Ask question

Ask question

All categories

2 years ago

7

A company's prime costs total $3,800,000 and its conversion costs total $7,800,000. If direct materials are $1,400,000 and facto

ry overhead is $5,400,000, then direct labor is:

1 answer:

bonufazy [111]2 years ago

6 0

Explanation:

Conversion costs = Direct labor + Factory overhead

7,800,000 = Direct labor + 5,400,000

Direct labor = $2,400,000

First option is the correct option.

I know this much only.

You might be interested in

Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of

Katarina [22]

Answer:

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07%

Explanation:

WACC=Ke*E/V+Kp*P/V*Kd*D/V*(1-t)

WACC when additional funds is raised from retained earnings:

Ke is the cost of equity is 14.7%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=14.7%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(14.7%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=11.73%

WACC when additional funds is raised from common equity capital

Ke is the cost of equity is 16.8%

Kd is the cost of debt is 11.1%

Kp is the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=16.8%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

=(16.8%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

=12.80%

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07% (12.80%-11.73%)

8 0

3 years ago

It has been estimated that there are 107 billion pieces of mail per year. if the postage rates are raised 3¢, how much extra rev

Virty [35]

6783$ a month I think that's the answer I hope

7 0

3 years ago

What do individual shareholders gain when they buy shares of a company’s stock?

Sholpan [36]

A partial ownership in the corporation.

3 0

2 years ago

Q 8.14: The financial statements of the Imagine Company report net sales of $1,000,000 and accounts receivable of $700,000 and $

sesenic [268]

Answer:

2 times

Explanation:

The computation of accounts receivable turnover is shown below:-

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable

where,

Net credit sales is $1,000,000

And, the Average accounts receivable is

= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2

= ( $700,000 + $300,000) ÷ 2

= $500,000

Accounts receivable turnover = Net sales ÷ Average accounts receivable

= $1,000,000 ÷ $500,000

= 2 times

6 0

3 years ago

Beaver Construction purchases new equipment for $50,400 cash on April 1, 2015. At the time of purchase, the equipment is expecte

mariarad [96]

Answer:

Beaver Construction

1. Journal Entry:

April 1, 2015:

Debit Equipment $50,400

Credit Cash Account $50,400

To record the purchase of new equipment for cash.

2. December 31, 2015:

Debit Depreciation Expense-Equipment $5,400

Credit Accumulated Depreciation - Equipment $5,400

To record the depreciation expense for the period.

3. Adjusted balances of Accumulated Depreciation and Depreciation Expense at December 31, 2015:

a) Accumulated Depreciation - Equipment

Beginning balance $0

Depreciation Expense $5,400

Ending balance $5,400

b) Depreciation Expense-Equipment $5,400

Explanation:

The depreciation expense for equipment is $5,400 ($600 x 9) since the depreciation charge for each month is $600. The equipment was used from 9 months from April 1 to December 31 in 2015. This implies that only $5,400 will be charged to Income Statement for the period.

7 0

3 years ago