An outside supplier has offered to sell the company all of these parts it needs for $48.50 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $273,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $8.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 70,000 units required each year
Answers
Answer:
the maximum amount that willing to pay is $99.10
Explanation:
The computation of the maximum amount that willing to pay is shown below:
Here the maximum per unit is
= $48.50 + (($17.80 + $19 + $1 + $17.10 - $8.20) × 70,000 units + $273,000) ÷ 70,000 units
= $48.50 + (($46.70 × 70,000 units) + $273,000) ÷ 70,000 units
= $48.50 + $50.60
= $99.10
hence, the maximum amount that willing to pay is $99.10
Related Questions
Assume Zap Industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 2,496,320 $ 1,937,472 Allowance for Doubtful Accounts (126,400 ) (103,360 ) Accounts Receivable, Net $ 2,369,920 $ 1,834,112 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019
Answers
Answer: $23,040
Explanation:
Based on the information given in the question and assuming the company recorded no write-offs or recoveries during 2019, the amount of Bad Debt Expense reported in 2019 will be the difference between the ending balance of the allowance account and the beginning balance of the allowance account. This will be:
= $126,400 - $103,360
= $23,040
Therefore, the correct answer is $23,040
Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 127,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.
In March 2020, the company incurs the following costs in producing 107,000 units: direct materials $455,000, direct labor $746,000, and variable overhead $971,000. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Answers
Answer:
Gundy Company
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2020
Budget Actual
Units produced 107,000 107,000
Variable Costs:
Direct Materials $428,000 $455,000 $27,000 U
($4 * 107,000)
Direct labor $749,000 $746,000 $3,000 F
($7 * 107,000)
Overhead $963,000 $971,000 $8,000 U
($9 ×* 107,000)
Total variable costs $2,140,000 $2,172,000 $32,000 U
Fixed Costs:
Depreciation $434,800 $434,800 $0
Supervision $108,700 $108,700 $0
Total fixed costs $543,500 $543,500 $0
Total costs $2,683,500 $2,715,500 $32,000 U
Workings:
Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800
Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12 = $108,700
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
Answers
Questions
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
What is the company cost variance related to direct labour
Answer:
Direct labour cost total Variance = $66,000 favorable
Explanation:
The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.
The standard labour cost of labour per unit of output is not given. So, we work it out first
Standard labour cost per unit= 48/60× $16= 12.8 per unit
$
20,000 units should have cost (20,000× 12.8) 256,000
but did cost 190,000
Direct labour cost total Variance 66,000 favorable
Direct labour cost total Variance = $66,000 favorable
The Direct Labor cost variance is $66,000.
What is labor cost variance?It is the difference between the standard and actual labor cost required to produce goods or services.
Labor cost variance= Standard Cost of Labor – Actual Cost of Labor .
Given:
1 unit=3/4th pound of direct material at the rate $12/ pound
1 unit takes 48 minutes
Direct labor cost=$16/ hour
Actual production=20,000 units
Direct material required = 14,600 pounds
Total cost=$168,000
Required - direct labor hours=11,000 at total cost $190,000.
Standard labor cost per unit= time taken to complete 1 unit X hourly Rate of labor
= 48/60× $16= 12.8 per unit
Standard Cost of labor (20,000× 12.8) $256,000
Less-Actual Cost of labor (given) $190,000
Direct labor cost Variance $66,000
Therefore, the Labor cost variance is $66,000.
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https://brainly.com/question/15178583
who is he and what’s his product
Answers
Answer:
Steve Jobs and he was the CEO of apple
Explanation:
so his products would be iphones, ipads, mac books, etc
Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold.
a) True
b) False
Answers
Sam and Sarah are thinking about getting married. However if either of them cheats on the other, they would get a payoff of 10, while the other person gets zero. If neither cheat, they stay with each other and get a payoff of 7 each and if both cheat, the relationship falls apart and each get a payoff of 1. What is the Nash equilibrium of this game?
Answers
Answer:
Self-interest can sometimes lead to sub-optimal outcomes.
Explanation:
In the field of economics, Nash equilibrium can be defined as the system which is stable and it involves the interaction of various participants where no participant can gain by the unilateral change in its strategy if the strategies of the others does not change. In order words, the player can obtain the desired outcome by not deviating or changing from their initial strategy.
In the context, as the outcome of cheating is more than staying together, both Sam and Sarah will tend to cheat and then end up achieving less payoff then what they will get if they stay together.
Therefore, sometimes, self interest can lead to the sub optimal outcomes.
HHEEELPPS
PLZZZZZZZZZZZZZ
Answers
The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 150000 Depreciation on factory building 90000 Total manufacturing overhead $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
Answers
Answer:
$1,350,000
Explanation:
Calculation to determine the total manufacturing overhead costs
First step is to calculate the Variable overhead
Variable overhead= $720,000 + $180,000 +$150,000
Variable overhead=$1,050,000
Second step is to calculate Unitary variable overhead
Unitary variable overhead= $1,050,000/50,000
Unitary variable overhead= 21
Now let calculate the total manufacturing overhead costs
For 60,000 units:
Total Manufacturing Overhead Costs = 21*60,000 + 90,000
Total Manufacturing Overhead Costs= $1,350,000
Therefore the total manufacturing overhead costs is $1,350,000
The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions:
a. Maintain the general ledger
b. Maintain the accounts payable ledger
c. Maintain the accounts receivable ledger
d. Prepare checks for signature
e. Maintain the cash disbursements journal
f. Issue credits on returns and allowances
g. Reconcile the bank account
h. Handle and deposit cash receipts
Assuming equal abilities among the three employees, the company asks you to
assign the eight functions to them to maximize internal control. Assume that these employees will perform no accounting functions other than the ones listed.
Answers
Answer:
16
Explanation:
lol
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $420,000 (21,000 units at $20 each). During 2021, 82,000 units were purchased, all at the same price of $23 per unit. 86,000 units were sold during 2021. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements
Answers
Answer: Profit of $9,000
Explanation:
First find the Cost of goods sold assuming the LIFO was used. 82,000 of the most recent stock will be sold and 4,000 will be taken from the beginning stock to reach 86,000 units.
= (82,000 units * 23) + (4,000 * 20)
= $1,966,000
LIFO liquidation profit(loss):
= (Sales - Cost of Goods sold) * ( 1 - Tax)
Selling price is assumed to be $23 which is cost of recent inventory.
= [(86,000 * 23) - 1,966,000 ] * (1 - 25%)
= 12,000 * 0.75
= $9,000
For an open economy under a floating exchange rate regime, _________________________.
a.) Monetary policy is highly effective.
b.) Fiscal policy is highly effective.
c.) Monetary policy is ineffective.
d.) B and C.
Answers
Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent and each worker toils 40 hours per week for four weeks each month. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?
Answers
Answer: $1000
Explanation:
Marginal Revenue Product simply refers to the additional revenue that's gotten when one or more unit of input is used. It is the marginal revenue that us gotten as a result of additional resource.
From the question, we are informed that clearing one acre brings in $1,000 in revenue, therefore the marginal revenue product of hiring one low-skilled worker to clear woodland for one month is $1000
Pella Corp. is headquartered in Carlisle, Wisconsin. Pella has a Wisconsin state income tax base of $434,000. Of this amount, $76,800 was nonbusiness income. Pella's Wisconsin apportionment factor is 28.52 percent. The nonbusiness income allocated to Wisconsin was $61,900. Assuming a Wisconsin corporate tax rate of 7.75 percent, what is Pella's Wisconsin state tax liability
Answers
Answer:
$12,642
Explanation:
The computation of the state tax liability is given below:
Tax Liability is
= [{(Income Tax Base - Non Business Income) × Apportionment Factor} + Allocated Non- business Income] × tax rate
= [{($434,000 - $76,800) × 0.2852} + $61,900] x 0.0775
= [$101,873.44 + $61,250] × 0.0775
= 163,123.44 × 0.0775
= $12,642
Evan is single and has AGI of $277,300 in 2020. His potential itemized deductions before any limitations for the year total $52,300 and consist of the following: Medical expenses (before the AGI limitation) $29,000 Interest on home mortgage 8,700 State income taxes 9,500 Real estate taxes 3,600 Charitable contributions 2,500 After all necessary adjustments are made, what is the amount of itemized deductions Evan may claim
Answers
Answer:
$24,402.50
Explanation:
Medical expenses can be deducted only if they are above 7.5% of your AGI:
$277,300 x 7.5% = $20,797.50
Medical deductions = $29,000 - $20,797.50 = $8,202.50
Evan can deduct $8,700 in mortgage interests
Total deductions for state and local taxes for a single filer = $5,000
Charitable contributions are also deductible = $2,500
total deductions = $8,202.50 + $8,700 + $5,000 + $2,500 = $24,402.50
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 19 percent, what is the current share price
Answers
Answer:
P0 = $45.299899 rounded off to $45.30
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so ong is the constant growth rate in dividendsr is the discount rate or required rate of returnP0 = 22 / (1+0.19) + 15 / (1+0.19)^2 + 6 / (1+0.19)^3 + 3.2 / (1+0.19)^4 +
[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]
P0 = $45.299899 rounded off to $45.30
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Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $23 million in invested capital, has $3.45 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 50% and pays 12% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.
