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vaieri [72.5K]
3 years ago
5

Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. T

he normal production capacity for the Fabrication Department is 10,000 hours for the month. Fixed costs are budgeted at $60,000 for the month.
Required:
a. Prepare a monthly factory overhead flexible budget for 9,000, 10,000, and 11,000 hours of production.
b. How much overhead would be applied to production if 9,000 hours were used in the department during the month?
Business
1 answer:
Phantasy [73]3 years ago
3 0

Answer:

a. <u>Monthly Factory Overhead Cost Budget Fabrication Department</u>

Direct Labor Hours                        9,000          10,000       11,000

Variable Factory Overhead          $40,500    $45,000    $49,500

Cost at $4.50 per hour

Fixed Factory Overhead Costs    $60,000    $60,000    $60,000

Total Factory Overheads             $100,500  $105,000  $109,500

b. Normal Production = 10,000 Units

Total Factory Overheads = $105,000

Factory Overhead Cost per unit = $105,000 / 10,000 Units

Factory Overhead Cost per unit = $10.5 per unit

Factory Overhead Cost absorbed when 9,000 hours used in the department:

= 9,000 Hours * $10.5 per Unit

= $94,500

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Len [333]

Higher Prices can encourage competition and cause an increase in the supply for the Short-run Macroeconomic model. Therefore, Option B is the correct choice.

<h3>How supply can be increased in the short run?</h3>

In the marketplace model, supply slopes up due to the profit purpose of individual firms. If a corporation receives a better price, they'll make a higher profit via way of means of selling more, so the quantity supplied will increase while the price will increase.

Therefore, Higher Prices can encourage competition and cause an increase in the supply for the Short-run Macroeconomic model. Therefore, Option B is the correct choice.

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5 0
2 years ago
Random Co. purchased a machine for $400,000 that has a five year life and will produce annual net cash inflows of $110,000 per y
inysia [295]

Answer:

NPV = $39,230

Payback period = 3.64 years

Explanation:

The net present value (NPV) = (net annual cash flow x interest factor) - investment

NPV = ($110,000 x 3.993) - $400,000 = $439,230 - $400,000 = $39,230

The payback period = investment / net annual cash flow = $400,000 / $110,000 = 3.64 years or 3 years, 7 months and 19 days

You can also calculate the PV of each annual cash flow which will give you a more precise result, but the variation is minimal:

PV = ($110,000 / 1.08) + ($110,000 / 1.08²) + ($110,000 / 1.08³) + ($110,000 / 1.08⁴) + ($110,000 / 1.08⁵) = $439,198

and the NPV = $39,198

5 0
3 years ago
Trent runs a small business in which he manufactures hinges to be used in kitchen and storage cabinetry. He stores the hinges in
Sonbull [250]

<u>Full question:</u>

Trent runs a small business in which he manufactures hinges to be used in kitchen and storage cabinetry. He stores the hinges in his warehouse and delivers them to various cabinet makers prior to them completing the cabinets' construction. Trent is a

A. retailer.

B. intrapreneur.

C. service provider.

D. wholesaler.

E. direct marketer

<u>Answer:</u>

Trent is a  wholesaler

<u>Explanation:</u>

A wholesaler acquires the goods from a producer in mass quantity and re-sells it to retailers in tiny portions. Wholesalers obtain a central position in the retailing course set-up. Warehousing is an essential marketing function offered by the wholesaler.

A wholesaler holds a huge accumulation of goods for retailers. Wholesalers support to maintain prices by regulating stocks according to demand. Many wholesalers manage their warehouses for stocking goods. . He also trades goods to the retailer on account. Thus, at both edges the wholesaler serves as a financier.

6 0
3 years ago
Jane is a roofing contractor. Jane's friend needed a new roof but did not have the cash to pay. Jane's friend instead paid with
monitta
According to the references used I believe the answer would most likely be ...
6 0
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cestrela7 [59]

Answer:

$72,000

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To calculate investment interest expense dedcution, we need to know the total investment income  & total investment interest expenses

Then there're 2 scenarios as followings:

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In this example, Ramon's investment income is  $72,000 ($34,500 of interest and a $37,500 net capital gain on the sale of securities); is lower than his interest expenses of $83,100.

So Ramon is entiled to deduct $72,000 all the entire investment interest expense in current year

7 0
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