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4 years ago

Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.

Business

1 answer:

azamat4 years ago

7 0

Answer:

Predetermined overhead rate = $ 9.75 per direct labor hours

Overhead applied = $897,000

Explanation:

Given:

Budgeted Overhead cost = $975,000

Actual Overhead cost = $950,000

Budgeted Machine hours = 50,000

Actual Machine hours = 45,000

Budgeted Direct labor hours = 100,000

Actual Direct labor hours = 92,000

Computation:

(a) Predetermined overhead rate.

Predetermined overhead rate = budgeted overhead cost / budgeted direct labor hours

Predetermined overhead rate = $975,000 / 100,000

Predetermined overhead rate = $ 9.75 per direct labor hours

(b) Amount of overhead applied for the year.

Overhead applied = Actual hours × Predetermined overhead rate

Overhead applied = 92000 × $9.75

Overhead applied = $897,000

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consumer to share liability with a company.

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3 years ago

Read 2 more answers

Information concerning a product produced by Ender Company appears here: Sales price per unit $ 164 Variable cost per unit $ 94

Alex17521 [72]

Answer:

Results are below.

Explanation:

To calculate the unitary contribution margin, we need to use the following formula:

Contribution margin= selling price - unitary variable cost

Contribution margin= 164 - 94

Contribution margin= $70

Now, to determine the break-even point in units and sales dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 434,000 / 70

Break-even point in units= 6,200

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 434,000 / (70 / 164)

Break-even point (dollars)= $1,016,800

The desired profit is $182,000:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (434,000 + 182,000) / 70

Break-even point in units= 8,800

Finally, the margin of safety in units, sales dollars, and as a percentage:

Margin of safety (units)= (current sales level - break-even point)

Margin of safety (units)= 8,800 - 6,200

Margin of safety (units)= 2,600

Margin of safety (dollars)= (8,800*164) - 1,016,800

Margin of safety (dollars)= $426,400

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 426,400 / 1,443,200

Margin of safety ratio= 0.295

7 0

4 years ago

Suppose you invested $58 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid a dividend of $0.65 today and then you s

Dmitry [639]

Answer:

18.36%

Explanation:

Calculation for the return on the investment?

Using this formula

Return on investment = Net profit/Cost of Investment

The first step is to find the net profit using this formula

Net profit =( Sales amount +Dividend)-Dividend Stock Fund Investment

Let plug in the formula

Net profit = ($68 + $0.65) - $58 =

Net profit= $68.65-$58

Net profit= $10.65

Now let calculate the return on investment

Using this formula

Return on investment = Net profit/Cost of Investment

Let plug in the formula

Return on investment=$10.65/58

Return on investment= 18.36%

Therefore the return on the investment will be 18.36%

8 0

3 years ago

Hamburger Co has determined that their lowest total cost production technology is $460. If machines cost $100 and workers cost $

Reil [10]

Answer:

4 workers

Explanation:

The cost that Hamburger Co can incur at this time is $460.

When producing the total cost is equal to fixed cost less variable cost.

Fixed cost includes nonmoveable assets that assist in production, such as machinery. The cost is fixed.

Variable costs are those costs that change in the course of production and can be varied depending on need.

Total cost = Fixed cost + variable cost

460= (3*100)+ variable cost

Variable cost= 460- 300= $160

Number of worker= Variable cost/ cost of each worker

Number of worker= 160/40= 4 workers

8 0

3 years ago

Josiah was managing a factory in India, and had a decision to make. The factory used child labor, which he disapproved of, but h

Marina CMI [18]

Answer: ethical dilemma

Explanation: In simple words, ethical dilemma refers to a condition in which an individual in authority have to make a choice of accepting one alternative over other in which none of the alternative is fully acceptable from the point of ethics.

In other words, it can be defined as a situation in which two principles of ethical psychology conflicts with each other. In these conditions, authority making the decision can never be fully ethical and have to give priority to one of the principles involved.

Hence from the above we can conclude that the given case depicts ethical dilemma.

5 0

4 years ago