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3 years ago

Tharaldson Corporation makes a product with the following standard costs:

Business

1 answer:

anastassius [24]3 years ago

6 0

Answer:

Tharaldson Corporation

The materials quantity variance for June is:__________

= $1,480

Explanation:

a) Data and Calculations:

Standard Quantity Standard Price Standard Cost

or Hours or Rate Per Unit

Direct materials 7.4 ounces $2.00 per ounce $14.80

Direct labor 0.3 hours $18.00 per hour $5.40

Variable overhead 0.3 hours $7.00 per hour $2.10

Reported Results in June:

Originally budgeted output 2,800 units

Actual output 2,900 units

Raw materials used in production 20,600 ounces

Purchases of raw materials 21,700 ounces

Actual direct labor-hours 490 hours

Actual cost of raw materials purchases $42,200

Actual direct labor cost $12,800

Actual variable overhead cost $3,400

Materials quantity variance = (Actual quantity - Budgeted quantity) * standard rate

= (2,900 - 2,800) * $14.80

= $1,480

= (2,900 - 2,800) * 7.4 * $2

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Celestin Manufacturing Company incurred $5,000 of depreciation on its manufacturing equipment during its first year of operation

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Answer:

A. $5,000 of depreciation expense on its income statement.

Explanation:

Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.

Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.

It does not included fixed cost like depreciation.

As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.

Therefore, the correct option is

A. $5,000 of depreciation expense on its income statement.

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3 years ago

Coronado Industries can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution m

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Answer:

It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy. This is because Plain, generated more contribution per hour than Fancy.

Explanation:

We have to calculate the Contribution Margin per machine hours

This means check which product makes a better use of the scarse resourse

$\frac{Plain\: CM}{Plain \: Machine \: Hours } = CM \: per \:Machine\:Hour\\\\ 80 \div 2 = 40$

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It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy

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3 years ago

Which of the following is an advantage of multiple-choice achievement tests over holistic performance-based assessments? Group o

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Answer:C. Multiple- choice achievement test are criterion -referenced

Explanation:

They can be used to measure different qualitative and quantitative resources of the sample been observed.

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2 years ago

Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per ev

mote1985 [20]

Answer:

Explanation:

In this question, we are told to state what the reaction of Koka and Zola will be;

Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.

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3 years ago

Read 2 more answers

Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round

taurus [48]

Question Completion:

Income Before Taxes (from ongoing operations) $2,470,000

Income Tax Rate (’x2) 30%

5% Preferred Stock ($100 Par, 10,000 shares issued)

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Answer:

The company's EPS is:

= 3.46

Explanation:

a) Data and Calculations:

Income Before Taxes (from ongoing operations) (’x2)= $2,470,000

Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000

Net Income after taxes = $1,729,000

5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Outstanding common stock = $500,000

EPS (Earnings per share) = Net income after taxes/No. of outstanding shares

= $1,729,000/500,000

= $3.458

b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock. As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.

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2 years ago