Answer:
Effect on income= $140 decrease
Explanation:
Giving the following formula:
Production costs:
Direct material= 10
Direct labor= 1.2
Variable overhead= $1.5
Selling price= $12
Number of units= 200
<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs. </u>
Effect on income= Units sold*unitary contribution margin
Effect on income= 200*(12 - 10 - 1.2 - 1.5)
Effect on income= $140 decrease
Answer:
Journal Entry to record the first interest payment
June 30, 2019
Dr. Interst Expense $19,979.32
Dr. Premium on Bond $1,620.68
Cr. Cash $21,600
Explanation:
First, we need to calculate the premium on bond amortization as follow
Premium on bond amortization = Coupon Payment - Interest Expense
Premium on bond amortization = ( $480,000 x 8% x 6/12 ) - ( $499,483 x 8% x 6/12 )
Premium on bond amortization = $21,600 - $19,979.32
Premium on bond amortization = $1,620.68
Answer:D
Explanation:
Is the relationship between total manufacturing costs and quantity of drink bottles economically plausible.
Answer:
$113.0
Explanation:
A. Cost of material (M):

B. Cost of Labor (L):

C. Manufacturing overhead (O):

D. Selling and administrative expense (S):
Those should not be included in the product cost.
Total cost per unit is:

The unit product cost is closest to: $113.00.