Answer:
Total product cost= $150,000
Explanation:
Giving the following information:
10,000 units:
Direct materials $ 6.00
Direct labor $ 3.50
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
<u>The product cost is the sum of direct material, direct labor, and total overhead. </u>
First, we need to calculate the total fixed overhead:
Fixed overhead= 4*10,000= $40,000
Now, the total product cost:
Total product cost= 10,000*(6 + 3.5 + 1.5) + 40,000
Total product cost= $150,000
Rony as the managing director of a fabric manufacturing company enjoys an employee benefit called <u>perquisites</u><u> (D)</u>.
Let's discuss each employee benefit option we have:
Novated lease is an employee benefit that allows an employer pays for its employee car lease and car runnit costs out of its employee's salary package. An employee will choose a car he wants and a novated lease arrangement is set up between the employee, employeer, and car agent. The employer then will pay directly to the car agent from the employee's salary. The employee may save tax and running costs using this kind of leasing.
Fiscal Incidence is the combined overall economic impact of both government taxation and expenditure on the real economic income of individuals. Fiscal incidence happens when the econonmic incidence of taxation is combined with the economic incidence of government expenditure. Fiscal incidence is the overall increase or decrease in welfare that individual enjoys from the state's taxing and spending policies.
Swaps is a derivative contract which stated that the two parties will exchange the cash flows or liabilities from two different financial instruments. Swaps usually are based on a notional principal amount. The most common kind of swap is an interest rate swap.
Perquisites or fringe benefits are benefits an employee received over and above his standard salary. Some of these components are taxed separately and someother are tax-exempted. Perquisites may be classified into 3 different types:
- Taxable perquisites
- Tax-exempted perquisites
- Perquisites taxable only by employee
By offering perquisites to its employee, a company may increase its employee productivity, loyalty and retention. Prequisites could also be used as an attraction for top talent.
Learn more about Employee Benefit here: brainly.com/question/12143528
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Complete Question:
Rony is the managing director of a fabric manufacturing company. In order to limit the profit of the company and therefore, the txes on the business the management pays a hefty amount to Rony as year-end bonuses. The company also pays for his family cavations and foreign trips. The benefits enjoyed by Rony are called ____
a. Novated leases
b. Fiscal incidences
c. Swaps
d. Perquisites
Answer:
$161 million
Explanation:
Given that,
Opening Retained earnings balance = $547 million
Ending retained earnings balance = $594 million
Dividends paid to preferred stockholders = $37 million
Dividends paid to common stockholders = $77 million
Net Income:
= Change in Retained earnings + Preferred Stock Dividend + Common Stock Dividend
= ($594 million - $547 million) + $37 million + $77 million
= $47 million + $37 million + $77 million
= $161 million
It is trying to create opportunities to trade with South America
