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3 years ago

Crusher Company has provided the following data for maintenance cost:

Business

1 answer:

Firdavs [7]3 years ago

7 0

Answer:

Total Fixed Cost: $13,020

Explanation:

Fixed cost is calculated using high low method.

High low method seeks to find variable cost per hour / unit by dividing the difference of cost (total cost at two levels) with difference of activity level. Than variable cost is reduced from total cost to identify the fixed cost. Below is the calculation:

Current year cost: $ 37,850 Current year machine hours: 19,100

Prior year cost: $ 33,300 Prior year machine hours: 15,600

Variable cost per machine hour = Current year cost - Prior year cost

Current year machine hour - prior year machine hour

Variable cost per machine hour: 37,850 - 33,300 = $1.30 per machine hour

19,100 - 15,600

Variable cost current year: ($1.30 * 19,100) = $24,830

Variable cost prior year: ($1.30 * 15,600) = $20,280

Fixed cost: Total cost - variable cost

Fixed cost current year: 37,850 - 24,830 = $13,020

Fixed cost prior year: 33,300 - 20,280 = $13,020

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Which of the following is a condition necessary to exclude an obligation from current liabilities? Entry field with incorrect an

lutik1710 [3]

Answer:

The answer is: Obligation that has a distant due date exceeding company's operating cycle.

Explanation:

A current liability is a financial obligation due within one year (or one normal operation cycle).

So a financial obligation that has a due date that exceeds a company´s operating cycle should have been directly classified as a long term liability (or a non current liability) in the first place. It simply is not a current liability that is changed into a long term liability, it always was a long term liability.

The other options represent the steps necessary for turning a current liability into a long term liability.

Intend to refinance the obligation on a long-term basis.
Demonstrate the ability to complete the refinancing.
Subsequently refinance the obligation on a long-term basis.

7 0

3 years ago

1. Understanding opportunity costYou work as an assistant coach on the university basketball team and earn $15 per hour. One day

Gwar [14]

Answer:

The correct answer is letter "D": $24.

Explanation:

Opportunity cost can be defined as the cost of the best next available option after taking another decision in regards to a situation. It is also the return that the chosen option provides compared to the return that could have provided the option that was forgone.

In this case, choosing to go to the local carnival will represent losing one hour of working as a coach assistant ($15). Besides, as there is a $9 admission fee to the carnival, you will need to spend that money. Thus, the total opportunity cost of going to the carnival instead of working is $24 ($15+$9=$24).

6 0

3 years ago

A common size analysis requires the representation of financial statement data relative to a single financial statement item (or

MArishka [77]

Answer:

The correct answer is letter "C": Total assets.

Explanation:

Total assets represent the total amount of assets that an individual or entity possesses to obtain a return from them. In accounting, it is obtained by subtracting the previous period total assets minus the current period total assets. They appear in the Balance Sheet of a company and is the baseline or common base item to which other line items are expressed.

7 0

3 years ago

On December 31, 20X2 and 20X3, Apex Co. had 3,000 shares of $100 par, 5% cumulative preferred stock outstanding. No dividends we

Anarel [89]

Answer: the correct answer is a disclosure of $20,000

Explanation:

The annual preferred stock dividend is $15,000 = 3,000 x $100 x 5%. Total dividends in arrears at the end of 20X3 are therefore $20,000 = 2 years x $15,000 - $10,000 paid.

Dividends in arrears are footnoted only. They are not recognized as a liability until they are declared.

7 0

3 years ago

In 2022: Net sales are expected to increase by $9.70 million. Cost of goods sold is expected to be 60 percent of net sales. Depr

Anuta_ua [19.1K]

Answer:

The question is not complete.

Here is the complete question:

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2021:

Net sales = $38,900,000.

Cost of goods sold = $22,220,000.

Other operating expenses = $6,400,000.

Addition to retained earnings = $1,210,500.

Dividends paid to preferred and common stockholders = $1,943,000.

Interest expense = $1,850,000.

The firm’s tax rate is 30 percent.

In 2022:

Net sales are expected to increase by $9.90 million.

Cost of goods sold is expected to be 60 percent of net sales.

Depreciation and other operating expenses are expected to be the same as in 2021.

Interest expense is expected to be $2,125,000.

The tax rate is expected to be 30 percent of EBT.

Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected in 2022. (Enter your answer in dollars, not millions.)

Here is the answer:

Addition to retained earnings is $ 5,753,500

Explanation:

Addition to retained earnings is derived after deducting dividend paid to preferred and common stockholders from the earnings after tax of the entity.

In the case of PattyCake’s Athletic Wear Corp. , it is important to calculate earning after tax before deducting dividend to get addition to retained earnings:

Calculation of Earning after Tax

Earning after Tax is derived by deducting, cost of sales, operating expenses, interest and tax from the entity net sales.

Net Sales ( $38,900,000. + $9,900,000) 48,800,000

Cost of Sales (0.6 * 48,800,000) (29,280,000)

Gross profit 19,520,000

Depreciation and other operating expenses (6,400,000)

Earning before Interest and Tax 13,120,000

Interest (2,125,000)

Earning before Tax 10,995,000

Tax @ 30% EBT (3,298,500)

Earning after Tax 7,696,500

After this, dividend paid is removed to get addition to retained earnings

= $7,696,500 - $1,943,000

=$ 5,753,500

5 0

3 years ago