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erik [133]
3 years ago
11

A company produces a single product. Variable production costs are $13.40 per unit and variable selling and administrative expen

ses are $4.40 per unit. Fixed manufacturing overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,300 units, the dollar value of the ending inventory under variable costing would be:_____.
a. $14,740.
b. $24,640.
c. $19,580.
d. $9,900.
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

Ending inventory= $19,580

Explanation:

<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>

We need to calculate the total unitary variable cost:

Total unitary variable cost= 13.4 + 4.4

Total unitary variable cost= $17.8

<u>Now, the cost of ending inventory:</u>

Ending inventory= 1,100*17.8

Ending inventory= $19,580

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Answer:

c) lost-horse forecasting.

Explanation:

According to my research on different types of forecasting methods, I can say that based on the information provided within the question the method being used in this situation is called lost-horse forecasting. This refers to using a value as a base, then analyzing all the factors and how they can affect the base value before making a final forecast. This is what the marketing manager is doing by using the known total in 2018 as a base and adjusting for different factors before making a sales forecast for 2021.

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8 0
3 years ago
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Answer:

16.99%

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Calculation for the crossover rate

We are going to to calculate the crossover rate using cash flow function on a financial calculator by following the step below:

CF0= 0

Step 1

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C01=$28,300-$36,900

C01= -$8,600

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4 0
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