All categories

3 years ago

A company's unit costs based on 100,000 units are:

Business

1 answer:

Nana76 [90]3 years ago

6 0

Answer: b. $270,000

Explanation:

The opportunity cost is the contribution margin of sales that would be foregone if the special order was fulfilled.

Contribution margin = Selling price - Variable cost

= 165 - 75

= $90

Total contribution cost for the 3,000 units that will be foregone:

= 90 * 3,000

= $270,000

You might be interested in

The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more sl

madreJ [45]

According to macroeconomic principle, the short-run aggregate supply curve has a Positive slope because as prices of final goods and services rise, prices of inputs rise more slowly.

This is based on the idea that the short-run aggregate supply curve shifts by changes in price level and production.

Thus, the Short-run aggregate supply curve is represented as Y = Y* + α(P-Pe).

Here, Y => the production of the economy;

Y* => the natural level of production, and the coefficient is positive;

P => the price level;

Pe => the expected price level.

Hence, in this case, it is concluded that the short-run aggregate supply curve is a significant detail to be noted in the economic analysis of business production.

Learn more here: brainly.com/question/17328500

8 0

3 years ago

During December at Ingrim Corporation, $74,000 of raw materials were requisitioned from the storeroom for use in production. The

Alexandra [31]

Answer:

b. debit to Work in Process of $68,000

Explanation:

The journal entry is as follows:

Work in process A/c Dr $68,000

Factory overhead A/c Dr $6,000

To Raw material A/c $74,000

(Being the requisition from the storeroom is recorded)

Since it is already given that raw material i.e $74,000 requisitioned from the storeroom and the indirect material totaled is $6,000 so the remaining balance transferred to the work in process account i.e $68,000

8 0

3 years ago

A sectarian school is

xxMikexx [17]

It is like a Chriatain school or Islamic school.... religious schools

5 0

4 years ago

Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet

Delicious77 [7]

Answer:

$50.57 ; $175,573.6

Explanation:

The computation of the fixed and variable portions of overhead costs based on machine-hours using high low method is shown below:

Variable cost per hour = (High Overhead cost - low overhead cost) ÷ (High machine hours - low service hours)

= ($581,145 - $503,775) ÷ (8,020 hours - 6,490 hours)

= $77,370 ÷ 1,530 hours

= $50.57

Now the fixed cost equal to

= High overhead cost - (High machine hours × Variable cost per hour)

= $581,145 - (8,020 hours × $50.57)

= $581,145 - $405,571.4

= $175,573.60

3 0

3 years ago

Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]Mulligan Manufacturing Company uses a job order cos

KiRa [710]

Answer:

For Case 1:

Manufacturing overhead applied = 27,000

Total current manufacturing costs = 60,000

Cost of goods manufactured = 64,000

Cost of goods sold = 61,100

For Case 2:

Direct labor = 7,667

Direct material used = 8,333

Beginning work in process inventory = 26,400

Ending finished goods inventory = 15,000

For Case 3:

Direct labor = 5,760

Manufacturing overhead applied = 8,640

Ending work in process inventory = 10,499

Beginning finished goods inventory = 16,199

Explanation:

Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

Also note: See the attached excel file for the table with the computed figure in bold red color.

In the attached excel file, the following calculations are employed:

For Case 1:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000

Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100

For Case 2:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667

Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333

Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400

Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000

For Case 3:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:

Direct labor = x

Therefore, we have:

Manufacturing overhead applied = x * 150%

Since,

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)

Where;

Total current manufacturing costs = 28,500

Direct material used = 14,100

We can therefore substitute the relevant values into equation (1) and solve for x as follows:

28,500 = 14,100 + x + 1.5x

28,500 - 14,100 = 2.5x

14,400 = 2.5x

x = 14,400 / 2.5

x = 5,760

Therefore;

Direct labor = x = 5,760

and

Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640

Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499

Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199

Download xlsx

xlsx

pdf

4 0

3 years ago