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NISA [10]
3 years ago
13

Preparing an Ending Finished Goods Inventory Budget Andrews Company manufactures a line of office chairs. Each chair takes $14 o

f direct materials and uses 1.9 direct labor hours at $12 per direct labor hour. The variable overhead rate is $1.10 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 630 chairs in ending inventory. There is no beginning inventory of office chairs. Required: 1. Calculate the unit product cost. Round your answer to the nearest cent. $ 2. Calculate the cost of budgeted ending inventory. Round your answer to the nearest dollar. $
Business
2 answers:
tigry1 [53]3 years ago
3 0

Answer:

Consider the following calculations

Explanation:

1. Direct material         $14

Direct labor (16*1.9) 3.04

Variable overhead (1.1*1.9) 2.09

Fixed overhead (1.5*1.9) 2.85

Unit product cost          $21.98

2. Cost of budgeted ending inventory = 21.98*620 = $13, 628

marissa [1.9K]3 years ago
3 0

Answer:

1- Unit product cost = $41.93

2-  Cost of budgeted ending inventory = $26416

Explanation:

Before calculating unit product cost, lets first understand what product cost is and what elements form part of it.

So the <em>product costs are the costs incurred to produce/manufacture a product</em> and the unit product cost is the total production cost per unit. These costs encompass prime costs (all of the direct costs, direct material, labor and expenses if any?) and conversion costs ( labor cost and manufacturing overhead).

Now lets begin with adding all the per unit costs to come to unit product cost.

UPC= direct material + labor + variable overhead + fixed overhead

UPC = $14 + $22.8(12$×1.9) + $2.09($1.1×1.9) + $3.04($1.6×1.9)

Unit product cost = $41.93

Now since we have calculated the unit product cost we can simply multiply it with the budgeted number of chairs to come to the cost of budgeted ending inventory.

Ending inventory=630

Cost of budgeted ending inventory = 630×$41.93

Cost of budgeted ending inventory = $26415.9

CBI= $26416 - after round off.

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Answer: Stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals

Explanation:

Strategic alliance occurs when two or more companies join hands together in order to achieve strategic outcome that's mutually beneficial to the parties involved.

It should be noted that companies to into Strategic alliance in order to improve market access, improve supply chain efficiency and to also gain economies of scale.

Lastly, it should be noted that strategic alliances stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals.

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3 years ago
Fragment Company is a wholesaler that sells merchandise in large quantities. Its catalog indicates a list price of $300 per unit
iren2701 [21]

Answer:

Recognized Sales Value = $18,000

Explanation:

Fragment company selling Price is $300/Unit

40% trade discount is offered for purchases of 50 units and more. That is, $300 x 40% = $120.

This implies anyone buying 50 or more will pay only $180/Unit ($300 - $120)

Customer Purchased 100 units

Sales terms is FOB, which implies Fragment is responsible for transportation costs of the products from his warehouse to the Port of Shipment including loading onto the ship. The Buyer will be responsible for Marine Freight expense, Insurance, Off-loading and shipment to his own warehouse

The $7 Per Unit indicated will account for inland transport to Port of shipment

Recognized Sales  =  100 units x $180 = $18,000

Cost of Haulage (Carriage outwards) is $7 x 100 units = $700

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3 years ago
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3 years ago
What can cause the market demand curve for day-old bread -- an inferior good -- to shift rightward (an increase in demand)
Sedbober [7]

A factor that can cause the market demand curve for day-old bread to shift rightward is a decrease in income.

<h3>What is an inferior good?</h3>

An inferior good is a good whose demand falls when income rises and increases when income falls. An inferior good is a good whose demand increases when income falls.

<h3>What is an increase in demand?</h3>

An increase in demand occurs when the demand for a good increase as a result of factors other than a change in the price of a good. When there is an increase in demand, there would be a shift to the right of the demand curve.

For more information about the increase in demand, please check: brainly.com/question/25871620

5 0
2 years ago
A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as indicated below. Calc
maksim [4K]

Answer:

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

Explanation:

Giving the following information:

Project X t Cash Flows

0 -44,000

1 10,000

2 10,000

3 15,000

4 18,000

5 15,000

<u>The payback period is the time required to cover for the initial investment. We need to discount each cash flow using the following formula:</u>

PV= Cf/(1+i)^n

Year 1= 10,000/1.09= 9,174.31 - 44,000= -34,825.69

Year 2= 10,000/1.09^2= 8,416.80 - 34,825.69= -26,408.89

Year 3= 15,000/1.09^3= 11,582.75 - 26,408.89= 14,826.14

Year 4= 18,000/1.09^4= 12,751.65 - 14,826.14= - 2,074.49

Year 5= 15,000/1.09^5= 9,748.97 - 2,074.49= 7,674.48

<u>To be more accurate:</u>

(2,074.49/7,674.48)*365= 99

It will take 5 years and 99 days to recover for the initial investment at a discount rate of 9%.

8 0
3 years ago
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