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IrinaVladis [17]
3 years ago
7

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is

paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first full year of coverage?
Business
1 answer:
jasenka [17]3 years ago
6 0

Answer:

$720 and $180

Explanation:

According to the scenario, computation of the given data are as follows:

Premium for 3 years = $2,700

So, premium for 1 year = $2,700 ÷ 3 = $900 per year

Manufacturing operation percentage = 80%

Selling and administrative operation percentage = 20%

So, Premium for manufacturing operation = $900 × 80% = $720

And Premium for selling and admin operation = $900 × 20% = $180

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Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.5
stellarik [79]

Answer:

correct option is (A) 16,500 units.

Explanation:

given data

shirts sold = $7.50

variable cost  = $2.25

after tax net income = $5,040

selling price  =$10

solution

we get here first fixed cost that is

Break even sales units = Fixed costs ÷ Contribution per unit   .............1

put here value

20000 = \frac{fixed \  cost }{7.50 -2.25}

Fixed costs = $105000  

and

Fixed costs coming year will be

Fixed costs coming year =  ($105000 × 1.10)

Fixed costs coming year = $115500

and

Variable cost =  $2.25 + ($2.25 × \frac{1}{3} )

Variable cost = $3

so that Contribution margin  will be

Contribution margin = Sales price - Variable cost ............2

Contribution margin = $10 - $3

Contribution margin = $7

and

break even sales units is

break even sales  = \frac{115500}{7}  

break even sales  = 16500 units

so correct option is (A) 16,500 units.

4 0
3 years ago
What is the yearly salary and hourly wage for a novel author? it's for a project. ​
likoan [24]
The annual salary for novel author is $64,349. Approximately $30.94 an hour.
5 0
3 years ago
Hockey Accessories Corporation manufactured 21 comma 600 duffle bags during March. The following fixed overhead data pertain to​
Agata [3.3K]

Answer:

D) $8,200 favorable

Explanation:

Hockey Accessories Corporation manufactured 21,600 duffle bags during March. The following data pertain to ​March:

                                                      Actual                      Static Budget

Production                                 21,600 units                22,000 units

Machine hours                           1,150 hours                  2,200 hours

Fixed overhead costs                 $ 84,200                    $ 92,400

What is the amount of fixed overhead spending​ variance?

Hockey Accessories Corporation estimated its fixed overhead costs at $92,400, but the actual overhead costs were only $84,200. The difference between estimated and actual costs is $8,200 favorable variance (= $92,400 - $84,200) since the fixed overhead costs were lower than estimated.

4 0
2 years ago
When it comes to saving money, what is a good rule of thumb
Mamont248 [21]
Buy what u need when u need it not what u want when u want my dad always said

7 0
3 years ago
Read 2 more answers
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
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