Answer:
Dallas Boot Corporation
Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________
= $20.
Explanation:
a) Data and Calculations:
Pairs of military combat boots on the bid = 1,000
Direct material $8
Direct labor 6
Variable overhead 3
Variable selling cost (commission) 3
Fixed overhead (allocated) 2
Fixed selling and administrative cost 1
Total cost of production and sales $23
Less commission 3
Total cost per boot $20
b) The bidding price less sales commission will be a price that is greater than $20 per boot. The extra amount per boot will cover the profit expected from the transaction.
Answer: Note Receivable
Explanation:
A Note Receivable is a written document from a party promising to repay another party with interest on amounts borrowed in form of cash or otherwise thereby creating a debtor - creditor relationship between them.
When a promissory note is received from a customer in exchange for an accounts receivable it is a <em>Note Receivable</em> and the Payee being the creditor will record it as such.
Answer and Explanation:
The preparation of the factory overhead budget for August month is shown below:
Total budgeted direct labor $286,000
(5,500 × 4 hours × $13)
variable factory overhead 70%
Budgeted overhead $200,200 ($286,000 × 70%)
Add: Fixed overhead $179,000
Budgeted total factory overhead $379,200
Hence, the budgeted total factory overhead is $379,200
Answer:
The total amount of administrative cost to the Accounting Department is $ 14,900.
Explanation:
In order to calculate the total amount of administrative cost to the Accounting Department, first we need to calculate the Utilization Ratio of the particulars, using the following formua:
Utilization Ratio=(Total amount particular/Utilised by accounting department)
Hence, the Utilization Ratio of Administration costs
=(50/280)
=0.178
the Utilization Ratio of Maintenance fee
=(12,000/36,000)=0.33
the Utilization Ratio of Utilities=(12,000/36,000)=0.33
Therefore, the total amount of administrative cost to the Accounting Department=(0.178×$50,000)+(0.33×$12,000)+(0.33×$6,000)
=$8,900+$4,000+$2,000
=$14,900
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