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Hoochie [10]
3 years ago
6

Bell’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Var

iable Overhead 3000 Fixed Overhead ? The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
Business
1 answer:
Korolek [52]3 years ago
3 0

Answer:

8,000= fixed overhead

Explanation:

Giving the following information:

Bell’s Shop can make 1000 units of a necessary component with the following costs:

Direct Materials $24000

Direct Labor 6000

Variable Overhead 3000

Fixed Overhead ?

The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.

Buy= 41,000/1,000= $41

Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead

41,000= 33,000 + fixed overhead

8,000= fixed overhead

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eBook Problem Walk-Through Byron Books Inc. recently reported $12 million of net income. Its EBIT was $28.6 million, and its tax
snow_lady [41]

Answer:

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Interest expense = $12,600,000

Explanation:

Earnings Before Tax (EBT) =  Net Income  / (1 - Tax Rate)

Earnings Before Tax (EBT) =  $12,000,000 / ( 1 - 0.25)

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              Income Statement

Details                               Amount

EBIT                                  $28,600,000

Less: Interest expenses  <u>$12,600,000</u>

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4 0
3 years ago
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. F
masha68 [24]

Answer:

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b) LIFO : closing inventory = $12,780

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Mar 25 purchase = 20*$64 =1,280

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WAM= (Opening cost + purchases cost)/(opening units +units purchased)

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WAM(after the first sale) = ($4,961.25 +$6,820 + $12,800)/(90+110+200)

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Explanation:

The Question is incomplete. I have provided the missing part of the question below.

Date Activities Units Acquired at Cost Units Sold at Retail

Mar. 1  Beginning inventory  150 units  $52.00/unit    

Mar. 5  Purchase  250 units  $57.00/unit    

Mar. 9  Sales      310 units  $87.00/unit

Mar. 18  Purchase  110 units  $62.00/unit    

Mar. 25  Purchase  200 units  $64.00/unit    

Mar. 29  Sales      180 units  $97.00/unit

     Totals  710 units   490 units

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