Answer:
Production cost per unit $80.59
Explanation:
The computation of the production cost per unit using absorption costing is shown below:
Direct labor per unit $28
Direct material per unit $29
Variable overhead per unit $20 ($760,000 ÷ 38,000 units)
Fixed overhead per unit $3.59 ($136,420 ÷ 38,000 units)
Production cost per unit $80.59
We simply added all the cost per unit so that the production cost per unit could come
Answer:
The Bullwhip Effect
Explanation:
Bullwhip effect is a phenomenon that occurs in an organisation's channel of distribution due to swings or erratic demands for products by customers. This erratic nature of demands will usually lead to forecasting inefficiencies especially in meeting the demands through the supply chain.
A sudden increase in demand could lead to production planning problems because there might not be enough inventory of materials on ground to meet the demand. Also, a sudden decrease in demand can bring the challenge of excess inventory of materials which may not be needed for production for a while.
One of the measures taken to manage this erratic nature of demands is to ensure that whatever the forecasts for demands is, safety stock must be included to the forecast level of demand so as to ensure that production planning is adequate and the demands are met as well.
Answer & Explanation:
If there is no other place for it. The case must be put back together and returned to the back room to be stored. There are times where it is acceptable to return a partial case to the back. An example is if a customer asks for an item out of the box.
Answer:
The depreciation expense for the company is $4615.
Explanation:
profit before depreciation and tax = (sales - cost) - interest expense
= ($51,200 - $39,600) - $1,560
= $10040
Addition to retained earnings = $2,320
dividends paid = $935
tax rate = 40 percent.
Addition to retained earnings = [(Profit before depreciation and tax - depreciation expense ) * (1- Tax)] - dividend paid
$2320 = [($10040 - depreciation expense)* (1 - 0.40)] - 935
$3255 = ($10040 - depreciation expense)* 0.60
$5425 = $10040 - depreciation expense
Depreciation expense = 10040 - 5425
= $4615
Therefore, The depreciation expense for the company is $4615.
Answer:
It is Risk Assessment
Explanation:
Risk Assessment is process of identifying and analyzing potential events that may negatively impact on the business either as individual or in aggregate and prevent the company from achieving its objectives.
Each business has its own inherent risks and a conscious efforts must be made to identify and analyse them using impact assessment. Necessary measures must be put in place to prevent or reduce their impacts.
