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Xelga [282]
3 years ago
6

Monty Inc. produces organic cranberry juice from cranberries it farmed. Unfortunately, it has been a bad year for cranberries be

cause of severe cold weather. Monty has only 10,000 litres of juice. It usually sells 15,000 litres at $3.10 per litre. The variable costs of farming the cranberries are $0.90 per litre. Monty has loyal customers, but its managers are worried that the company will lose customers if it does not have juice available for sale when people stop by the farm. A neighbour is willing to sell 5,000 litres of extra cranberry juice at $3.00 per litre.
Required:
Using the general decision rule, what is the most per litre that Riverbed's managers would be willing to pay for additional juice?
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer:

$3.10 per litre

Explanation:

Riverbed will agree to buy the additional cranberries for at most $3.10 per litre since this is their normal selling price. They can buy at this price and accept to not make profit since they are out to satisfy customers now and are not necessarily looking to make profit.

Therefore cost of purchase of extra cranberries would equal selling price at maximum

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Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginn
NNADVOKAT [17]

Under- or Over-Applied Manufacturing Overhead:

Under- or Over-Applied Manufacturing Overhead refers to the balance in the manufacturing overhead control account after the actual overhead costs that were incurred and the applied overhead for the period has been recorded

1 .The appleid overhead is the predetermined rate of $2.40 per machine hour multiplied by the actual number of machine hours (75,000), so it is $180,000.

The applied overhead is debited to work-in-process inventory and credited to the manufacturing overhead account.

2. The underapplied or overapplied overhead for the year is the difference between the actual and applied overhead. We can show it in the T-account like this:

3. The company estimated its total overhead cost to be $192,000 and its total machine hours to be 80,000. The actual overhead cost was $184,000 and the actual machine hours were 75,000. We can see that the main reason why the manufacturing overhead was underapplied was the fact that it worked fewer machine hours than anticipated with a proportional decrease in the manufacturing overhead costs incurred. This is normal because an element of manufacturing overhead is fixed.

To know more about overhead applied manufacturing overhead:

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3 0
1 year ago
ay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 23,000 units at a price of $350 each. Product
Fittoniya [83]

Answer:

$21

Explanation:

The computation of the sales commission per unit sold is shown below:

= Selling price per unit × sales commission percentage

= $350 × 6%

= $21

By multiplying the selling price per unit with the sales commission percentage we can get the sales commission per unit and the same is shown above in the calculation part.

All other information is not relevant. Hence, ignored it

3 0
3 years ago
The primary goal of ________ is to get the right people interested in working for an organization or in a specific job, then per
-BARSIC- [3]

Recruiting.

Recruiting is the process of attracting, screening, selecting, and retaining top talent for jobs.

4 0
3 years ago
Read 2 more answers
In a "Dutch auction" for new stock, individual investors place bids for shares directly. Each potential bidder indicates the pri
photoshop1234 [79]

Answer:

The statement is true

Explanation:

Market-clearing price is the price of a product or a service in which the quantity sold is equal to the quantity demanded and There are no surpluses or shortfalls on the market, it's also known as the price of equilibrium. The theory suggests that consumers tend to shift to that price

6 0
3 years ago
Read 2 more answers
On April 16, 2018, Rodriguez Corporation reacquired 12,000 shares of its own $10 par stock for $660,000 cash. On November 4, 201
never [62]

Answer:

The answer is a) Credit to additional Paid In Capital: Treasury Stock Transactions of $10,000.

Explanation:

The repurchased price per share in April 16,2018 is equal to: 660,000/12,000 = $55 per share;

Thus, once the reissued of these 12,000 repurchased shared took place, common stock account will be credited at the amount equal to 55 x Number of share reissued. In case the reissued price is higher than $55, the surplus amount will be Credited into Paid-in Common share account to present the difference between cash receipt and common share recorded; in case reissued price is lower than $55, Retained earning account will be debited to present the difference between cash receipt and common share recorded

As a result, the reissued of share on November 4,2019 will include a $10,00 credited to additional Paid In Capital; calculated as (65-55) x 1,000 = $10,000.

6 0
3 years ago
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