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Olegator [25]
3 years ago
8

Comet Company accumulated the following account information for the year: Beginning raw materials inventory $ 5,600 Indirect mat

erials cost 1,600 Indirect labor cost 4,600 Maintenance of factory equipment 2,400 Direct labor cost 6,600 Using the above information, total factory overhead costs would be:
Business
1 answer:
Nesterboy [21]3 years ago
5 0
Overhead is any cost that cannot be traced back to the physical product (i.e. not direct materials and direct labor). Therefore, we cannot use the direct labor and beginning raw materials in the calculation. The total factory overhead costs are $8,600.
The calculation is as follows:
Indirect materials: $1,600
Add: Indirect labor costs $4,600
Maintenance of factory equipment: $2,400
Total factory overhead costs: $8,600

Source: Finance MBA student :)
You might be interested in
SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a cap
iogann1982 [59]

Answer:

SafeRide, Inc.

a. The financial implications of accepting the order are that total production cost will increase by $315,000 with a corresponding increase in sales revenue of $540,000, and an increase in net income by $225,000.

b. Under full capacity, the total production cost will increase by $1,485,000 for adding additional facilities while the sales revenue would increase by $540,000, resulting to a loss of $945,000.

c. Under full-capacity circumstances, there is a financing disadvantage of accepting the order because the order will entail additional capacity and facilities, resulting to a loss of $945,000.

Explanation:

Annual production capacity = 300,000 units

Current production capacity = 180,000 units

Special order from a German manufacturer = 60,000 units

Special order price per unit = $9.00

Budgeted Costs For      180,000 Units  240,000 Units  Difference 60,000

Manufacturing costs

Direct materials                 $450,000           $600,000       $150,000

Direct labor                           315,000             420,000          105,000

Factory overhead              1,215,000           1,260,000           45,000

Total                                  1,980,000          2,280,000       $300,000

Selling and administrative 765,000              780,000            15,000

Total                              $2,745,000        $3,060,000        $315,000

Costs per unit

Manufacturing                       $11.00                  $9.50

Selling and administrative       4.25                     3.25

Total                                     $15.25                  $12.75

Selling price to North American manufacturers = $20 per unit

Financial implications of accepting the order:

Manufacturing costs

Direct materials                  $150,000

Direct labor                           105,000

Factory overhead                  45,000

Total                                  $300,000

Selling and administrative    15,000

Total                                  $315,000

Total cost per unit = $5.25 ($315,000/60,000)

Total manufacturing cost per unit = $5 ($300,000/60,000)

Increase in net income from accepting the order = $225,000 ($9.00 - $5.25) * 60,000

Manufacturing costs

Direct materials                  $150,000 (variable)

Direct labor                           105,000 (variable)

Factory overhead              1,215,000

Total                                $1,470,000

Selling and administrative    15,000 (assumed to be variable)

Total                               $1,485,000

Unit cost per additional unit = $24.75

4 0
3 years ago
During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting l
alexandr1967 [171]

Answer:

The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Explanation:

Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.

5 0
2 years ago
A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bon
dalvyx [7]

Answer:

A. 6.50 years

Explanation:

Let C represent consumer loans,

T represent T-bonds and

t  represent T-bills

Portfolio duration = wC*dC + wT*dT + wt*dt

w = weight of...

d= duration of ....

Find the weights;

Total amount invested = 75 + 39 + 18 = 132 mill

wC = 75 / 132 = 0.5682

wT = 39 / 132 = 0.2955

wt = 18 /132 = 0.1364

Portfolio duration = (0.5682*3) +(0.2955*16) + (0.1364*0.5)

= 1.7046 + 4.728 + 0.0682

= 6.50 years

7 0
2 years ago
When modeling the flow of income and expenditures in an economy the two principal participants are households (consumers) and fi
horrorfan [7]

Answer:

It must be found that the income of a home flows in a very habitual way day by day because the expenses that are generated in the daily living are many.

Regardless of the number of family members that make up a household, the flow of income will always correspond to a good or benefit to satisfy a basic or secondary need.

Explanation:

Other income that can flow from a household are those that are made through bank transactions, for scholarship payments, credit cards, or other types of transactions that allow households to make a profit.

4 0
3 years ago
An economist resigns her $100,000/year university teaching position to work fulltime in her own consulting business. In the firs
lilavasa [31]

Answer:

ii. Her accounting profit was $150,000

iii. Her economic profit was $50,000

Explanation:

The computation is shown below:

For accounting profit, it is

= Total revenues - total expenses i.e explicit cost

= $250,000 - $100,000

= $150,000

And, for economic profit

= Total revenues - total cost i.e explicit and implicit cost

= $250,000 - $100,000 - $100,000

= $50,000

Hence, the second and third options are correct

7 0
3 years ago
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