Answer:
Budgeted selling and administrative expense= $38,600
Explanation:
Giving the following information:
Variable expenses are expected to be $13,400 in the first quarter, and $3,900 increments are expected in the remaining quarters of 2017. Fixed expenses are expected to be $21,300 in each quarter.
We need to determine the budgeted selling and administrative expense for the second quarter:
Budgeted selling and administrative expense= (13,400 + 3,900) + 21,300
Budgeted selling and administrative expense= $38,600
Answer:
Total= $ 321.25
Explanation:
Giving the following information:
Each surfboard consists of 30 separate parts totaling $ 155 direct materials and requires 3 hours of machine time to produce.
Materials handling: Number of parts $ 3.75 per part
Machining: Machine hours $ 2.00 per machine hour
Assembling: Number of parts $ 1.50 per part
Packaging: Number of finished units $ 2.75 per finished unit
Total manufacturing cost:
Direct materials= 155
Materials handling=$ 3.75* 30= $112.5
Machining: $ 2.00*3= 6
Assembling: $ 1.50*30= 45
Packaging: $ 2.75
Total= $ 321.25
Answer:
The answer is b. Up to $4 million.
Explanation:
It is critical to recognize that $3 million already spent on developing the product is the sunk cost, which is irrelevant cost that should not be included in the budget further spend for the new product.
As the new product is expected to generate a revenues of $4 million, the further cost should be spent on the new product development should not be exceeded the $4 million.
Thus, the answer is b. Up to $4 million is the correct choice.
Answer:
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
Explanation:
Current Ratio = Current Assets/ Current liabilities
An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.
Acid test Ratio= Current Assets - Inventory / Current liabilities
If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.
If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.
The inventory has been reportedly increased and it should be checked.
Inventory management should be further examined.
