Answer:
$3,283
Explanation:
Calculation for the overhead cost be added to Job W at year-end
Using this formula
Overhead cost =(Overhead cost / Direct Labor) *Job W Direct Labor
Overhead cost=($6,365 / $9,500) *$4,900
Overhead cost=0.67*$4,900
Overhead cost=$3,283
Therefore the overhead cost be added to Job W at year-end is $3,283
Answer:
The correct answer is letter "E": cost of debt.
Explanation:
The cost of debt is the interest a company pays on its borrowings. It is expressed as a percentage rate. Also, the cost of debt can be calculated as a before-tax rate or an after-tax rate. Before interest is deductible for income taxes, the cost of debt is usually expressed as an after-tax rate.
In an organizational budget, variable expenses are the total cost that depended on the amount of goods produced.
Example of variable expenses are:
- Raw material expenses
- Cost of plastic to make a handphone case
- Cost of carrots if the company is selling carrot pies
- etc
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Total cost = $8,600
Total units = 400 Units
Direct labor hour per unit = 5
Variable cost = $1.50
So, we can calculate the fixed cost by using following formula:
Fixed cost = Total cost - Total Direct labor cost
Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000
By putting the value in the formula, we get
Fixed cost = $8,600 - $3,000
= $5,600
Answer:
A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.
Explanation:
