Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.
a. Fixed
b. Indirect

Answers

Answer 1

Answer:

Both :

a. Fixed  and,

b. Indirect

Explanation:

The depreciation expense on production machinery form part of the product or service cost.

The cost however, can not be traced to the product or service that is why it is an Indirect cost as opposed to the direct costs which can be traced directly on the product or service.

Straight line method charges a fixed amount of depreciation thus the depreciation is a fixed charge.


Related Questions

Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?

Answers

Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?

ANSWER:

Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.

If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.

Answer:

At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.

In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.

Explanation:

Q3) At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change in operating cash flow be

Answers

Answer:  18.6%

Explanation:

Degree of operating leverage =  % change in Operating cash flow / % change in output

% change in Output

= [tex]\frac{48,000 - 45,000}{45,000}[/tex]

= 6.7%

Degree of operating leverage =  % change in Operating cash flow / % change in output

2.79 = % change in Operating cash flow/ 6.7%

% change in Operating cash flow = 2.79 * 6.7%

% change in Operating cash flow = 18.6%

Wolverine Company financial statements included the effects of these errors: Reported Net Income for Year 1 was $20,000. Reported Net Income for Year 2 was $18,000. Indicate the error in 12/31/2 Retained Earnings:

Answers

Answer:

Net income year 2 = $21,300

Explanation:

I looked for the missing information and found this:

Year            Depreciation overstated         Prepaid expense omitted

1                              $2,500                                $2,000

2                             $4,000                                $2,700

If your question doesn't include the same values, just adjust the answer.

Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300

The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?
A) Data warehousing
B) strategic planning competitive marketing intelligence
D) customer relationship management
E) ethnographic research

Answers

Answer:

The answer is C. competitive marketing intelligence

Explanation:

Competitive marketing intelligence may be a powerful research-based method employed by a company to collect, analyze, and use information collected on competitors, economic conditions, customers etc to a achieve business's competitive advantage.

The information-gathering analysis process can help a corporation develop its strategy or identify competitive gaps. It identifies threats and opportunities within the business

A buyer and a seller enter into a real estate sales contract. Under the contract's terms, the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract do the buyer and seller have

Answers

Answer: Land Sales Contract

Explanation:

Land Sales contract are a way to buy a property for people who would otherwise be unable to buy one because they were unable to get a mortgage or are running low in funds.

It works by the buyer paying the seller a certain amount of money for a period of time according to an agreement. During this period of payment, the seller continues to hold the legal rights to the property and then passes it to the buyer when they are finished paying. In this scenario therefore, the seller effectively plays the role of a mortgage bank.  

Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?

Answers

Answer:

7.56%

Explanation:

Calculation for the required return for Smiling Elephant

Using this formula

Required return =D/P0

Where,

D=$6.10

P0=$80.65

Let plug in the formula

Required return =$6.10/$80.65

Required return =0.0756×100

Required return =7.56%

Therefore the Required return for Smiling Elephant Inc will be 7.56%

Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?

Answers

Answer:

$293,500

Explanation:

The computation of the amount pay in separation cost is shown below:

As there are 587 employees

but 10% are downsized

So, separation cost is

= Current employees × downsized percentage × received amount by workers

= 587 employees × 10% × $5,000

= $293,500

We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive

All of the following are assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of except? Homogenous customer needs worldwide People around the world are willing to sacrifice preferences for lower prices and higher quality Economies of scale can be obtained in production and marketing through supplying worldwide Lowering international synergy and cost via the value chain matrix

Answers

Answer: Lowering international synergy and cost via the value chain matrix

Explanation:

Theodore Levitt came up with some assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of which include;

On a global scale, customer needs are beginning to become homogeneous.People are willing to sacrifice their preferences for better quality products at a cheaper quality which gives Multinational Companies a chance to offer them better products than local producers due to their large sizes and Economies of scale.Having to supply the world can lead to Economies of scale in production and marketing due to the larger market.

Lowering international synergy and cost via the value chain matrix is not one of the assumptions espoused by Theodore Levitt and so is the correct answer.

ohnson, LLC’s bonds have exhibited a substantial trading volume in the past few years. Its bonds would be referred to a

Answers

Answer:

Seasonal issue

Explanation:

The seasoned issue or seasonal issue is that issue which is made for extra securities held from the company i.e established and it considered those securities who are already traded in the secondary market. The bond which are outstanding and traded in the secondary markets is known as seasoned issued

Since in the question it is mentioned that there is a substantial trading volume in the past few years so this represents the seasoned issue  

A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 3.0 per minute. In serving themselves, customers take about 14 seconds, exponentially distributed. a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer: 3 customers.

