The two ethical ideals may be described as either _________ or ___________.
1 answer:
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Solution :
1. Allocation on the basis of
LX EX
Direct Material 125000 90000
Direct cost 90000 60000
Manufacturing overhead
(202500/5000 x 2000) (202500/5000 x 3000)
Total cost 296000 271500
Units produced 50 30
Cost per unit 5920 9050
2. Allocation on the basis of :
LX EX
Direct Material 125000 90000
Direct labor cost 90000 60000
Manufacturing overhead 121500 81000
(202500/150000 x 90000) (202500/150000 x 60000)
Total cost 336500 231000
Units produced 50 30
Cost per unit 6730 7700
3. Allocation on the basis of
LX EX
Direct Material 125000 90000
Direct labor cost 90000 60000
Manufacturing overhead 112500 90000
(202500/2700 x 1500) (202500/2700 x 1200)
Total cost 327500 240000
Units produced 50 30
Cost per unit 6550 8000
Answer:
Jon's conclusion is not valid.
Explanation:
To a particular extent the tax to be paid by a person can be minimum 0. It can never happen that the tax is negative and tax department pays back to the client, with no tax liability.
Jon contends that from the previous year the tax paid by him is less by 150%, which cannot be true as the tax amount can be reduced by 100% making tax = 0.
Assuming tax paid last year = $100
Tax paid in current year = $100 - $100 150%
= $100 - $150 = -$50
It means tax paid is negative $50, that concludes tax department paid $50 to Jon, which cannot be true.
Thus, Jon's conclusion is not valid.