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
What is an advertising allowance
Aliun [14]

Answer:

An advertising allowance is money that a product manufacturer or service provider pays to a retailer to get the word out about their product. ... By helping the retailer pay its advertising costs, the company's advertising allowance gives the retailer an incentive to carry that product.

5 0
2 years ago
True or faults caffeine and other energy boosters can be used to effectively compensate for fatigue
Zina [86]

True because coffee and other drinks can last up to hours of energy

7 0
2 years ago
Read 2 more answers
Journalize the following transactions for Reed Company. Assume a perpetual inventory system. Also, assume a constant gross profi
igor_vitrenko [27]

Answer:

The Journal entries are as follows:

(i) On April 6,

Cash A/c Dr. $5,000

To Sales                     $5,000

(To record the cash sales )

(ii) On April 6,

Cost of goods sold A/c Dr. $3,000

To merchandise inventory               $3,000

(To record the cost of goods sold)

(iii) On April 12,

Sales return and Allowances A/c Dr. $630

To cash                                                          $630

(To record the sales return)

(iv) On April 12,

merchandise inventory A/c[(630 ÷ 5,000) × 3,000] Dr. $378

To cost of goods sold                                                                     $378

(To record the cost of sales return and allowances

4 0
3 years ago
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F
yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

                                      = 18,000 books

Variable Costs Calculation :

Cost of goods sold                                                           $630,000

Variable selling expenses ($5 × 18,000 books)               $90,000

Variable administrative expenses( 4% × $ 900,000)       $36,000

Total Variable Costs                                                         $756,000

Therefore,

Contribution Margin =  $756,000÷  $ 900,000

                                  = 0.84 or 84 %

7 0
3 years ago
Companies A and B each have the same level of total assets, the same tax rate, and the same earnings before interest and taxes (
anygoal [31]

Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

5 0
3 years ago
Other questions:
  • Winston Clinic is evaluating a project that costs $52, 125 and has expected net cash inflows of $12,000 per year for eight years
    13·1 answer
  • Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
    8·1 answer
  • When food lion grocery stores offer milk and eggs at all of its locations, it is providing customers with ____ utility.
    6·1 answer
  • Since bond market values are expressed as a percentage of their bond value, a $1,000 bond that is being sold at 93 would be trad
    12·1 answer
  • What is the best free djing app to use with my dj board?
    8·1 answer
  • If the market maker is willing to purchase the entire block of 1,500 shares from Amara and, from that block, resell 1,000 shares
    5·1 answer
  • Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $31.86 per share. The stock would pay
    15·1 answer
  • Conner walked past the candy section in the grocery store and quickly stuffed a handful of candy bars into her purse. A store se
    12·1 answer
  • What type of living cost in the u. S. Rose a record 17 percent over the last year, as home prices and construction costs surged
    5·1 answer
  • In the market for bottled water, fresh springs has a 30 percent share of the market, swiss springs has a 27 percent share, l'eau
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!