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brilliants [131]
2 years ago
5

Wood Chuck Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cu

shion with the following costs per set of cushions (one seat and one back): Direct materials $ 1 Direct labor 10 Variable overhead 5 Fixed overhead 8 Total $ 24 Shepert Company has contacted Wood Chuck with an offer to sell it 5,000 sets of cushions for $18 each. If Wood Chuck buys the cushions, $2 of the fixed overhead per unit will be allocated to other products. Should Wood Chuck make or buy the cushions
Business
1 answer:
andre [41]2 years ago
8 0

Answer:

Yes buy the cushions

Explanation:

The computation is shown below:

= Manufacturing cost - purchase cost

where,

Manufacturing cost is

= Direct materials + direct labor + variable overhead cost + fixed overhead cost

= $1 + $10 + $5 + $6

= $22

The fixed overhead cost is

= $8 - $2

= $6

And, Purchase cost is  $18

Savings cost is

= $22 - $18

= $4 per set

And, the number of sets is 4,000 cushion sets

So, total amount saved is

= 5,000 cushion sets ×$4 per set

= $20,000

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Molodets [167]

Answer:

D. The worksheet

Explanation:

Accounting records are documents used to analyze and prepare financial statements. Accounting records are also documents which can be used to assess the performance of a company and also serves as source of records for audit purposes.

The followings are essential parts of accounting records; balance sheet, statement of cash flow, the ledgers , the journals, income statements etc.

7 0
2 years ago
Cash paid to retire notes $ 112​ Common shares acquired for treasury 172​ Proceeds from issuance of preferred stock 254​ Proceed
arsen [322]

Answer:

$176 million

Explanation:

The calculation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities

Proceeds from issuance of preferred stock $254 million

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Less: Cash dividends paid on preferred stock (86) million

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Net cash inflows from financing activities $176 million

The positive sign represents the cash inflow and the negative sign represents the cash outflow

6 0
3 years ago
6
TEA [102]

Answer: Four pies.

Explanation:

Marginal cost is the additional cost of producing one extra unit of a good or service.

From this graph we see the marginal cost rise when the first pie is produced and then it subsequently decreases as the second and third pie is produced which is where it reaches its lowest point.

From the fourth pie, the marginal cost begins to rise again which means the marginal cost begins to increase when the producer makes four pies.

3 0
3 years ago
McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a cust
Natalka [10]

Answer:

McGregor would Debit Service Fee Expense for $6.

Explanation:

Data provided in the question:

Fee charged by the credit card company = 3% of the sales

Amount of payment made by the customer to McGregor for the service = $200

Now,

The amount of fees charged on the transaction bu the credit card company

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= 0.03 × $200

= $6

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Hence,

McGregor would Debit Service Fee Expense for $6.

5 0
3 years ago
Hello today January 1 happy new year​
pishuonlain [190]

Answer:

Happy New Year

Explanation:

4 0
2 years ago
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