Answer:
Maintenance total cost: 325,000
Cost Allocated to Packagin from Maintenance 162,500
Explanation:
![\left[\begin{array}{ccccc}&Maintenance&Cafeteria&Assembly&Packaging\\Employees&4&&8&8\\Direct \: Cost&270,000&275,000&&\\Allocate C&55,000&-275,000&&\\Subtotal&325,000&&110,000&110,000\\Allocate M&-325,0004&-15,760&-162,500&-162,500\\Total&&&272,500&272,500\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%26Maintenance%26Cafeteria%26Assembly%26Packaging%5C%5CEmployees%264%26%268%268%5C%5CDirect%20%5C%3A%20Cost%26270%2C000%26275%2C000%26%26%5C%5CAllocate%20C%2655%2C000%26-275%2C000%26%26%5C%5CSubtotal%26325%2C000%26%26110%2C000%26110%2C000%5C%5CAllocate%20M%26-325%2C0004%26-15%2C760%26-162%2C500%26-162%2C500%5C%5CTotal%26%26%26272%2C500%26272%2C500%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will divide the cafeteria cost by the sum of employees of the department and maintenance.
4+8+8 = 20
275,000/20 = 13,750
Then we multiply this by each department employees and add them to their cost.
Maintenance total cost after adding cafeteria is 325,000
Then we do the same, we divide this amount for the emplyees of the processsing department:
8 + 8 = 16
325,000/16 =20,325.5
Then we multiply by 8 employees: 162,500
Maintenance total cost: 325,000
Cost Allocated to Packagin from Maintenance: 162,500
Answer:
Journal Entries
Account Dr. Cr.
1.
Repair and maintenance Expense $250
Cash $250
2.
Delivery truck $800
Cash $800
Explanation:
Property, plant and equipment are reported in the Fixed asset of the balance sheet. These assets are the depreciated. Fixed assets are initially recorded at cost.
Initially the amount capitalized includes the acquisition cost or purchase price and any direct cost incurred to make asset ready to use.
Any cost incurred to improve the efficiency of the asset will also be capitalised. In this question oil change is a routine maintenance cost needed to operate the asset. Installation of Special gear unit actually improved the efficiency of the asset as a whole. So, it is capitalised.
Answer:
A. 122 days
Explanation:
The computation of the cash conversion cycle is shown below:
= DAys sales outstanding + days inventory outstanding - days payable outstanding
where
Days sales outstanding is
= 365 ÷ $2.8 ÷ $0.6
= 78.16 days
The days inventory oustandings is
= 365 ÷ $2.3 ÷ $0.5
= 79.35 days
And, the days payable outstanding is
= 365 ÷ $2.1 ÷ $0.2
= 34.76 days
Now the cash conversion cycle is
= 78.16 days + 79.35 days - 34.76 days
= 122.75 days
= 122 days
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