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likoan [24]
2 years ago
10

The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly furt

her and selling it for $51 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $225,000.
Required:
Prepare an analysis showing whether Jensen should process the assemblies further.
Business
1 answer:
WINSTONCH [101]2 years ago
7 0

Answer and Explanation:

The preparation of the analysis shows whether the assemblies should process further or not is presented below:

Differential revenue  (38,000 units × ($51 - $44)) $266,000

Differential costs:  

Direct material (38,000units × $2 per unit) ($76,000)

Direct labor (38,000units × $2 per unit) ($76,000)

Variable overhead (38,000units × $1 per unit) ($38,000)

Fixed costs ($160,000  - $225,000) ($65,000)

Additional income (loss) from processing further $11,000

Since the amount comes in positive so it should be processed further

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XYZ Co. is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10
stira [4]

Answer:

the predetermined overhead rate is $12.10

Explanation:

The computation of the predetermined overhead rate is shown below:

The Predetermined overhead rate is

= (Estimated total fixed manufacturing overhead ÷ Estimated direct labor hours)

= ($121,000 ÷ 10,000)

= $12.10

hence, the predetermined overhead rate is $12.10

6 0
3 years ago
The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen
ICE Princess25 [194]

Answer:

The new equilibrium combination will be at increases I1 to I2, S1 to S2, and r1 to r2.

Explanation:

Saving or national saving of an economy is amount  of national income or gross domestic product (GPD) that is not spent by the government. Using a simple example of a closed economy, i.e. an economy with no foreign trade in terms and imports, this statement can be mathematically as follows:

Y = C + I + G .......................................... (1)

Where,

Y denotes national income (GDP), C denotes consumption, I denotes Investment, and G denotes government spending.

To get investment, equation (1) can be rewritten by making I the subject of the formula as follows:

I = Y - C - G ......................................... (2)

In economics, saving (S) is always equal to investment (I). Therefore, equation (2) can be rewritten by equating it with I as follows:

I = Y - C - G = S

I = S

Both I and S can be written as initial saving (S1) and initial Investment (I1), and we therefore have

I1 = S1 ................................................................. (3)

Equation (3) is an equilibrium E which implies that Investment (I1) is equal to saving (S1) at the initial real interest rate (r1). Real interest here denotes the price for saving and investment.

Since saving of an economy is amount  of national income or GDP that is not spent by the government, a cuts in the government spending will cause saving to rise, i..e. to S2. Since saving and Investment is always equal to investment, Investment will also rise, i.e. to S2. Increase in I1 to I2 and also in S1 to S2, will cause the real interest rate to rise to r2 at E2 which is the new equilibrium combination of real interest rate, saving, and investment

Therefore, the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant, will be at increases in I1 to I2, S1 to S2, and r1 to r2.

6 0
3 years ago
As a member of the crisis management team, you will attend our biannual crisis management workshops. These workshops will prepar
marin [14]

Answer: Topic Sentence

Explanation:

The Topic sentence contains the idea that the whole paragraph is centered on. It is in the topic sentence that the leader gets a grasp of what is going on and then reads the support sentences to find out an elaboration of this sentence. For this reason it is usually the first sentence though not always.

In the text, the sentence <em>As a member of the crisis management team, you are required to attend our biannual crisis management workshops </em>is a topic sentence because it introduces the Crisis Management team and then elaborates on it.

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3 years ago
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Answer:

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