The present value of a dollar would be calculated as -
1 dollar X Present value factor of $ 1 @ 5 % for three years.
Present value factor of $ 1 @ 5 % for three years = 0.8638
Present value of $ 1 after 3 years = $ 1 X 0.8638 = $ 0.8638
Answer: Financial disadvantage of -$29,800
Explanation:
If extra large part is produced inhouse;
= Direct materials + direct labor + Variable manufacturing overhead + Supervisor's salary + opportunity cost of making other products
= ((4.7 + 9.3 + 9.8 + 5.2) * 22,000) + 34,000
= $672,000
Cost if bought outside;
= 31.90 * 22,000
= $701,800
Financial advantage ( disadvantage) = 672,000 - 701,800
= -$29,800
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
Answer:
$132.1 per unit
Explanation:
For determining the average cost of product Q79Y first we have to solve the activity rate for each activity i.e shown below;
For assembly
= $813,600 ÷ 48,000 machine hours
= $16.95 per machine hour
For processing order
= $65,195 ÷ 1,700 orders
= $38.35 per order
For inspection
= $110,592 ÷ 1,440 inspection hours
= $76.8 per inspection hours
Now the total activity rate is
= $76.8 + $38.35 + $16.95
= $132.1 per unit
Now the average cost of product is
= Direct materials + direct labor + assembly + processing orders + inspection
= $43 + $41.33 + $35.132 + $5.438 + $3.7701
= $132.1 per unit
Working notes
For Assembly
= ($16.95 × 1,140 ) ÷ 550
= $19,323 ÷ 550
= $35.132
For Processing orders
= ($38.35 × 78) ÷ 550
= $5.438
For Inspection
= ($76.8 × 27) ÷ 550
= 3.7701
John is performing the mid management level of management.
