Answer:
1a. $2.67 cost per unit
1b. $0.3 cost per unit
1c. Yes
Explanation:
1a. Calculation for what will be the inspection cost per unit If an inspector is hired
The following details were given in the question.
Defective average =3/100= 0.03
inspection rate = 30 per hour
Cost of inspector = 8 per hour
Correction cost = $10 each
Using this formula
Hired inspector =Cost per hour/Current production rate per hour
Let plug in the formula
Hired inspector=8 per hour/30 rate per hour
Hired inspector =0.267×100
Hired inspector=$2.67 cost per unit
1b. Calculation for what will be the defective cost per unit If an inspector is not hired
Using this Formula
No inspector=Defect rate %/Cost per defective
Let plug in the formula
No inspector= 3/100×$10
No inspector= $0.3 cost per unit
1c. Based on the above calculation the inspector should be hired.
Answer:
$192,000
Explanation:
Calculation for What is the value of ending inventory under variable costing
Using this formula
Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]
Let plug in the formula
Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]
Value of ending inventory= ($15 units+$9 units)×8,000 units
Value of ending inventory=$24 per units×8,000 units
Value of ending inventory = $192,000
Therefore the value of ending inventory under variable costing will be $192,000
Answer:
The amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Explanation:
The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.
The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.
If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.
Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.
From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.
Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
option (c) $25 million
Explanation:
Data provided in the question:
The marginal propensity to consume in Frugalia, MPC = 0.60
Increase in spending = $10 million
Now,
The total increase in income
=
× Increase in spending
on substituting the respective values, we get
=
× $10 million
=
× $10 million
or
= 2.5 × $10 million
or
= $25 million
Hence,
The answer is option (c) $25 million