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Tasya [4]
3 years ago
11

Grand-cola spends $3 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it

produces. Fixed manufacturing overhead costs
$3million per year. The plant, which is currently operating at only 80 %

of capacity, produced 15 million units this year. Management plans to operate closer to full capacity next year, producing 25

million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead.

1.

What is the current total product cost (for the 15 million units), including fixed and variable costs?
2.

What is the current average product cost per unit?

3.

What is the current fixed cost per unit?

4.

What is the forecasted total product cost next year (for the25 million units), including fixed and variable costs?
5.

What is the forecasted average product cost next year?

6.

What is the forecasted fixed cost per unit?

7.

Why does the average product cost decrease as production increases?
Business
1 answer:
Setler79 [48]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Q=15 million

Q*=25 million

Unitary variable cost= $3

Fixed manufacturing overhead costs $3million per year

A) For Q:

Total cost= 3000000+15000000*3= $63000000

B) Average cost per unit=63000000/15000000=$4.2

C) Fixed cost per unit= 3000000/15000000= $0.2

D) Q*=25000000

Total cost= 30000000+25000000*3=$78000000

E) Fixed cost per unit= 3000000/25000000= $0.12

D) It decreases because the fixed costs are distributed by more units.

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Answer:

Larson did not have actual or constructive knowledge of the misstatements.

Explanation:

When a CPA conducts an audit of a firm's statements, they do not give a guarantee that all the firm's statements are accurate. Larson CPA is only giving an opinion that the books of its clients follows the generally accepted accounting practices.

They should however not knowing give opinion on statements that they know is untrue.

So the best defense for Larson Associates is that they did not have actual or constructive knowledge of the misstatements. Since they do not guarantee that all statements of the client is accurate.

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3 years ago
The fixed exchange rate system was used until 1971.<br><br> Question 3 options:<br> True<br> False
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Answer:

True

Explanation:

The fixed exchange rate came to an end in 1971 in the US.

Before 1971, the US currency value was tied to an ounce of gold. In 1971 the US economy was undergoing a recession. The US authorities bought all the gold value backing the dollar to end the recession.  The dollar became a fiat currency.

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3 years ago
Read 2 more answers
Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machi
romanna [79]

Answer:

beginning inmediately:  $ 140,095.127

after a year:                    $ 152,703.688

with a salvage value:     $ 148,227.912

Explanation:

We need to find the PMT of 980,000 dollars being ordinary annuity or annuity-due discounted at 9%

Annuity-due:

PV \div \frac{1-(1+r)^{-time} }{rate}(1+r) = C\\

PV  $980,000.00

time 10

rate 0.09

980000 \div \frac{1-(1+0.09)^{-10} }{0.09} (1.09)= C\\

C  $ 140,095.127

Annuity:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $980,000.00

time 10

rate 0.09

980000 \div \frac{1-(1+0.09)^{-10} }{0.09} = C\\

C  $ 152,703.688

If there is a salvage value, we discounted from the lease value:

980,000 - present value of salvage value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $68,000.0000

time   10.00

rate  0.09

\frac{68000}{(1 + 0.09)^{10} } = PV  

PV   28,723.93

980,000 - 28,724 = 951,276

<u>Now we calculate the PMT:</u>

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $951,276.00

time 10

rate 0.09

951276 \div \frac{1-(1+0.09)^{-10} }{0.09} = C\\

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8 0
3 years ago
An examination of Hyong Corporation's inventory accounts revealed the following information:
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Answer:

Production= 45,000 units

Explanation:

Giving the following information:

Raw materials, June 1: 46,000 units

Raw materials, June 30: 51,000 units

Purchases of raw materials during June: 185,000 units

<u>First, we need to calculate the raw material used in production:</u>

<u></u>

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 46,000 + 185,000 - 51,000

Direct material used= 180,000

<u>Now, the production for the period:</u>

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Answer:

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