Answer:
The correct answer is D
Explanation:
Computation of allocation of factory overhead cost for the Job NO 117:
Now, computing the rate of overhead allocation as:
Pre- determined rate of overhead allocation = Estimated aggregate overhead / estimated number of labor hours
where
Estimated aggregate overhead is $95,000
Estimated number of labor hours is 9,500 hours
Putting the values above:
= $95,000 / 9,500 hours
= $10 per hour.
Computing the overhead cost to be allocated to Job No 117 as:
Overhead cost to be allocated to Job No 117 = Number of direct labor hours × pre- determined rate of overhead
where
Number of direct labor hours is 2,300 hours
Pre- determined rate of overhead allocation is 10 per hour
Putting the values above:
= 2,300 hours × $10 per hour
= $23,000
Answer:
$12.50
Explanation:
Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.
Whereas fixed costs are those costs which remains constant and do not change with the change in activity.
All the following costs are variable costs
Average Cost per Unit
Direct materials $6.45
Direct labor $3.30
Variable manufacturing overhead $1.25
Sales commissions $1.00
Variable administrative expense <u>$0.50</u>
Total variable cost per unit <u>$12.50</u>
All the following costs are fixed costs.
Fixed manufacturing overhead $3.00
Fixed selling expense $1.05
Fixed administrative expense $0.60
Answer:
b. a 15 percent decrease in the price.
Explanation:
Differential in quantity / differential in price
0.12 Demand /X Price = 0.8
X supply = 0.12 / 0.8
price = 0.15
Reduced cost = $62,750
increased depreciation = $14,812
tax rate = 34% = 34/100 = 0.34
operating cash flow of this project = ?
operating cash flow = (reduced project cost x (1-tax rate)) + (increased amount of depreciation x tax rate)
= ($62,750 x (1-0.34)) + ($14,812 x 0.34)
= $41,415 + $5036.08
= $46,451.08
so, operating cash flow for this project is $46,451 approx.