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
Lubov Fominskaja [6]
3 years ago
14

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per

unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $234,000. The company produced 26,000 units, and sold 18,000 units, leaving 8,000 units in inventory at year-end. What is the value of ending inventory under variable costing?
Business
1 answer:
kupik [55]3 years ago
8 0

Answer:

$192,000

Explanation:

Calculation for What is the value of ending inventory under variable costing

Using this formula

Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]

Let plug in the formula

Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]

Value of ending inventory= ($15 units+$9 units)×8,000 units

Value of ending inventory=$24 per units×8,000 units

Value of ending inventory = $192,000

Therefore the value of ending inventory under variable costing will be $192,000

You might be interested in
Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the
Nana76 [90]

Answer:

The answer is "$11,480".

Explanation:

Calculate the benefit as illustrated below:  

               Recovery of costs approved                      Recovery costs approved

Year-1                    $16,000                                            $8,000

Year-2                   $9,600                                             $12,800

Year-3                   $5,760                                             $7,680

Total cost                                                                                                $40,000

Making a reference to:  Cause great costs allowed or permitted

Year-1                                            $16,000      

Year-2                                           $12,800

Year-3                                           $7,680                                             $36,480

Adjusted basis                                                                                       $3,520

Formula:

Recognized Gain = Residual value - Adjusted basis

                             = \$ \ 15,000 - \$ \ 3,520 \\\\ = \$ \ 11,480

8 0
3 years ago
The case of perfectly elastic demand is illustrated by a demand curve that is
Neko [114]
Horizontal is the answer
4 0
3 years ago
Bass Accounting Services expects its accountants to work a total of 26 comma 000 direct labor hours per year. The​ company's est
Tomtit [17]

Answer:

C) $ 15.00 per hour

Explanation:

total labor hours 26,000 per year

total indirect costs $390,000

if the company allocates indirect costs according to labor hours employed, the cost allocation rate should be:

$390,000 / 26,000 = $15 per direct labor hour

This means that for every labor hour employed, $15 will be allocated as indirect costs, e.g. a client requires 50 labor hours per year and $750 (= 50 x $15) in indirect costs.

8 0
3 years ago
Read 2 more answers
If the marginal propensity to consume (MPC) is 0.8 and taxes decrease by $200, then real GDP will: Please choose the correct ans
NNADVOKAT [17]

Answer:

increase by $800

Explanation:

if taxes decrease by 200 then

GPD x tax multipler = net impact on GDP

the tax multiplier is calculated as follows:

\frac{MPC}{1 - MPC}

\frac{0.8}{1 - 0.8} = \frac{0.8}{0.2}

multiplier = 4

tax variation x multiplier

200 x 4 = 800

As the taxes decreases the effect on the GDP is positive.

7 0
3 years ago
Suppose a monopolist discovers a way to perfectly price-discriminate. Under this scenario, consumer surplus is . What are the ef
natali 33 [55]

Answer:

The correct answer is: zero; zero.

Explanation:

If a monopolist discovers a way to perfectly discriminate, it means that the monopolist will charge equal to the willingness to pay from each consumer.

The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.

Since each consumer is paying price equal to its willingness to pay, the consumer surplus will be zero.

There will be no efficiency costs. The monopolist will sell output where the maximum price the consumer is willing to pay is equal to or greater than the marginal cost. So all efficient trades will occur, there will be no efficiency costs.

4 0
3 years ago
Other questions:
  • Which of the following tasks is an example of how scientists might use writing skills in their jobs?
    10·2 answers
  • Which of the following is a potential danger of offering common stock to investors?
    10·2 answers
  • "disorientation that causes perpetual stress in people who settle overseas for lengthy periods of time is commonly referred to a
    8·1 answer
  • The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new varie
    13·1 answer
  • Bad Debt Expense is considered __________.a. an avoidable cost in doing business on a credit basis. b. an internal control weakn
    15·1 answer
  • Which of the following is NOT a requirement for using the transportation​ model? A. the capacity or supply per period at each or
    12·1 answer
  • One key to success in a career is to be an accomplished
    13·2 answers
  • Benefits for organizations that successfully implement supplier relationship management can include
    11·1 answer
  • What change could be considered an effective sign of economic recovery from the Great Recession?
    9·1 answer
  • Why do people start business?​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!