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olga_2 [115]
3 years ago
7

Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of

58,700 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $605,000. Fixed factory overhead cost.........................................$38,500 Fixed selling and administrative costs........................ 8,000 Variable direct materials cost per unit........................ 5.17 Variable direct labor cost per unit................................1.88 Variable factory overhead cost per unit.......................1.13 Variable selling and administrative cost per unit........ 4.50 The dollar amount of desired profit from the production and sale of the company's product is:a. $12.11b. $12.88c. $15d. $13.50
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

Correct answer is C. $ dollars.

Calculation:

Rate of Retun PU = (21%*605,000)/58,700 = 2.16

Fixed factory overhead PU = 38,500/58,700 = 0.66

Fixed selling and administration PU=  8000/58,700 = 0.14

Variable DM PU = 5.17

Variable Labour PU = 1.88

Variable FOH PU = 1.33

Variable selling and Admin PU  = 4.5

By adding all above mentioned per unit cost we get 15 dollars aprox

so

Correct answer is 15 dollar.

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Cost Flow Relationships
Lady_Fox [76]

Answer:

(A) Cost of goods sold=$7,175,000

(B) Direct material cost= $3,655,000

(C) Direct labor cost= $2,825,000

Explanation:

(A) The cost of goods sold can be calculated as follows

Cost of goods sold= Sales-gross profit

Sales= $12,375,000

Gross profit= $5,200,000

Cost of goods sold= $12,375,000-$5,200,000

= $7,175,000

(B) The direct materials cost can be calculated as follows

Direct cost of materials= materials purchased-indirect materials-materials inventory

Materials purchased= 4,125,000

Indirect materials= 180,000

Materials inventory= 290,000

Direct materials cost= 4,125,000-180,000-290,000

= $3,655,000

(C) The direct labor costs can be calculated as follows

Direct labor costs= Total manufacturing cost for the specified period-direct materials-factory overhead

Total manufacturing costs= 7,880,000

Direct materials= 3,655,000

Factory overhead= indirect labor+indirect materials+other factory overhead

= 410,000+180,000+810,000

= 1,400,000

Direct labor costs= 7,880,000-3,655,000-1,400,000

= $2,825,000

3 0
3 years ago
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
ollegr [7]

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

6 0
3 years ago
One of the likeliest places to be involved in a property-damage only accident is?
sesenic [268]

Place your car in "park."

Defend you against approaching traffic.

When a vehicle collision occurs, it might be stressful, but it's crucial to keep in mind that your safety is always the top priority. Immediately upon being involved in a collision, keep in mind the following advice:

Verify your own health and the health of any passengers.

If you require medical asisstance or can't move your car, call "911" and follow the operator's instructions.

You should relocate to a safe area (such as the closest shoulder, the median, or the rightmost lane of the road) before exiting your car to examine the situation if it is still operational and neither you nor any of your passengers have been hurt.

to know more about property damage

brainly.com/question/4539405

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7 0
1 year ago
Read 2 more answers
Moerdyk Corporation’s bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra
azamat

Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest   (PVI)

RPV = 1,000 (1+5%)^-15 = $ 481 -A

PVI = 36.25 * Annuity factor  =$ 759 -B

Future Value = A + B = $ 1,276  

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

7 0
3 years ago
What is the difference between classical economics and behavioral economics?
Nostrana [21]

3. Classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.

A major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, Behavioral economics assumes that people are irrational players.

7 0
3 years ago
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