Answers
Answer:
ROIC for firm HL = 11.25%
ROIC for firm LL = 11.25%
Explanation:
Given:
EBIT = $3,450,000
Tax rate = 25%
Invested capital = $23,000,000
Note that the information above is the same for both firms HL and LL. This implies that their ROIC will be the same as calculated below:
ROIC = (EBIT * (100% - Tax rate)) / Invested capital ……………………. (1)
Substituting the values into equation (1), we have:
ROIC = ($3,450,000 * (100% - 25%)) / $23,000,000 = 0.1125, or 11.25%
Therefore, we have:
ROIC for firm HL = 11.25%
ROIC for firm LL = 11.25%
Flexible Budget for Assembly Department Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.
Answers
Answer:
Results are below.
Explanation:
Giving the following formula:
Direct labor per filing cabinet= 18/60= 0.3
Direct labor rate $28 per hour
The supervisor salary and depreciation will remain constant, we will not take them into account.
70,000 units:
Direct labor hours= (0.3*70,000)= 21,000
Direct labor cost= 21,000*28= $588,000
80,000 units:
Direct labor hours= (0.3*80,000)= 24,000
Direct labor cost= 24,000*28= $672,000
90,000 units:
Direct labor hours= (0.3*90,000)= 27,000
Direct labor cost= 27,000*28= $756,000
Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the logo of the company on the side of the truck for $1,600. The truck license is an additional $160. The truck also undergoes a one-time safety testing for $290. Finally, the truck also requires a tune up and oil change for $500. What does Engler record as the cost of the new truck
Answers
Answer:
$61,390
Explanation:
Calculation to determine What does Engler record as the cost of the new truck
Using this formula
Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change
Let plug in the formula
Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500
Cost of new truck= $61,390
Therefore what Engler will record as the cost of the new truck is $61,390
DeShawn wants to fill out a financial application For post secondary education. What personal Information does DeShawn Most likely need to fill Out the application?
His income
His childhood address
His extracurricular activities
His grade point average in high school.
Answers
Answer:his income
Explanation:
His income should be need to fill out the application.
The following information should be considered:
Since the person wants to fill out the financial application. So here only his income needs to fill so that his earning capacity should be known. The address, extracurricular activities, and the grade point should not be relevant in the given situation.Therefore we can conclude that His income should be need to fill out the application.
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Suppose a less developed country is having difficulty making payments on its foreign debts. What option does this nation have?
Targ
It can ask its lenders for more loans in exchange for accepting a foreign portfolio investment from the World Bank.
It can ask its lenders to forego the payments until the economy of the debtor nation is stronger.
It can ask its lenders to forgive the loans in exchange for accepting temporary control by the lender nation.
It can ask its lenders for debt rescheduling in exchange for accepting a stabilization program from the IMF.
Answers
Answer:
it can ask its lenders for dept resceduling in exchange for accepting a stabilization program from the IMF
Explanation:
gradpoint
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers
The capital budgeting committee of the Caldwell Pipe Corporation is evaluating the possibility of replacing its old pipe-bending machine with a more advanced model. Information on the existing machine and the new model follows: Existing machine New machine Original cost $200,000 $400,000 Market value now 80,000 Market value in year 5 0 20,000 Annual cash operating costs 40,000 10,000 Remaining life 5 yrs 5 yrs Refer to Caldwell Pipe Corporation. If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ________ than the profit that would have been generated had the existing machine been retained for five years.
Answers
Answer:
Caldwell Pipe Corporation
If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ___$150,000_____ than the profit that would have been generated had the existing machine been retained for five years.
