Bailey Company's flexible budget cost formula for indirect materials, a variable cost, is $0.60 per unit of output. If the compa
ny's performance report for last month shows an $800 favorable spending variance for indirect materials and if 9,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:
Nadal Corporation manufactures custom molds for use in the extrusion industry. Based on the data available we first see the formula to calculate the total manufacturing cost of the job 532.
In general, sum of all the cost directly or indirectly included in the manufacturing cost. Therefore the formula is as below
Total Manufacturing Cost = Direct Labor Cost + Direct Materials Cost + Manufacturing Overhead Cost.
Direct labor cost $36,800
Direct materials used $5,000
Predetermined manufacturing overhead rate based on machine hours $17 which is = $17 x 290 hours
C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.
Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.
In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.
