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BartSMP [9]
3 years ago
7

Grover Company has the following data for the production and sale of 2,500 units. Sales price per unit $ 950 per unit Fixed cost

s: Marketing and administrative $ 625,000 per period Manufacturing overhead $ 300,000 per period Variable costs: Marketing and administrative $ 40 per unit Manufacturing overhead $ 70 per unit Direct labor $ 130 per unit Direct materials $ 250 per unit What is the full cost per unit of making and selling the product?
Business
1 answer:
d1i1m1o1n [39]3 years ago
3 0

Answer:

Under Variable costing 490

Under absorption costing 860

Explanation:

<u>If Grover use variable costing:</u>

DM 250

DL 130

FO 70

S&A 40

Variable cost 490

<u>If Grover use absorption cost:</u>

The fixed cost will be include for the unit cost as well.

S&A           625,000

Overhead 300,000

Total fixed 925,000

The fixed Cost will be distribute among the 2,500 units produced

925,000/2,500 = 370

Lastly, variable and fixed are added for total unit cost

Fixed + Variable = 370 + 490 = 860

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Roberto Designers was organized on January 1, 2018. The firm was authorized to issue 140,000 shares of $5 par value common stock
Phoenix [80]

Answer:

The total stockholder's equity at the end of the year will be $352,000.

Explanation:

The issue of common stock at $7/share= 14,000*$7=$98,000

The issue of common stock at $8/share= 28,000*$8=$224,000

The net income is $140,000.

The dividends paid= $70,000.

Purchase of treasury stock= 4000*$10=$40,000

The total stockholder's equity

=The issue of common stock at $7/share+The issue of common stock at $8/share+The net income-The dividends paid-Purchase of treasury stock

=$98,000+$224,000+$140,000- $70,000-$40,000

=$352,000.

7 0
3 years ago
The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of
kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0
3 years ago
Donna, the office manager, spends a large part of her day working closely with those whom she supervises to successfully accompl
zubka84 [21]
It seems that you have missed the necessary options for us to answer this question, so I had to look for it. Anyway, here is the answer. Based on the given description above about Donna, the type of managerial skill she is exhibiting is HUMAN. Hope this answers your question. Have a great day!
3 0
2 years ago
Which of the following is the best example of a positive question?a. How are price and quantity demanded related?b. How should t
fredd [130]

Answer:

a. How are price and quantity demanded related?

b. How should the government deal with the next recession?

Explanation:

A positive question is the kind of question the answer of which is simply yes or no. They ask about how one thing is rather than how something should be.

In above question, there are two questions which fall in the category of positive questions because of the way they are formed and what they are asking.

6 0
2 years ago
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed
Julli [10]

Answer:

Explanation:

1.

Direct labour hours work during the period:

Product S=72,400 units×1 hour=72,400 hours

Product W=18,100 units × 3 hours=54,300 hours

Total labour hours=126,700 hour

Predetermined overhead rate=$958,396/126,700  =7.56 per hour

2.

Unit product cost of S = Direct Material cost + Direct labour cost + Overhead = 12+16+7.56*1 = $35.56

Unit product cost of W = Direct Material cost + Direct labour cost + Overhead = 34+13+7.56*3 = $69.68

4 0
2 years ago
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