Explanation:
a) Data and Calculations:
Existing machine New machine
Original cost $200,000 $400,000
Market value now 80,000
Market value in year 5 0 20,000
Annual cash operating costs 40,000 10,000
Remaining life 5 yrs 5 yrs
Total cash operating costs $200,000 $50,000
Difference between the annual cash operating costs = $150,000 ($200,000 - $50,000)
b) Corporate profit is based on the difference between the net revenue and the cost of operations. With the old machine, the total cash operating costs after 5 years will be $200,000 ($40,000 * 5). On the other hand, with the new machine, the total cash operating costs after 5 years will be $50,000 ($10,000 * 5). This makes an operating cost difference of $150,000 ($200,000 - $50,000).
Malone Co. owned 70% of Bernard Corp.'s common stock. During November 2021, Bernard sold merchandise to Malone for $150,000. At December 31, 2021, 40% of this merchandise remained in Malone's inventory. For 2021, gross profit percentages were 25% of sales for Malone and 30% of sales for Bernard. The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is: Multiple Choice $18,000. $45,000. $36,000. $11,250. $14,400.
Answers
Answer:
$18,000
Explanation:
Calculation to determine what The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:.
Using this formula
Intra-Entity Gross Profit =(Transfer Price × Percentage of Bernard's GP) × Intra-Entity Transfers Remaining in Ending Inventory
Let plug in the formula
Intra-Entity Gross Profit=($150,000×30% )×40%
Intra-Entity Gross Profit=$45,000×40%
Intra-Entity Gross Profit=$18,000
Therefore The amount of intra-entity gross profit remaining in ending inventory at December 31, 2021 that should be eliminated in the consolidation process is:$18,000
Jalissa owns a sandwich shop and wants to expand her business. She has talked to other local shop owners for ideas about how to do this and a few suggested adopting an online presence. How could e-commerce help Jalissa expand her business?
A: It can attract customers from a wider area.
B: It can increase her revenue by allowing her increase prices.
C: It can decrease her security costs.
D: It can eliminate the need for workers in her shop.
Answers
Answer: it can attract customers from a wider area.
Explanation:
the burning of candle stick is a good example of ____change .(a) temporary (b) permanent (c) conditionally
Answers
Answer:
Explanation:
Option A temporary is the correct answer
Which of these are mathematical laws that help us solve numerical problems? O A decimals O B. graphs O C. formulas OD. percentages O E. tractions
Answers
Answer:
The answer is C. Formulas.
Explanation:
Formulas: It is just a mathematical rule that is expressed in numerals or some other symbols and is used to solve a numerical problem.
Although ZipCar has some routine operating tasks, its rules and regulations are, for the most part, not strict. ZipCar's decision making does not follow a strict chain of command, and first-line customer service agents have the authority to make decisions without management approval. This information primarily indicates that ZipCar lacks ________. a organizational culture b cross-functional teams c bureaucratic characteristics d cost controls e strategic alliances
Answers
Answer: bureaucratic characteristics
Explanation:
From the information given, we can say that ZipCar lacks bureaucratic characteristics. A bureaucratic organization is an organization with several layers of systems and processes and this brings about complexity and delay in decision making as it is hierarchical.
Since ZipCar's decision making does not follow a strict chain of command, and the first-line customer service agents have the authority to make decisions without management approval, this shows that the organization lacks bureaucratic characteristics.
Rare earth metals are used in the production of many of the personal electronic devices you use every day. Suppose there is an unexpected decrease in the price of rare earth metals. a. The decrease in price of rare earth metals will lead to negative cost-push inflation. demand-pull inflation. an increase in expected inflation. negative demand-pull inflation. b. Illustrate the effect of the decrease in the price of rare earth metals by making the appropriate adjustments to the Phillips curve.
Answers
Answer:
a. negative cost-push inflation
b. Phillips Curve will shift right
Explanation:
a. Cost push inflation occurs when the costs of inputs such as wages and material costs increases. This leads to an increase in prices because producers will have to increase prices to make a profit.
In this scenario, material prices dropped instead of increasing. A negative cost-push inflation will therefore happen.
b. This will lead to a shift right in the Phillips curve to reflect that inflation has fallen. It will increase the output gap between Potential and Actual GDP because a lower inflation means more unemployment which means the economy is shrinking.
The black dot will shift right to (0, -2)
Bank reconciliations
Answers
Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Meaning:
A bank statement is a list of all transactions for a bank account over a set period, usually monthly. The statement includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period.
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line
