It's to insure that manufacturers honor their warranties and to reduce the chance that a consumer will be misled about the nature of the purchase.
Answer:
correct option is A. $331,000
Explanation:
given data
Direct materials = $86,000
Direct labor = 130,000
Variable factory overhead = 57,000
Fixed factory overhead = 135,000
Total costs = $408,000
avoidable = $58,000
to find out
highest price that McMurphy should be willing to pay for 12,000 units of the part is
solution
we get here highest price that McMurphy should be willing to pay for 12,000 units of the part that is express as
highest price = Direct material + Direct Labor + variable factory overhead + avoidable fixed overhead .....................1
put here value we get
highest price = $86000 + $130000 + $57000 + $58000
highest price = $331,000
so correct option is A. $331,000
Depreciation Expense $ 4
<h3>What is
Depreciation?</h3>
Depreciation in accounting refers to two aspects of the same concept: First, the actual decrease in the fair value of an asset, such as the annual decrease in the value of factory equipment.
The claim for depreciation on assets used by the assessee for the purpose of business or profession during the previous year. If an asset has been in use for more than 180 days, depreciation of 50% is allowable in that year.
Depreciation in Action - If a company purchases a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset at a rate of Rs. 20,000 per year for a period of 5 years.
To know more about Depreciation follow the link:
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Answer:
70.3%
Explanation:
Current period cost-to-retail percentage is:
- Beginning inventory $70,000 $107,000
- Plus: Net Purchases $302,290 $450,000
- Plus: Net markups $23,000
- Less: Net markdowns ($43,000)
Goods available for sale (excluding beginning inv.) $302,290 $430,000
Goods available for sale (including beginning inv.) $372,290 $537,000
Cost-to-retail percentage = $302,290 / $430,000 = 70.3%
