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stiv31 [10]
3 years ago
8

Carr Manufacturing makes a product that incurs prime costs of $320,000. Production uses 1,000 setup hours and 1,900 machine hour

s. Activity rates are $75 per setup hour and $50 per machine hour. Carr's total product cost is: a.$95,000. b.$490,000. c.$320,000. d.$170,000.
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

b. $490,000

Explanation:

Total cost refers to the summation of all costs that is expended during production processes of certain products, which is made up of prime cost, overhead cost, etc.

Total cost = Prime cost + Overhead cost

Where,

Overhead cost = Setup [1,000 × $75 per setup] $75,000 + Machine hours [1,900 × $50 per machine hour] $95,000

Overhead cost = $170,000

Prime cost = $320,000

Therefore,

Total cost = $320,000 + $170,000

Total cost = $49,000

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Answer:

$26,036.74

Explanation:

Tom is able to pay $390 per month for 7 years. The interest rate is 6.8 %. Tom will pay an equivalent of the present value of a $390 annuity for & years 6.8 per cent

The applicable formula is

PV = P ×  1 − (1+r)−n

                      r

Where PV is the present value

P is 390

r is 6.8% per year or 0.005666

n is 7 year or 84 months

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PV = $390  x 1- 0. 622133410)

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PV =390  x  (0.37786659/0.00566)

PV = $390 x 66.760

PV = $26,036.74

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Marta_Voda [28]

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