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3 years ago

Asteroid Industries accumulated the following cost information for the year:

Business

1 answer:

chubhunter [2.5K]3 years ago

5 0

Answer:

Factory overhead= $22,900

Explanation:

Giving the following information:

Direct materials $15,200

Indirect materials 3,200

Indirect labor 7,700

Factory depreciation 12,000

Direct labor 36,200

Factory overhead is all the indirect costs related to production. In this case:

Factory overhead= indirect materials + indirect labor + factory depreciation

Factory overhead= 3,200 + 7,700 + 12,000

Factory overhead= $22,900

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Heather Company is considering the acquisition of a machine that costs $360,000. The machine is expected to have a useful life o

Angelina_Jolie [31]

Answer:

3 years

Explanation:

The cash payback period measures how long it takes for the amount invested in a project to be recouped from cumulative cash flows.

Explanations on how the payback period is calculated can be found in the attached image.

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6 0

3 years ago

The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two opt

siniylev [52]

Answer:

Differential income = $8,100

Explanation:

The differential income is the difference in income between the two alternative uses of the unused space. This would be done as follows:

Option 1

Income from the pop corn option:

Sales value 715,000

Less commission (6%×715,000) (42,900)

Net sales value 672,100

Option 2 :

Lease income from Salty Snacks

Lease income 188,800

Taxes 47,000

Insurance 9,000

Annual Net lease income 132,800

Total lease income for 5 years 132800× 5= $664,000

Differential income 672,100-664,000 = 8,100

Differential income = $8,100

7 0

3 years ago

In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ra

Aleks04 [339]

Answer:

A. $74,000

Explanation:

Since in this question, Tiffany is retired so we have to find the new ratio which is shown below:

As Tiffany take the shares of both the partners in 3: 2

So, the new ratio would be

Ron share = (3 ÷ 5) × (1 ÷ 6) = 3 ÷ 30

Stella share = (2 ÷ 5) × (1 ÷ 6) = 2 ÷ 30

So the ratio would be 3: 2

The 1 ÷ 6 is the Tiffany ratio

Now the balance after Tiffany withdraws from the partnership equals to

= Paid amount by Tiffany - Tiffany capital

= $60,000 - $50,000

= $10,000

Ron's given amount = ($10,000 × 3 ÷ 5) = $6,000

So, Ron's capital balance equals to

= Ron's capital - Ron's given amount

= $80,000 - $6,000

= $74,000

6 0

3 years ago

If economic activity increases, it follows that economic welfare:

grigory [225]

Probably goes either way

7 0

3 years ago

QUESTION 32 Eccles Inccorporated Eccles Incorporated, a zero growth firm, has an expected EBIT of $100,000 and a corporate tax r

cricket20 [7]

Answer:

The cost of equity is 32%

Explanation:

The formula for calculating firm's cost of equity according Miller and Modgiliani is given as:

r levered=r unlevered+(debt/equity*(r unlevered -cost of debt)*(1-tax)

r unlevered is the cost of an unlevered equity=16%

debt=$500000

cost of debt=12%

equity=unknown

Hence we need to first of all calculate the total value of the firm and the formula is

EBIT(1-tax)/unlevered cost of equity+(debt*tax)

$100000(1-0.25)/16%+($500000*25%)=$593750

r levered=16%+($500000/($593750-$500000)*(16%-12%)*(1-0.25)

r levered=0.32 that is 32%

7 0

4 years ago