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2 years ago

The following data for a production department relate to two accounting periods:

Business

1 answer:

vagabundo [1.1K]2 years ago

5 0

Answer:

Fixed costs= $187,000

Explanation:

Giving the following information:

Activity(machine-hours): 17,000 18,500

Department costs: $246,500 $251,750

<u>To calculate the fixed and variable cost, we need to use the high-low method:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (251,750 - 246,500) / (18,500 - 17,000)

Variable cost per unit= $3.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 251,750 - (3.5*18,500)

Fixed costs= $187,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 246,500 - (3.5*17,000)

Fixed costs= $187,000

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1 year ago

John, an American executive, learns that a foreign subsidiary hired a 12-year-old orphan girl to work on the factory floor. He k

tino4ka555 [31]

Answer: An ethical dilemma

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An ethical dilemma is a situation where an individual is faced with making a decision between two options where if any option is chosen the individual might act against his/her moral principle. Like in the question, John is faced with the option of either complaining about child labor and then the child losses his/her source of income or allowing things to be as they already are.

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2 years ago

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Which of the following does not constitute an insurable interest?

Murrr4er [49]

Answer:you make an offer to buy your neighbor's house.

Explanation:

As seen from the aforementioned alternatives which all have insurable interest.Thus they are expantiated;

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2)Secondly,your lease makes you liable for fire damage to your rented premises makes for an insurable interest which is in form of mortagee/morgator contract,even if it isn't your property,it makes you liable for an insurable interest.

3)Thirdly,you have custody of a valuable painting when the owner is away also makes you eligible for an insurable interest.Though here as carrier,it still gives the right to an insurable interest courtesy of the fact that it is in your custody.

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3 years ago

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Scottech is examining an investment opportunity that will involve buying $100,000 worth of equipment. They will need $10,000 in

aleksandrvk [35]

Answer:

113,000.

Explanation:

Let go through all the items to see whether we need to include them in the initial outlay or not.

(1) $100,000 worth of equipment => Yes

(2) Shipping will cost $5,000 and installation will cost $8,000 => Yes (Add to purchase price of equipment)

(3) Paid a management consultant $4,000 to analyze this project => No =>This is sunk cost (already incurred regardless of accept or reject the prject)

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(5) $3,500 to train the employees to use the new equipment => No => under operating cashflow.

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2 years ago

Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7

aleksandr82 [10.1K]

Answer:

$2,000

Explanation:

The computation of the amount pay to the tax authorities during the year is shown below;

Let us assume the accrued payment be $6,000

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$3,000 + $6,000 - X = $7,000

$9,000 - X = $7,000

So, the X is

= $9,000 - $7,000

= $2,000

hence, the amount pay to the tax authorities is $2,000

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2 years ago