Answer:
b. $303,000
Explanation:
The activity rate
1. Machining = 
= $ 20 per machine hour
2. Machine set up =
= $ 500 per set up
3. Product design =
= $ 22000 per product
4. Order size =
= $ 26 per direct labor hour
Now the ABC cost (Product T05P)
1. Machining = 
= 4000 x 20
= $ 80,000
2. Machine set ups = 
= 90 x 500
= $ 45,000
3. Product design = 
= 1 x 22000
= $ 22,000
4. Order size = 
= 6000 x 26
= $ 156,000
Therefore, the total manufacturing overhead cost assigned to product T05P = 80000 + 45000 + 22000 + 156000
= $ 303,000
Answer:
The correct answer is option d.
Explanation:
The 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10.
The profit to a firm is maximized when the marginal revenue earned and marginal cost incurred are equal.
When the firm is producing the 100th unit of output the marginal revenue is $1 higher than the marginal cost. This implies that the production of the 100th unit increases the firm's profit by $1.
Answer:
$32,000
Explanation:
Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.
Cost of goods sold = Sales value - Gross Profit
Gross profit = Sales value - Direct costs - overhead costs
Gross profit per unit = $120 - ($50 + $ 20 + $10)
Gross profit per unit = $40 per unit
Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000
Budgeted sales value = Selling price per unit × Budgeted sales units
= $120 × 400 chairs = $48000
Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value
= $48000 - $16000 = $32000
<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.
The right answer for the question that is being asked and shown above is that: "a. rivalry among existing firms in an industry" Information-based industries are most susceptible to one of Porter’s five forces which is the a. rivalry among existing firms in an industry
Answer:
Entries are given below
Explanation:
Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis
June 30, 2021 ( issuance of bonds)
DEBIT CREDIT
Cash 1,042,973
Bonds payable 970,000
Premium on bonds payable 72,973
December 31, 2021 ( interest expense)
DEBIT CREDIT
Interest Expense 62,578
(1,042,973 x 12% x 6/12)
Premium on bonds payable 472
Cash 63,050
(970,000 x 13% x 6/12)
June 30, 2022 (interest expense)
DEBIT CREDIT
Interest Expense 62,550
(1,042,973-472) x 12% x 6/12)
Premium on bonds payable 500
Cash 63,050
(970,000 x 13% x 6/12)
