1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nataly862011 [7]
3 years ago
6

Cupid Co. manufactures dog toys. One of its most popular products, Bacon Ben, has the following costs to produce 1,000 units: $9

,600 direct materials, $1,920 advertising costs, $960 plant manager salary, and $640 salaries for factory maintenance. If the cost to produce one Bacon Ben is $14.72, how much is Cupid’s direct labor for this product?
Explain please.
Business
1 answer:
Gennadij [26K]3 years ago
8 0

Answer:

3,520= direct labor

Explanation:

Giving the following information:

Bacon Ben, has the following costs to produce 1,000 units:

$9,600 direct materials

$1,920 in advertising costs

$960 plant manager salary

$640 salaries for factory maintenance

To calculate the direct labor cost we need to use the following formula:

Total manufactured cost= direct materials + direct labor + allocated manufacturing overhead

Total manufactured cost= 1,000*14.72= $14,720

Direct material=9,600

Overhead= plant manager salary + salaries for factory maintenance

Overhead= 960 + 640= 1,600

14,720= 9,600 + direct labor + 1,600

3,520= direct labor

You might be interested in
Shockglass Company had a beginning inventory of $15,000. During the year, the company recorded inventory purchases of $45,000 an
Otrada [13]

Answer:

A. $10,000

Explanation:

We know that :

cost of goods sold = opening inventory + purchases - ending inventory

hence,

Ending Inventory = opening inventory + purchases - cost of goods sold

therefore,

Ending Inventory = $15,000 +  $45,000 - $50,000

                              = $10,000

The ending inventory must equal: $10,000

8 0
2 years ago
Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division’s retu
almond37 [142]

Answer:

a. Project's net present value is $1,015,163.09

b. Simple rate of return is 15%

c. Yes. The reason is that the project has a positive net present value of $1,015,163.09.

d. No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.

Explanation:

a. Compute the project's net present value.

To compute this, we first calculate the annual cash inflow as follows:

Annual cash inflow = Net operating income + Depreciation = $452,000 +  $828,000 = $1,,280,000

Now, the project's net present value can be calculated using the formula for calculating the present of an ordinary annuity as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of the annual cash flow = ?

P = Annual cash inflow = $1,280,000

r = Discount rate = 17%, or 0.17

n = Equipment useful years = 5

Substitute the values into equation (1) to have:

PV = $1,280,000 * [{1 - [1 / (1 + 0.17)]^5} / 0.17]

PV = $4,095,163.09

Project's net present value = PV - Project's initial investment = $4,095,163.09 - $3,080,000 = $1,015,163.09

b. Compute the project's simple rate of return

This can be computed as follows:

Simple rate of return = Net operating income / Initial investment =  $452,000 / $3,080,000 = 0.15, or 15%

c. Would the company want Derrick to pursue this investment opportunity?

Yes. The reason is that the project has a positive net present value of $1,015,163.09.

Note that had it been the net present value of the project was negative, the company would not want to Derrick to pursue this investment opportunity since the decision of the company is based on whether the project's NPV is positive or negative.

d. Would Derrick be inclined to pursue this investment opportunity?

No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.

Pursuing this investment opportunity will therefore reduce the Overall ROI of the division and Derrick will not get annual pay raises if this happens.

8 0
3 years ago
Companies use mail merge to send out advertisements to possible customers.<br><br> True<br> False
algol13
The         answer          is             true                           ψψψψψψψψψψψψψψψψ    
5 0
3 years ago
Read 2 more answers
anufacturers consider selling and administrative costs to be A. prime costs. B. conversion costs. C. inventoriable costs. D. per
malfutka [58]

Answer:

D. period costs.

Explanation:

The period cost is the cost which is incurred during the passage of time. It includes the major part of the ling and administrative expenses of the income statement. This cost is not capitalized. It is to be allocated based on the expenses that are against the revenue.  

Example - Depreciation on delivery trucks, advertising expense, etc

8 0
3 years ago
What does free contract mean?
lozanna [386]
In economics, free contract is the concept that people may decide what agreements they want to enter into. Acontract may be described as freewhen it is free from force or fraud.
7 0
3 years ago
Other questions:
  • Which is not one of the pressing issues facing the future of delinquency prevention?
    11·1 answer
  • What is the fourth part to property rights?
    10·1 answer
  • When a company needs precise answers about the effects of various proposed marketing actions on important outcomes, what type of
    15·1 answer
  • Advantage of pencil​
    12·2 answers
  • The supply of pineapples in Hawaii increases, causing pineapple prices to fall. Lower prices mean that Hawaiian households will
    11·2 answers
  • Paul began his speech as follows: they called lou gehrig the iron horse. this tireless worker played an astounding 2,130 consecu
    9·1 answer
  • "Alan Meer inherits a hotel from his grandmother, Mary, on February 11 of the current year. Mary bought the hotel for $730,000 t
    6·1 answer
  • Stephanie is a calendar year cash basis taxpayer. She owns a 50% profit and loss interest in a cash basis partnership with a Sep
    13·1 answer
  • King corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flow
    14·1 answer
  • The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Hasbro, Inc., a leadi
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!