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
zzz [600]
2 years ago
6

Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirectcost rate to allocate manufactu

ring overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.
Company Case High School Job
Direct materials $40,000 $2,000
Direct labor $10,000 $400
Manufacturing overhead costs $45,000
Machine-hours 100,000 mh 900 mh



What is the bid price for the Case High School job if the company uses a 40% markup of total manufacturing costs?
A) $3,360
B) $1,122
C) $960
D) $3,927
Business
1 answer:
Scrat [10]2 years ago
5 0

Answer:

D) = $3,927

Explanation:

<em>The cost of a product is the addition of direct material cost + direct labour cost + manufacturing overheads</em>

<em>Overhead absorption rate</em><em> = </em><em>Budgeted Overheads/ Budgeted machine hours</em>

= $45,000/100,000 hours

= $0.45

<em>Product cost</em><em> </em>= 2,000 + 400 + (0.45× 900)

                     = $2,805

<em>Bid price</em> = Product + ( mark up)

            = 2,805 + (40% × 2,805)

            = $3,927

<em>Bid price</em>   = $3,927

You might be interested in
If a positive externality in consumption is present in a market, then
larisa [96]
Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.
8 0
3 years ago
Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free rate is 2.86 percent annually
Schach [20]

Answer:

the company's cost of equity is 11.47 %.

Explanation:

The Company`s cost of equity is the return that is required by holders of Common Stocks.

The Cost can be determined using the <em>Capital Asset Pricing Model</em> (CAPM) as follows :

Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio

                       = 2.86 % + 1.23 × 7.00 %

                       = 11.47 %.

6 0
3 years ago
How long can foodborne illnesses last
Helga [31]

Answer: Symptoms begin 2 to 10 days after becoming infected, and may last 1 to 2 weeks.

Explanation:

3 0
3 years ago
Cheryl is considering adding a rack of greeting cards to her product offerings at The Bitty Bookstore. Her fixed costs associate
MrRa [10]

Answer:

B. 200

Explanation:

At Break even point:

Total costs= Total revenue

In the given question

Total costs=Total variable costs+total fixed costs

                 =$1 *number of cards to be sold+$400

Total revenue=$3*number of cards to be sold

$1 *number of cards to be sold+$400=$3*number of cards to be sold

$3*number of cards to be sold-$1 *number of cards to be sold=$400

$2*number of cards to be sold-=$400

Number of units to be sold=$400/$2=200

So based on the above calculations, the answer shall be B. 200

5 0
3 years ago
Nestlé of Switzerland is revisiting its cost of equity analysis. As a result of extraordinary actions by the Swiss Central​ Bank
jasenka [17]

Answer:

The numbers are missing, so I looked for similar questions to fill in the blanks:

Rf (Switzerland) = 0.54%

Rm (Switzerland) = 8.5%

Beta (Switzerland) = 0.919

Rm (global) = 9.06%

Beta (global) = 0.532

a. What is​ Nestlé's cost of equity based on the domestic portfolio for a Swiss​ investor?

Re (Switzerland) = Rf + [Beta x (Rm - Rf) = 0.54% + [0.919 x (8.5% - 0.54%)] = 0.54% + 7.32% = 7.86%

b. What is​ Nestlé's cost of equity based on a global portfolio for a Swiss​ investor?

Re (global) = Rf + [Beta x (Rm - Rf) = 0.54% + [0.532 x (9.06% - 0.54%)] = 0.54% + 4.53% = 5.07%

5 0
2 years ago
Other questions:
  • ​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the compar
    13·1 answer
  • From 2007 to 2012, the u.s. personal savings rate rose. if the additional savings were not translated into investment, keynes wo
    5·1 answer
  • The following account balances relate to the stockholders' equity accounts of Kerbs Corp. at year-end.
    14·1 answer
  • Economic models:
    14·1 answer
  • Artifacts reflecting values of an organization include Select one: a. Mission statements b. An office layout that includes open
    9·1 answer
  • Beate Klingenberg manages a​ Poughkeepsie, New​ York, movie theater complex called Cinema 8. Each of the eight auditoriums plays
    15·1 answer
  • Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Work in
    9·1 answer
  • Marginal utility is the change in total utility obtained by consuming one more unit of a good. B) change in total utility obtain
    5·1 answer
  • When a large supply of a product is available for sale, the price of the product will often
    14·2 answers
  • A job applicant identifies preparing contract documents for construction managers as something the applicant considers
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!