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Serggg [28]
3 years ago
12

Pluton makes particular plastics for sale to the public and the government. Basic cost data for a 100-pound drum of one particul

ar product called Xentra appears below: Qty Cost Chemical Xeta, gals 15 $25.00 Chemical Thenta, gals 35 $27.50 Base material, lbs 20 $1.00 100-lb lined drum 1 $51.83 Assuming normal production levels, what is the conversion cost (direct labor and overhead) per drum? Variable factory overheads are estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. The plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. Other workers are classified as indirect and are included in fixed overheads. The highly automated plant typically runs 21,000 machine hours per month. The preparation of one 100 lbs batch of Xentra needs ten minutes of direct labor and 75 minutes of machine time. Fixed manufacturing overheads total $3,500,000 per month. Forty percent of these fixed manufacturing overheads are labor-related costs and the balance are machine-related costs. A $191.67 B) $287.40 C) $311.67 D) $315.67 E) None of the above
Business
1 answer:
shepuryov [24]3 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Variable overhead per pound:

= variable overheads ÷ pounds of products to be produced

= 1,200,000 ÷ 1,000,000

= 1.2

Direct labor hours = 20 workers × 175 hours

                              = 3,500

Direct labor cost = Direct labor hours × 24

                            = 3,500 × 24

                            = 84,000

Machine hours = 21,000

Fixed overhead = $3,500,000 per month

Labor related (40%) = 1,400,000 ÷ 3,500 hours

                                 = 400

Machine related (60%) = 2,100,000 ÷ 21,000 hours

                                      = 100

Total cost of conversion:

= Direct labor cost + Variable overheads + Fixed overheads

= Direct labor cost + Variable overheads + (Labor related + Machine related)

= 10 min(24 ÷ 60 min) + (100 × 1.2) + [(400 ÷ 60)× 10 + (100 ÷ 60)× 75]

= 4 + 120 + 66.66666667 + 125

= 315.66666667

You might be interested in
--IMPORTANT--
lina2011 [118]

Answer:

See explanation

Explanation:

Some of the advantages and conveniences of buying internationally are as follows:

1. Revenues are expanding;

2. Competition among firms will be decreasing;

3. Diversifying the risk management;

4. Getting the chance to specialize (1);

The difference between buying a shirt made in Canada, but find the same one made in China is the availability of raw materials. The same raw materials can be found in various countries with the help of international trade. Transportation makes the difference either. The final difference is where you are staying. If you stay in Canada, you might get the Canadian shirt cheaper than the Chinese one. Again, if you stay in China, you might find the cheaper price in China. If you do not stay in both of the countries, it will be difficult to assume.

References:

1. Martinuzzi, B. (2018). What Are the Advantages of International Trade? Retrieved from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/advantages-international-trade/

2. Herrera, S. (2018). International e-commerce: Advantages and disadvantages of marketplaces. Retrieved from https://www.handelskraft.com/2018/09/international-e-commerce-advantages-and-disadvantages-of-marketplaces-5-reading-tips/

5 0
4 years ago
A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent
bonufazy [111]

Answer:

Portfolio return = 11.08%

Explanation:

<em>The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.</em>

The expected return can be determined as follows

Weighted of stock A= 15,200/(15200+23400)=0.39

Weight of stock B = 23.400/((15200+23400)=   0.61  

Expected return on portfolio = (0.39 ×8.90% )  + (0.61*12.50%)= 11.08 %

8 0
4 years ago
If a defendant makes an untrue statement of fact about the plaintiff and the statement was intentionally or accidentally publish
bulgar [2K]

If a defendant makes an untrue statement of fact about the plaintiff and the statement was intentionally or accidentally published to a third party, the defendant is held liable for misappropriation of the right to publicity-<u>The STATEMENT HOLDS FALSE</u>

Explanation:

<u>The right of publicity is violated when the unauthorized commercial use of a plaintiff's identity occurs.</u>

<u> A commercial use occurs when the defendant offers the plaintiff's identity to promote the sale of products, services, or fundraising.</u>

The statement stated in the question stands false because

  • The defendant has not made any unauthorized use of the Plaintiff identity.
  • No promotion of sale of any product ore services or any fundraising activity is mentioned in the question

He<u>nce ,the Statement hold's False</u>

5 0
4 years ago
"Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Austria. Both subsidiaries frequently
OverLord2011 [107]

Answer:

$525,000

Explanation:

The computation of the net inflow or outflow is shown below:

= Total outflow - total inflow

where,

Total outflow = ∈2,000,000 × $1.05 = $2,100,000

Total inflow =  ∈1,500,000 × $1.05 = $1,575,000

Now put these values to the above formula  

So, the value would equal to

= $2,100,000 - $1,575,000

= $525,000

This amount shows a net outflow as total outflow is greater than the total inflow.

3 0
4 years ago
If the marginal propensity to consume is 0.30 , what is the multiplier, assuming there are no taxes or imports
ollegr [7]

Answer:

Multiplier or k = 1.428571429 rounded off to 1.43

Explanation:

A change in consumer income leading to an increased consumer spending based on the Marginal propensity to consume or MPC can have a much larger effect in the economy due to the multiplier. A multiplier is the is the amount of new income that is generated form an addition of extra income.

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. The formula to calculate the multiplier, also denoted as k, is:

k = 1 / (1 - MPC)

k = 1 / (1 - 0.3)

k = 1.428571429 rounded off to 1.43

3 0
4 years ago
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