. What is the effect on income if Derby decides to make the motors
Business
1 answer:
egoroff_w [7]3 years ago
3 0

Answer:

$16 increase on income

Explanation:

Cost of purchase - $125

Direct materials - $ 38

Direct labor - $ $50

Overhead - $ 75

Incremental variable cost -$21

Relevant cost = $(38 + 50 +21)= $109

Cost saved = $(125-109) = $16

It is cheaper to manufacture than buying.

You might be interested in
Good X and Good Y are related goods. When the price of Good X rises by 20 percent, the quantity demanded for Good Y falls by 40
ch4aika [34]

Answer:

-2

Explanation:

Good X and Y are related goods

When the price of Good X rises by 20 percent the quantity for Good Y falls by 40 percent

Therefore the cross price elasticity can be calculated as follows

= -40/20

= -2

Hence the cross price elasticity is -2

4 0
3 years ago
The first step that any organization should take to manage the risk of employee communication is to develop and publicize​ a(n)
Y_Kistochka [10]
The first step ....................................... is to develop and publicize A SOCIAL MEDIA policy.
A social media policy refers to a corporate code of conduct which provides guidelines for the workers of a company who post contents on the internet either in their official or private capacity. It is also called social networking policy.
8 0
3 years ago
Harry owes the bank money. To repay his debt, he paid \$150$150dollar sign, 150 back to the bank each month. After 101010 months
Firdavs [7]

Answer: $8,400

Explanation:

Given the following:

Amount repaid each month = $150

Number of Periods for which amount was paid = 10 months

Amount left after 10 months payment = $6900

Harry's original debt=?

The total amount paid = $150 × 10 = $1500

Amount left = $6900

Total debt amount:

(Total Amount left + total amount paid )

$(6900 + 1500)

=$8400

7 0
3 years ago
Rushmore Company provided services for $45,000 cash during Year 1. Rushmore incurred $36,000 of operating expenses on account du
laila [671]

Answer:

The amount of the net income shown on the income statement is $9,000

Explanation:

The computation of the net income is shown below:

Net income = Services provided for cash =  operating expenses incurred

= $45,000 - $36,000

= $9,000

According to the matching principle, the revenues of a particular period should always be matched with the expenses that are incurred in that particular year

So, the net income that is to be reported on the income statement is $9,000

Note: Options are shown in the attachment

6 0
3 years ago
Jack is yelling at Samantha because she was late last week. Unfortunately, the whole office can hear. Now Samantha is not only u
lukranit [14]

Answer:

In this case, Jack's "human/interpersonal skills" failed. The skills that Jack is failing to use are important for "managers."

Explanation:

From the statement above, we can assume that Jack's position is superior to that of Samantha. He is, probably, the manager. However, he yelled at Samantha last week because she was late. In this case, Jack failed in his "human skills." This is also known as<em> "interpersonal skills,"</em> which is <u>a set of skills related to interacting effectively with other people.</u>

A manager with good interpersonal skills knows how to listen to his subordinates. In fact, he should be an <em>active listener,</em> which means he should be observant upon listening to other people's explanation. He should also provide advice or solve problems without yelling.

Thus, this explain the answers.

6 0
3 years ago
Other questions:
  • Preparing information to be communicated to others is called
    8·1 answer
  • Which of the following will increase investment spending
    9·1 answer
  • Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividend
    9·1 answer
  • "The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes
    9·1 answer
  • Happy​ Valley, Inc. has received an invoice for​ $6,500 with terms of​ 3/15, n/45 and uses the net method to record purchases. I
    15·1 answer
  • Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer, but the price turns out to be $600. Joe is t
    5·1 answer
  • A teacher buys 4.25 ounces of a compound for an experiment. The compound costs $5.76 per ounce. The teacher pays with a $50 bill
    15·1 answer
  • Dana believes that a new phone to be sold by Ear Fruit Inc. will become the most popular phone in the global market. Dana enters
    10·1 answer
  • Suppose you worked in the government. A company wants to set up a factory in your country. It would bring jobs, but it would als
    10·1 answer
  • If price paper spends an additional on advertising, sales volume should increase by units. what effect will this have on operati
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!