Answer:
<em>Consolidated Assets 850,000</em>
Explanation:
We need to calcualte the alue of the purchased portion of Slat.
total assets - non-controlled = proportional owned assets
250,000 - 50,000 = 200,000
The consolidated net assets would be:
Pallet Company 650,000
Slat Company 250,000
non-controlling (50,000)
<em>Consolidated Assets 850,000</em>
Answer:
d. $40 F
Explanation:
Calculation to determine what The variable overhead efficiency variance for June is
First step is to calculate the SH
SH = 2,500 units × 0.4 hour per unit
SH= 1,000 hours
Now let calculate the Variable overhead efficiency variance
Using this formula
Variable overhead efficiency variance = (AH - SH) × SR
Let plug in the formula
Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour
Variable overhead efficiency variance= $40 F
Therefore Variable overhead efficiency variance is $40 F
Answer:
Average fixed cost for 20 units = $7
Explanation:
<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>
The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.
Average fixed cost = Total fixed cost / Total units produced.
Hence , Total fixed cost = Average fixed cost × units produced
DATA
AFC - $14
Units - 10 units
Total fixed cost = 10 × 14 = $140
Average fixed cost for 20 units =Total fixed cost / Number of units
140/20 = $7
Average fixed cost for 20 units = $7
You should always try to meet the word limit
Answer:
The formula is not used if consumer demand and ordering and holding costs are not constant.
Explanation:
E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.
