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Vsevolod [243]
3 years ago
9

A particular operation may be performed by two kinds of process. Process A requires a setup time of 40 minutes, whereas Process

B requires a setup time of 180 minutes. On the other hand, the per unit run times are: 0.015 minutes on A and 0.0023 minutes on B. Which batch sizes would you route to A and which ones to B?
Business
1 answer:
Over [174]3 years ago
4 0

Answer:

If batch size is more than 11,024 we will prefer  B process otherwise we will prefer Process A.

Explanation:

Given,

Setup time of Process A = 40 minutes.

Setup time of Process B= 180 minutes.

The production time for the x batch size in the process A is given by Ta(x)=40+0.015×x

The production time for the x batch size in the process B is given by

Tb(x)=180+0.0023×x

Equating the both equations to the find the balancing point Ta(x) =Tb(x)

                                 40+0.015×x = 180+0.0023×x

Rearranging the terms in the equations and bringing the similar terms on same side of the equation.

                                x×(0.015-0.0023) = 180-40

                                         ⇒0.0127×x  = 140

                                                         x   = 11,023.6

Round off x we get x= 11,024

Therefore if batch size is more than 11,024 we will prefer  B process otherwise we will prefer Process A.

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Basse Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockh
Lana71 [14]

Answer:

November 1, declaration of cash dividends

  • Dr Retained Earnings account 7,000
  • Cr Dividends Payable account 7,000

December 31, distribution of cash dividends

  • Dr Dividends Payable account 7,000
  • Cr Cash account 7,000

Explanation:

The cash dividends will decrease the retained earnings account, since retained earnings is an equity account, when it decreases it has to be debited.

Dividends payable account is a liability account created when the company declared the dividends and it is cancelled when the company pays the dividends.

5 0
3 years ago
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
m_a_m_a [10]

Answer:

Deoro Company

Unit cost for each model

                                                       Model A      Model B

1. Using direct labor hours            $176.72     $232.815

2. Using the four activity drivers  $136.45     $298.20

3. ABC (method 2) produces the more accurate cost assignment.  The overhead cost depends on the level of activity consumed by each model.

Explanation:

a) Data and Calculations:

Activity                         Expected Cost   Activity Driver       Activity Capacity

Setting up equipment     $492,880      Number of setups              610

Ordering costs                   372,000      Number of orders         18,600

Machine costs                   963,600      Machine hours             43,800

Receiving                           501,600       Receiving hours            11,400

Total overhead costs  $2,330,080

Activity rates:

Setting up equipment   = $808 ($492,880/610) per setup

Ordering costs               = $20 ($372,000/18,600) per order

Machine costs                = $22 ($963,600/43,800) per machine hour

Receiving                        = $44 ($501,600/11,400) per receiving hour

Total direct labor hours = 8,000

Total overhead costs = $2,330,080

Predetermined overhead rate using direct labor hours:

= $291.26 ($2,330,080/8,000)

Unit cost for each model:

Using direct labor hours to apply overhead:

                                Model A      Model B

Direct materials    $600,000    $800,000

Direct labor           $480,000    $480,000

Overhead            $1,747,560    $582,520

Total costs         $2,827,560   $1,862,520

Unit costs                  $176.72     $232.815

Units completed        16,000           8,000

Direct labor hours      6,000           2,000

Number of setups         400              200

Number of orders      6,000         12,000

Machine hours         24,000         18,000

Receiving hours         3,000           7,000

Overhead assigned to:

Using predetermined rate based on direct labor hours:

                                                Model A      Model B

Overhead rate = $291.26 per direct labor hours

Direct labor hours                      6,000           2,000

Using direct labor hours   $1,747,560    $582,520

Using activity-based costing method:

                                       Rates      Model A                           Model B

Setting up equipment = $808  $323,200 ($808*400)      $161,600 ($808 * 200)

Ordering costs             = $20      120,000 ($20 *6,000)     240,000 ($20 * 12,000)

Machine costs              = $22     528,000 ($22 *24,000)  396,000 ($22 * 18,000)

Receiving                      = $44      132,000 ($44 * 3,000)    308,000 ($44 * 7,000)

Total overhead assigned        $1,103,200                       $1,105,600

Using activity-based rates to apply overhead:

                                Model A          Model B

Direct materials    $600,000        $800,000

Direct labor           $480,000        $480,000

Overhead            $1,103,200      $1,105,600

Total costs          $2,183,200    $2,385,600

Units completed        16,000              8,000

Unit costs                $136.45          $298.20

4 0
3 years ago
If a drought struck a country what would happen to the production possibilities
Aneli [31]
<span>The production possibility curve would shift leftward and the axes would decrease. This would be a decrease in the overall production ability of the nation or area. Lowered ability to produce would give a lowered maximum amount possible to produce, which would thereby need smaller axis values.</span>
5 0
3 years ago
Which of the following is a disadvantage of partnerships compared to sole proprietorships?
GarryVolchara [31]
C. It is sometimes difficult for partners to agree on every business decision.
6 0
3 years ago
On October 12, 2006, Lowell Corporation invested $600,000 in short-term available-for-sale marketable securities. The market val
gavmur [86]

Answer:

option D

Explanation:

In financial statements In balance sheet short term investment available for sale of securities should be reported on fair value of investment and unrealized gain or loss should be included in stockholder's equity.

so in this question 660,000 should be reported as asset investment in marketable securities and (660000-600000) = 60000 unrealized gain should be reported in stockholder's equity.

The asset Investments in Marketable Securities at $660,000, and a $60,000 Unrealized Holding Gain included in total stockholders' equity

6 0
3 years ago
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