In a mixed economy who answers the three economic questions

There are advantages to doing business with just one vendor, and you should always stick to just one if you can

Rama09 [41]

Answer:

False.

The advantages from 1 vendor to 1 business relationship is that the trust implicit in the contract is stronger as both parties need each other to gain. Logistically there are obvious advantages to the only use of 1 vendor, but the disadvantage is the power that is gained by the vendor in front of the business.

This means that if a company only uses one vendor, but this vendor provides to several companies. Then, if the vendor decides to charge a higher price for the goods or services the company will have to accept as it does not have another vendor to get the goods or services from.

5 0

3 years ago

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation

Volgvan

Answer:

Unitary cost A : $17.98

Unitary cost B : $10.58

Explanation:

First, we need to calculate the predetermined overhead rate for each activity.

The predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base

Machine setup

= 158,000/2,000

= $79 per setup hour

Materials handling

= 112,000/16,00

= $7 per pound

Electric power

= 25,000/25,000

= $1 per kilowatt.

Now, we can allocate overhead to each product

Allocated MOH = Estimated manufacturing overhead rate × Actual amount of allocation base

Product A

Machine setup

= $79 × 100

= $7,900

Materials handling

= $7 × 1,000

= $7,000

Electric power

= $1 × 2,000

= $2,000

Total = $16,900

Product B

Machine setup

= $79 × 200

= $15,800

Materials handling

= $7 × 1,000

= $7,000

Electric power

= $1 × 4,000

= $4,000

Total = $26,800

Finally, the total cost and the unitary cost

Product A.

Total cost

= Direct materials + Direct labor + Allocated MOH

= $32,000 + $41,000 + $16,900

= $89,900

Unitary cost

= Total cost/Number of units produced.

= $89,900/5,000

= $17.98

Product B

Total cost

= Direct materials + Direct labor + Total allocated MOH

= $41,000 + $38,000 + $26,800

= $105,800

Unitary cost

= Total cost/Number of units produced

= $105,800/10,000

= $10.58

6 0

3 years ago

Oriole Company reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 30,150 $ 20,730 Cost of goods purchased 1

Leviafan [203]

Answer:

2021 2022

Beginning inventory $20,730 $28,010

Cost of goods purchased $150,450 $174,240

Goods Available for sale $171,180 $202,250

Less :Ending Inventory $28,010 $40,660

Cost of goods sold $143,170 $161,590

Note: The ending inventory of 2016 will become beginning inventory of 2017.

6 0

3 years ago

Sushi corp. purchased and installed electronic payment equipment at its drive-in restaurants in san marcos, tx, at a cost of $51

Keith_Richards [23]

Answer:

Sushi Corp.

Depreciation Schedule:

Income Statement Balance Sheet

Year Depreciation Expense Cost Accumulated Book Value

Depreciation

At acquisition $51,300

Straight-line method:

1 $16,200 $51,300 $16,200 $35,100

2 $16,200 $51,300 $32,400 $18,900

3 $16,200 $51,300 $48,600 $2,700

Units-of-production method:

1 $11,664 $51,300 $11,664 $39,636

2 $26,730 $51,300 $38,394 $12,906

3 $10,206 $51,300 $48,600 $2,700

Double-declining-balance method:

1 $34,371 $51,300 $34,371 $16,929

2 $11,342 $51,300 $45,713 $5,587

3 $2,887 $51,300 $48,600 $2,700

Explanation:

a) Data and Calculations:

Cost of electronic payment equipment = $51,300

Residual value = $2,700

Depreciable amount = $48,600 ($51,300 - $2,700)

Volume of payments = 275,000

Useful life = 3 years

Year 1 expected payment transaction = 66,000

Year 2 expected payment transaction = 151,250

Year 3 expected payment transaction = 57,750

b) Straight-line method:

Depreciation expense per year = $16,200 ($48,600/3)

b) Units-of-production method:

Depreciation expense per:

Year 1 = 66,000/275,000 * $48,600 = $11,664

Year 2 = 151,250/275,000 * $48,600 = $26,730

Year 3 = 57,750/275,000 * $48,600 = $10,206

c) Double-declining-balance method:

Depreciation rate = 100/3 * 2 = 67%

Depreciation expense per:

Year 1 = $51,300 * 67% = $34,371

Year 2 = $16,929 * 67% = 11,342

Year 3 = $2,887 ($5,587 - $2,700)

3 0

3 years ago

Briefly explain the weaknesses of the RSA's Industrial Development Zones?

Leni [432]

Revenue losses because of the various tax exemptions and incentives.
Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves.
The number of units applying for setting up EOU's is not commensurate to the number of applications for setting up SEZ's leading to a belief that this project may not match up to expectations.

7 0

3 years ago