1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
3 years ago
11

Hot Dog Express (HDE) is currently buying its buns from Buns-For-All for $0.50 per dozen. Each month, it purchases 14,000 dozen

buns. HDE is considering making its own buns for cost-cutting and quality reasons. It has determined the following costs:
materials, $0.20;
direct labor, $0.10;
variable factory overhead cost, $0.04; and total (existing) fixed costs, $3,000 per month.
Required:
A) From an accounting point of view only, should HDE make or buy its buns?
Business
1 answer:
Greeley [361]3 years ago
3 0

Answer:

Cost of Make = $2,240

Explanation:

The computation of Saving in Cost by Make or buy is shown below:-

                                               Make           Buy

Material                                   $2,800

($0.20 × 14,000 Buns)  

Direct Labor                          $1,400

($0.10 × 14,000 Buns)

Variable Factory Overhead $560

($0.04 × 14,000 Buns)

Purchase Cost of Buns                         $7,000

(14,000 × $ 0.50)

Total Cost                             $4,760      $7,000

Therefore the Saving in Cost by Make = $7,000 - $4,760

= $2,240

You might be interested in
An economy has five people: george, sarah, mason, abbot, and jin. george works for plastics, inc., 40 hours a week. sarah works
Katena32 [7]
The unemployed people in this economy are MASON AND ABBOT. 
Unemployment is said to occur in an economy, when people who are in the working age bracket actively search for work for a long time without getting any. There are different types of unemployment. Unemployment rate is usually used to gauge how healthy an economy is. In the scenario given above, it can be seen that both Mason and Abbot are of working age and they are both actively searching for work without finding one. <span />
3 0
3 years ago
The income statement for the Shamrock, Inc. for the month ended July 31 shows Service Revenue $17,510, Salaries and Wages Expens
Greeley [361]

Answer:

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

July 31

Dr Income summary $14,230

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

July 31

Dr Income summary 3,280

Cr retained earnings 3,280

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

Explanation:

Preparation of the closing journal entries

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

(To close revenue account)

July 31

Dr Income summary $14,230

(9,760+3,070+1,400)

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

(To close expense accounts)

July 31

Dr Income summary 3,280

(17,510-14,230)

Cr retained earnings 3,280

(To close net income/loss to retainedearnings)

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

(To close dividends to retained earnings)

5 0
3 years ago
On February 2, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell the divi
ikadub [295]

Answer: $40,000

Explanation:

The gain from discounted operations assuming no income taxes, is the gain from the sale of the asset less the net operating losses in the period.

= Gain from Sales of Asset - Net losses in period

= 90,000 - ( 20,000 + 30,000)

= $40,000

8 0
3 years ago
Answer the next question on the basis of the following data. Output Total Cost 0 $24 1 33 2 41 3 48 4 54 5 61 6 69 The average f
Nezavi [6.7K]

Answer:

Option (A) is correct.

Explanation:

The average fixed cost is determined by dividing the total fixed cost by number of units produced.

Given that,

Fixed cost = $24

The average fixed cost of producing 3 units of output is:

= Total Fixed cost ÷  Number of units produced

= $24 ÷  3

= 8

Therefore, the average fixed cost of producing 3 units of output is $8.00.

8 0
3 years ago
The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. When demand is inelast
Bezzdna [24]

Answer:

The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. FALSE, the real effect of taxes is measured by the price elasticity of the demand and the supply.

When demand is inelastic and supply is elastic, the burden of a tax falls mainly on producers. FALSE, when the price elasticity of demand is inelastic and the price elasticity of supply is elastic, the burden of tax falls mainly on the consumers.

When demand is elastic and supply is inelastic, the burden of a tax falls mainly on consumers. FALSE, when the price elasticity of demand is elastic and the price elasticity of supply is inelastic, the burden of tax falls mainly on the suppliers.

An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions. TRUE

5 0
3 years ago
Other questions:
  • Reuben's boss recently took him off probation because Reuben had met performance standards that he and his boss had agreed upon.
    6·1 answer
  • For the past year, Kayla, Inc., has sales of $44,432, interest expense of $3,074, cost of goods sold of $14,909, selling and adm
    8·1 answer
  • Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of int
    14·1 answer
  • A worker in which career pathway might need to memorize lines
    9·1 answer
  • 4. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inven
    10·1 answer
  • A company had beginning inventory of 5 units that cost $10 each. During the month, 15 units were purchased for $11 each. The com
    9·1 answer
  • The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-
    10·1 answer
  • If five different errands are allocated to five time slots, 12-1pm,1-2pm,2-3pm,3-4pm and 4-5pm, how many distinct schedules are
    14·1 answer
  • Say Mary would like to create a scholarship for $2,500 per year at ECU in her family's name. If the money market rate where the
    12·1 answer
  • Kế toán công ty nên sử dụng mô hình tổ chức bộ máy kế toán như thế nào để phù hợp với tình huống sau đây:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!