Answer:
Product X is allocated with 87,500 dollar of the joint cost.
Explanation:
We allocate the values considering the weight of their sales value:
Joint cost: 250,000
We add up the sales values and then calcualte how much each product contributes to that.
Then we multiply that weight or percentage of sales revenue by the joint cost to get the allocated on each product.
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Answer:
Explanation:
Accounting profit
Revenue Pizza- 400000
Revenue beverage 190000
Total revenue 590000
Cost of sales
Wages (55000*2) 110000
Pizza ingredients 50000
Manager 75,000
Pizza baker (60000*3) 180000
Equipment 10000
Finance cost (50000*6%) 3000
Tuition fee 2000
Total expenses 430000
Accounting Profit 160000
Implicit cost
Salary forgone 80000
Rent forgone 12000
Interest on savings (110000*5%) 5500
Total 97,500
Economic profit =(160000-97500) =62500
I will advise John to return to the teaching Job as he earns more in salary than the economic profit of doing business.
option D is the correct answer - $254094
<u>Explanation:</u>
<u>As per the given data in the question, the following is used to calculate the net cash from the operating activities.
</u>
<u>Net Income = 265307
</u>
Add : Depreciation = 27888
Less Increase in Account receivable = (17637)
Less Increase in Closing stock = ($28123)
Add : Prepaid Expenses ( Decrease) = 2852
Less: Decrease in Accounts payable = (4066)
Add: Loss on sale of Asset ( not Operating in nature) = 7873
Therefore, the Net cash from operating activities = $254094
14 Years.
The rule of 70 is a measure of how long it takes for something to double. 70 is divided by the rate of growth or rate of return.
70/5% = 14 years
Answer:
Allocated overhead= $1,430,600
Explanation:
Giving the following information:
The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.
The records show that there had been 230,000 hours of direct labor.
Using direct labor hours as a base.
Predetermined overhead rate= total estimated manfacturing overhead for the period/ total amount of allocation base
Predetermined overhead rate= 1555000/250000= $6.22 per hour
Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600