All categories

2 years ago

The following data relate to the Torrence Company for May and August:

Business

1 answer:

Zinaida [17]2 years ago

7 0

Answer:

Total cost= $1,193,000

Explanation:

Giving the following information:

May August

Maintenance hours 25,000 29,000

Maintenance cost $1,175,000 $1,247,000

First, we need to calculate the variable and fixed costs using the following formulas:

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

Variable cost per unit= (1,247,000 - 1,175,000) / (29,000 - 25,000)

Variable cost per unit= $18

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

Fixed costs= 1,247,000 - (18*29,000)

Fixed costs= $725,000

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

Fixed costs= 1,175,000 - (18*25,000)

Fixed costs= $725,000

Now, the total cost for 26,000 hours:

Total cost= 725,000 + 18*26,000

Total cost= $1,193,000

You might be interested in

Deon is VP of marketing with a major beverage company and is reviewing the contracts of several film, media, and television pers

yaroslaw [1]

Question Completion:

Options:

a. There must be at least two parties.

b. Each party is free to accept or reject the exchange offer.

c. Each party believes it is appropriate or desirable to deal with the other party.

d. Each party has something that might be of value to the other party.

Answer:

c. Each party believes it is appropriate or desirable to deal with the other party.

Explanation:

Criteria C is the criteria that will most directly relate to Deon's cancellation of the sponsorships. Business deals and relationships cannot be established or allowed to subsist when it becomes inappropriate or undesirable to deal with the other party because of controversial activities. This is more so when the activities involve political and social justice beliefs and differences. Ordinarily, business partners should not allow such personal prejudices to becloud their relationships. The best approach, therefore, is for business partners to keep their political and social justice beliefs personal and not make them public issues.

7 0

3 years ago

Common approaches to pricing are oriented around which four elements?

OLEGan [10]

Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.

Pricing refers to the process of determining the value that a producer will receive in the exchange of services and goods produced with final consumers or middle men.

The aim of generating profit is one of the element considered for price fixing.

Competition levels with other companies in the industry will influence price fixing because consumers pocket have to be considered.

Level of Cost incurred during production of the goods and services also play a great role in price fixing.

Demand from the market also influence price setting on a product.

Read more on this here

brainly.com/question/15398134

7 0

2 years ago

Match the accounting term with the corresponding definition.

svet-max [94.6K]

Answer:

a. An account whose normal balance is opposite of its companion account - 5. Contra-account

b. Entry made to assign revenues to the period in which they are earned and - 3. Adjusting entry expenses to the period in which they are incurred

c. A list of accounts with their adjusted balances - 2. Adjusted trial balance

d. The cumulative sum of all depreciation recorded for an asset - 1. Accumulated depreciation

e. The allocation of a long-term asset's cost to expense over its useful life - 6. Depreciation

f. The asset's cost less its accumulated depreciation - 4. Book value

g. Long-lived asset used to operate the business - 7. Long-term asset

Explanation:

An account whose normal balance is opposite of its companion account . These are Contra-accounts. Therefore a matches 5.

Entry made to assign revenues to the period in which they are earned and adjusting entry expenses to the period in which they are incurred. This is called matching concept. Therefore b matches 3.

A list of accounts with their adjusted balances is known as the Adjusted trial balance. Therefore c matches 2.

The cumulative sum of all depreciation recorded for an asset gives the Accumulated depreciation. Therefore d matches 1.

The allocation of a long-term asset's cost to expense over its useful life is the Depreciation of the asset. Therefore e matches 6.

The asset's cost less its accumulated depreciation gives the asset Net Book value. Therefore f matches 4.

Long-lived asset used to operate the business are called Long-term asset. These are usually used for more than a year. Therefore g matches 7.

5 0

3 years ago

Old navy stocks more bermuda shorts during the summer months than in the winter months. the resulting shift in supply explains:

Paha777 [63]

Because in the summer months its hotter and in the winter months people are looking for move covering warm and cosy clothing so the bermuda shorts would there for least likely to be bought during the summer months.

8 0

3 years ago

The cost of legal advice associated with the preparation of an individual's Federal income tax return that is paid in 2019 is no

Vinil7 [7]

Answer: False

Explanation:

4 0

3 years ago