it is intrapersonal, and i know that for a fact.
Answer and Explanation:
The computation is shown below
a. The economic order quantity is
= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)
= sqrt ((2 × 1,215 × $10) ÷ $75)
= 18 units
b) Average number of bags on hand is
= EOQ ÷ 2
= 18 ÷ 2
= 9
c) Orders per year is
= D ÷ EOQ
= 1215 ÷ 18
= 67.5
= 68
d) Total cost = Total carrying cost+ Total ordering cost
= (Q ÷ 2)H +(D ÷ Q)S
= (18 ÷ 2)75 + (1215 ÷ 18) × 10
= 675 + 675
= $1350
Answer:
The depreciation expense is $5638.46 and the Addition to retained earnings is 4865
Explanation:
Solution
Given that:
Sales = $95805
Less: Costs = $75885
Less depreciation expense ($95805 - $75,885 - 14281.54) = $5638.46
EBIT (12161.54 + 2120) = 14281.54
Less: Interest expense =2120
EBT (100%)(7905/0.65) = 12161.54
Less: tax at 35%(12161.54*35%) =4256.54
The Net income(65%) = 7905
The Less:dividends = 3040
Addition to retained earnings =4865
Answer:
D
Explanation:
Nantell's operating income (EBIT) will increase., because now the company will record lower depreciation expense in the income statement due to increase in the life from 5 to 7 taken for the depreciation purposes. So decline in depreciation will result in higher EBIT.
a. is wrong as lower depreciation means higher net income.
b. is wrong as tax liability will not get impacted as tax will follows old method of depreciation.
c. is incorrect as depreciation is non cash expense thus does not impact cash position and tax has already be on the earlier method.
e. is incorrect as increase in EBIT will result in higher taxable income.
hence option D is the only correct option
Answer:
The question is missing information, however the way to approach the required is presented below in the explanation
Explanation:
When calculating variances it's always important to flex the budgeted information to standard form so we're comparing apples with apples. If we use the actual budgeted figures we can distort the variances and comparisons of information may be useless. For instance if we produce 40 units but budgeted was 50 units we need to work out what was the budgeted cost for 40 units and compare that to the actual cost of 40 units. That is what is meant by flexing to the standard form.
A) The fixed overhead spending variance is the difference between the budgeted and actual fixed overhead expense. This is calculated as follows
Actual fixed overhead - Budgeted fixed overhead = Fixed overhead spending variance $
B) The fixed overhead volume variance is calculated as follows;
Budgeted fixed overhead rate – Fixed overhead rate applied to the units (quantity of production)
C) Variable overhead spending variance is calculated as follows;
The variable overhead spending variance is the difference between the actual and budgeted rates of expenditure of the variable overhead.
Actual hours worked x (actual overhead rate - standard overhead rate)
= Variable overhead spending variance
D) Variable overhead efficiency variance is calculated as follows;
The variable overhead efficiency variance is the difference between the actual and budgeted hours worked. The standard variable rate per hour is used for this and must be calculated.
Standard overhead rate x (Actual hours - Standard hours)
