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nydimaria [60]
2 years ago
6

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company

produced 42,000 units and sold 34,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit $ 54 Direct labor per unit $ 20 Variable overhead per unit $ 6 Fixed overhead for the year $ 462,000 Selling and administrative costs Variable selling and administrative cost per unit $ 9 Fixed selling and administrative cost per year $ 115,000 1a. Assume the company uses absorption costing. Determine its product cost per unit
Business
1 answer:
Monica [59]2 years ago
5 0

Answer:

$91

Explanation:

Given the following information,

Direct materials per unit = $54

Direct labor per unit = $20

Variable overhead per unit = $6

Fixed overhead for the year = $462,000

For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.

Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit

Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6

Unitary cost = $11 + $54 + $20 + $6

Unitary cost = $91

Therefore, the product cost per unit is $91

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Barry has just become eligible for his​ employer-sponsored retirement plan. Barry is 40 and plans to retire at 65. Barry calcula
snow_lady [41]

Answer:

$713,449.15

Explanation:

Barry’s total personal amount to invest = Initial amount + additional amount

                                                                 = $4,500 + 1,140

Barry’s total personal amount to invest = $5,640

Since Barry’s employer would match this amount, total amount to invest will be;

Total amount to invest for Barry = $5,640 + $5,640 = $11,280

The new amount Barry will have at retirement can be calculated using future value of an annuity formula stated as follows:

FV = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)

Where,

FV = Future value of the amount at the retirement

M = Total amount to contribute yearly by Barry and his employer = $11,280

r = Rate of return = 7% = 0.07

n = number of periods = 65 – 40 = 25 years

Substituting the values for into equation (1), we have:

FV = $11,280 × {[(1 + 0.07)^25 - 1] ÷ 0.07}

     = $11,280 × {[(1.07)^25 - 1] ÷ 0.07}

     = $11,280 × {[5.42743264012289 - 1] ÷ 0.07}

     = $11,280 × {4.42743264012289 ÷ 0.07}

     = $11,280 × 63.2490377160413

FV = $713,449.15

Therefore, Barry would have $713,449.15 at retirement if he could invest an additional $1,140 per year that his employer would match.

7 0
2 years ago
When direct labor employees contribute to the production process, the cost of their labor is recorded by debiting: O Wages Expen
lutik1710 [3]

Answer:

The correct answer is letter "C": Work in Process Inventory.

Explanation:

Work in Process Inventory is an asset in the company's Balance Sheet. It represents the accumulated cost of unfinished goods that are currently in the manufacturing process. Companies that manufacture large or customer-made items typically use a work in progress inventory system to record labor, raw material, and overhead.

6 0
3 years ago
True/False
Eddi Din [679]

Answer:

False

Explanation:

Have you ever heard the phrase "there are lies, [email protected] lies and statistics"?

The only way that a statistical study be 100% confident is that it involves everyone or everything. For example, if you want to carry on a study about how many US college students drive, in order to be 100% confident of the result, you would need to interview all the college students in the country.

7 0
3 years ago
BMW has developed two new print ads designed to appeal to women.One ad uses local scenes from around its South Carolina plant an
Elden [556K]

Answer:

The correct answer is letter "A": split-run testing.

Explanation:

A split-run test is useful for companies advertising their products through e-mails or print advertisements. The firm takes a sample of the target population and divides the test into two sections to measure the responsiveness of consumers to one and another promotion. The advertisement that ends up resulting in being more beneficial is sent to all the audience the institution has.

3 0
3 years ago
Assume that Luxland and Leanderland specialize and trade in a way that is advantageous for bothof them. Explain what will happen
katen-ka-za [31]

Question Completion:

Production outputs

                    Luxland    Leanderland

Chips                10                4

Pretzels            10                8

Total output    20               12

Answer:

Assuming that Luxland and Leanderland specialize and trade in a way that is advantageous for both of them, the number of pretzels that Leanderland can produce will be 16.

Explanation:

a) Data and Calculations:

Specialization Output:

                    Luxland    Leanderland

Chips                20                0

Pretzels              0                16

Total output     20                16

b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels).  When they specialize, Leanderland's output increases to 16 units from 12.  This results in total output of 36 units instead of 32 for both economies.

8 0
2 years ago
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