Answer:
1.42
Explanation:
The fixed asset turnover is a financial ratio that shows how much sales is generated by management for each $1 invested in fixed asset over the period. It is the ratio of sales to average fixed asset.
Average fixed asset is the sum of the beginning and ending fixed asset divided by 2.
Average fixed assets
= ($4.2 + $6.3)/2 (Amount in millions)
= $5.25 million
The company's fixed asset turnover ratio for 2018
= $7.4/$5.2
= 1.42
It means that the company makes a sales revenue of $1.42 for every $1 invested in fixed assets.
Answer:
Retained earning
Explanation:
A company's profits are distributed to shareholders as dividends, retained in the business for reinvestment, or both. Therefore, retained earning are profits that were not distributed to shareholders. They are funds that belong to owners but withheld for use in the business.
Retained earnings form part of a company's capital. It is money that shareholders have contributed to the business by not sharing in profits.
Gross profit shows how much money you made in relation to the cost of goods sold, this calculation is very important when you need to know wether a product is profitable or not. Net profit also substracts the expenses (building machinery,etc).
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Answer:
1. $3.18 and $2.55
2. expected annual activity
Explanation:
The computation of the predetermine overhead rate is shown below:
1. For Expected actual activity, it is
= (Overhead for the coming year) ÷ (completed jobs × direct labor hours)
= ($15,600) ÷ (140 jobs × 35 direct labor hours)
= $3.18
And, for Theoretical activity, it is
= (Overhead for the coming year) ÷ (completed jobs × direct labor hours)
= ($15,600) ÷ (175 jobs × 35 direct labor hours)
= $2.55
2. Based on the predetermined overhead rate, the expected actual activity has highest predetermined overhead rate as compared to the theoretical activity
So the Reggie should use the same
