What is discretionary spending within a budget?

Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system u

vampirchik [111]

Answer:

Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

Explanation:

A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.

Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

8 0

2 years ago

Marlow Company purchased a point of sale system on January 1 for $5,800. This system has a useful life of 5 years and a salvage

xz_007 [3.2K]

Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

The depreciation rate under double declining is = 0.2 × 2 = 0.4

Depreciation expense for the first year = 0.4 × $5800 = $2320.

At the beginning of year two, net book value = $5800 - $2320 = $3480

Depreciation expense for year two = 0.4 × $3480 = $1392

7 0

3 years ago

January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use

tankabanditka [31]

Answer:

Interest capitalized for 2017 = $86,805

Explanation:

As per the data given in the question,

Average expenditure for 2016 = ($200,000×12÷12) +($300,000×4÷12)+($300,000×0÷12)

=$300,000

Interest capitalized for 2016 =($200,000×12÷12)+($300,000×4÷12)+($300,000×0÷12)×12%

= $36,000

Average expenditure for 2017 :

Accumulated expenditure in 2016 = ($200,000+$300,000+$300,000 +$36,000)×9÷9

= $836,000

For March-31,2017 = $300,000×6÷9

= $200,000

For Sept-30,2017 = $200,000×0÷9 = $0

Average expenditure for 2017 = $836,000 + $200,000 + $0

= $1,036,000

Interest capitalized for 2017 :

Specific borrowing = $750,000×9÷12×12%

= $67,500

Excessive amount = ($1,036,000 - $750,000)×9÷12×9%

= $19,305

Interest capitalized for 2017 = $67,500 + $19,305

= $86,805

4 0

3 years ago

Johnston Company has budgeted production of 11,600 units and sales of 14,400 units in February. Each unit requires 15 minutes of

kap26 [50]

Answer:

$43,500

Explanation:

Direct labor costs refer to the salaries that are paid to the employees that perform a job that is related to the production of a good. In this case, it would be the wages of the employees that work in the production of the units budgeted.

To calculate the total cost, first you have to calculate the amount of hours require to produce 11,600 units:

1 unit → 15 minutes

11,600 units → x

x=(11,600*15)/1= 174,000 minutes

1 hour → 60 minutes

x ← 174,000 minutes

x=(1*174,000)/60= 2,900 hours

Now, you can calculate the total budgeted direct labor costs by multiplying the labor rate per hour for the number of hours needed to manufacture the units budgeted:

$15*2,900= $43,500

According to this, the answer is that the total budgeted direct labor costs for February is $43,500.

5 0

3 years ago

If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Jlenok [28]

Answer:

The correct answer would be option C, The price needs to increase.

Explanation:

In order to maintain a balance or equilibrium, there should always be a balance between the quantity demanded and the quantity supplied. If quantity demanded exceeds quantity supplied, it means people are demanding the product more and the supply of that product is not meeting the demand. In this scenario when there is more demand of a product than supply, the price of the product should increase in order to create a balance between the quantity demanded and supplied, because it is the law of demand that when demand increases, the prices of the product also increases and vice versa. So to maintain the equilibrium, the price of the product should increase. In this way demand will decrease and will reach a point where demand will meet the supply of the product.

5 0

3 years ago