Ask question

Ask question

All categories

2 years ago

6

The following cost behavior patterns describe anticipated manufacturing costs for 2019: raw material, $7.50/unit; direct labor,

$10.50/unit; and manufacturing overhead, $297,500 $8.50/unit. Required: If anticipated production for 2019 is 35,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)

1 answer:

kykrilka [37]2 years ago

3 0

Answer:

Unit cost

$

Variable costing 18

Absorption costing 26.5

Explanation:

<em>Variable costing values every unit produced at the marginal cost</em>. Marginal cost is the sum of direct material, direct labor and variable overhead.

Marginal cost = 7.50 + 10.50 =$18

<em>Absorption costing values every unit at full cost</em>. Full cost is the sum of marginal and fixed overhead cost per unit,

Fixed overhead cost per unit = $297,500/35,000=8.5

Full cost = 7.50 + 10.50 + 8.50= $26.5

Unit cost

$

Variable costing 18

Absorption costing 26.5

<u />

You might be interested in

Any restructuring of operations that ____ the difference between a foreign currency's inflows and outflows may ____ economic exp

zvonat [6]

Answer:

The correct answer is c. reduces; reduce.

Explanation:

Economic exposure is a type of exposure to exchange rate risk caused by the effect of unexpected currency fluctuations on a company's cash flows, foreign investment, and future earnings.

Economic exposure, also known as operating exposure, can have a substantial impact on a company's market value, as it has far-reaching effects and is long-term in nature. Companies can protect themselves against unexpected currency fluctuations by investing in currency markets (FX).

Unlike transaction exposure and conversion exposure (the other two types of currency exposure), economic exposure is difficult to measure accurately and therefore difficult to hedge. Economic exposure is also relatively difficult to hedge because it faces unexpected changes in exchange rates, unlike expected changes in exchange rates, which form the basis of companies' budget forecasts.

5 0

3 years ago

Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new v

NARA [144]

Answer:

The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.

Explanation:

Margin on selling vehicle = Average vehicle selling price * Margin = $23,700 * 11% = $2,607

Margin generated by 78% of people who return for service over 5 years = Number of times * Margin generated on each service = 10 * $103 = $1,030

Total estimated customer lifetime value (CLV) = Margin on selling vehicle + (Margin generated by 78% of people who return for service over 5 years * 78%) + (Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,607 + ($1,030 * 78%) + ($0 * 22%) = $3,410.40

Therefore, the total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.

6 0

3 years ago

Felton Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year

tia_tia [17]

Answer:

Unearned Service Contracts Revenue = $330,000

Explanation:

Unearned Service Contracts Revenue refers to the expected revenue from a contracts been carried and has yet been paid.

Unearned Service Contracts Revenue for 2010 = $100,000, for 2011 = $160,000 and for 2012 = $70,000

Unearned Service Contracts Revenue = $100,000 + $160,000 + $70,000

Unearned Service Contracts Revenue = $330,000

7 0

3 years ago

If property rights are not well enforced, all of the following are likely to occur except;_________

aleksandrvk [35]

Answer:

If property rights are not well enforced, all of the following are likely to occur except;_________

A. a significant number of people will be willing to risk their funds by investing them in local businesses.

Explanation:

Other options are likely to occur, except option A. Investors cannot risk their capital investing in the local economy. This is the fate of an economy where property rights are not protected. This also underlines the need for each government to ensure that property rights are recognized and legally protected.

8 0

2 years ago

1.42 pointsItem 4Item 4 1.42 pointsOn January 1, Revis Consulting entered into a contract to complete a cost reduction program f

deff fn [24]

Question Continuation

Prepare the following journal entries for Revis:

1. The journal entry on January 31 to record the first month of revenue under the contract.

2. Assuming total cost savings exceed target, the journal entry on June 30 to record receipt of the bonus.

3. Assuming total cost savings fall short of target, the journal entry on June 30 to record payment of the penalty.

Answer:

1. The journal entry on January 31 to record the first month of revenue under the contract.

Possible Price -------------------------------Possibility------------Expected Amount

$130,000 ($20,000*6+$10,000) ------80% ------- --------------$104,000 (80% * $130,000)

$110,000 ($20,000*6-$10,000) --------20% -----------------------$22,000 (20% * $110,000)

Expected value--------------------------------------------------------------$126,000 ($104,000 + $22,000)

Accounts ------------------------Debit------------Credit

Cash -------------------------------$20,000 (Debit)

Bonus receivable----------------$1,000 (Debit)

Service revenue --------------------------------- $21,000 ($126,000/6)(Credit)

2. If total cost savings exceed target, record the entry on June 30 for receipt of the bonus

Accounts --------------Debit--------------------------Credit

Cash --------------------- $10,000 (Debit)

Bonus receivable-------------------------------------$6,000 (Credit) ($1000 * 6)

Service revenue ------------------------------------- $4,000 (Credit)

3. If total cost savings fall short of target and record the entry on June 30 for payment of the penalty.

Accounts --------------Debit--------------------------Credit

Service Revenue ---------------- $16,000 (Debit)

Bonus receivable-------------------------------------$6,000 (Credit) ($126,000 / 6)

Cash ------------------------------------- $4,000 (Credit)

3 0

3 years ago