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Daniel [21]
3 years ago
13

Stuchlik Catering uses two measures of activity, jobs and meals, in the cost formulas in its budget and performance reports. The

cost formula for catering supplies is $430 per month plus $80 per job plus $14 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in January to be 20 jobs and 190 meals, but the actual activity was 21 jobs and 194 meals. The actual cost for catering supplies in January was $4,850. The catering supplies in the planning budget for January would be closest to:
a. $4,850
b. $4,690
c. $4,826
d. $4,619
Business
1 answer:
Gnom [1K]3 years ago
6 0

Answer:

Total cost= $4,690

Explanation:

Giving the following information:

Fixed costs= $430

Cost per job= $80

Cost per meal= $14

The company expected its activity in January to be 20 jobs and 190 meals.

<u>The cost that would appear in the planned budget is calculated using the estimated activity</u><u>.</u>

Total cost= 430 + 80*20 + 14*190

Total cost= $4,690

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Koshys coffe in bagalore is quaint establishment nesteld near mg road in the central business distirct it serves coffee and frui
Ksivusya [100]

Answer:

812.41

Explanation:

Demand D = 6600 cases

Ordering cost S = 5

Holding cost H= $40

Economic order quantity = EOQ

Q = \sqrt{2DS/H}

Q = \sqrt{(2*6600*5)/40}

Q = \sqrt{1650}

Q = 40.620192

Q = 40.62 cases

Annual ordering cost = D * S / EDQ

Annual ordering cost = 6600 * 5 / 40.62

Annual ordering cost = 33000 / 40.62

Annual ordering cost = 812.4076809453471

Annual ordering cost = $812.41

So, their annual ordering cost if they order at their EOQ level is 812.41

7 0
3 years ago
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of
pantera1 [17]

Answer:

a:<u>Total Variable Costs        $26 </u>    

a:<u>Total Manufacturing Costs = $ 30</u>  

b:<u>Net Income </u><u><em>Variable Costing</em></u><u>  $100,000</u>  

b: <u>Net Income  </u><u><em>Absorption Costing</em></u><u>  $ 100,000</u>

Explanation:

Smuckers Manufacturers

<u>Costs per case under  Variable Costing</u>

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

<u>Total Variable Costs        $26 </u>        

<u>Costs per case under  Absorption Costing</u>

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Total fixed manufacturing overhead                           $120,000

Total Manufacturing Costs                                         $ 900,000

<u>Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30</u>

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

<u><em> SMUCKERS </em></u>

<u><em>Variable Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

<u><em></em></u>

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Contribution Margin                                                        240,000

Fixed Expenses                                                               140,000

Total fixed manufacturing overhead      $120,000

Fixed selling and administrative 20,000

<u>Net Income                                                                   100,000</u>

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

<u><em>SMUCKERS </em></u>

<u><em>Absorption Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total fixed manufacturing overhead      $120,000

Total Manufacturing Costs                                              900,000

Gross Profit                                                                   120,000

Fixed Expenses                                                               20,000

Fixed selling and administrative 20,000

<u>Net Income                                                                   100,000</u>

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4 years ago
An investor considers investing $20,000 in the stock market. He believes that the probability is 0.29 that the economy will impr
Dmitrij [34]

Answer: See explanation

Explanation:

a. What is the expected value of his investment?

Based on the information given, this will be:

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b. What should the investor do if he is risk neutral?

If the investor is risk neutral, then he should invest $20000.

c. Is the decision clear-cut if he is risk averse?

If the investor is risk averse, then it should be noted that he should not invest $20000 since the expected value of the investment will be lesser than its investment. In this case, the decision isn't clear cut if he's risk averse.

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An excessive-danger supplier is a 3rd-celebration vendor that has to get the right of entry to a agency's sensitive corporate information and/or handles its financial transactions and has a high risk of information loss. A high-threat seller is also a supplier that an organisation relies upon directly to run its operations.

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