Explanation:

Given the following :

Arrival rate of customers = 3 customers per minute

Service time = 14 seconds

Then if service time is 14 seconds, the service rate per minute will be 60/14 = 4.29 = 4 (nearest whole number)

Service rate = 4 customers per minute.

Number of customers at coffee urn(Nc) :

Nc = (arrival rate) /(service rate - arrival rate)

Nc = (3) / (4 - 3)

Nc = 3 / 1

Nc = 3

Therefore, average number of customers expected at coffee urn = 3

Consider Figure 9.2 on page 205 of our textbook. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as the incumbent tries to break into the market by selling 4,000 units of output. Estimate from the graph what the new firm's average cost of producing output would be. If the incumbent continues to produce 6,000 units, how much output would be supplied to the market by the two firms? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn ?

Answers

Answer:

The 10,000 units of output that will be supplied by the two firms to the market.

Profit that each firm would earn will be higher than previous.

Explanation:

The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.

The 10,000 units of output will be supplied by the two firms to the market.

The profit that each firm would earn will be higher than the previous.

Calculation of the number of units and profits:

Here the firm sells 4,000 units at the price of $10 per unit. And, in the case when the output is increased to 6,000 units the price will increase to $11 per unit.

And, In the case when the new 6,000 units are produced along with the previous 4,000 units so the total output supplied by the two firms will be 10,000 units.

The supply of goods in the market should increase due to which the price will fall and the revenue for the firms will decline however they can benefit with sales volume and their profit can increase.

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. Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy. a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.

Answers

Answer:

Option, A , D, E = expansionary fiscal policy.

Option B = Contractionary fiscal policy

Option C = not a part of fiscal policy

Explanation:

The expansionary fiscal policy occurred when there is a decrease in taxes and an increase in government expenditure (spendings). While contractionary fiscal policy occurs when taxes are increased by the government and there is a fall or decrease in government spendings. Therefore, Option A, Option D, and Option E are part of the expansionary fiscal policy.

Option B is a contractionary fiscal policy. While option C is not a part of fiscal policy

he financial manager at Starbuck Industries is considering an investment that requires an initial outlay of ​$24,000 and is expected to produce cash inflows of ​$1,000 at the end of year​ 1, ​$5,000 at the end of years 2 and​ 3, $14,000 at the end of year​ 4, ​$9,000 at the end of year​ 5, and ​$7,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck​ Industries' proposed investment. b. Which of the approaches—future value or present value—do financial managers rely on most often for decision​ making? Why?

Answers

Answer:

Please check the attached image for the timeline image.

present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.

Explanation:

Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.

present value is the sum of discounted cash flows

Sales 22160 units Cash, beginning balance $34000 Selling and administrative (of which depreciation, $5,000) $53000 Required minimum cash balance $66480 If necessary, the company will borrow cash from a bank on the first day of March. Assume that the borrowing can be made in any (exact) amount, but bears interest at 3% per month. The March interest will be paid during subsequent months. Q: What is the closest amount of cash that must be borrowed on March 1 to cover all cash disbursements and to obtain the desired March 31 cash balance

Answers

Answer:

Loan taken:                           58,320

Explanation:

We add up the beginning cash with the receipts and subtract the expenses.

Then, we compare agaisnt the mnimum required balance

Beginning Cash   34,000

Cash Receipts

Sales                    22,160

Total cash form operations: 56,160

Cash disbursements

S&A expense (w/o depreciations) 48,000

Ending Cash from operations 8,160

Minimum Balance:               66,480  

Loan taken:                           58,320

Gullett Corporation had $26,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Answers

Answer:

debit to Raw Materials of $75,000

Explanation:

In this scenario, the journal entry to record the purchase of raw materials would include a debit to Raw Materials of $75,000. A debit is an entry recording a sum owed, listed on the left-hand side or column of an account. Therefore in accounting, since Gullet Corporation's purchase was for an "additional" $75,000 worth of raw material, they owe that money to the company and must make it up through sales that those materials should generate in the future. That is why it is recorded as a debit.

Bee Inc. is working on its cash budget for March. The budgeted beginning cash balance is $55,000. Budgeted cash receipts total $139,000 and budgeted cash disbursements total $134,000. The desired ending cash balance is $80,000. To attain its desired ending cash balance for March, the company needs to borrow:

Answers

Answer:

$20,000

Explanation:

The computation of the borrowed amount is shown below:

As we know that

Ending cash balance = beginning cash balance + cash receipts - cash disbursements + cash borrowings

$80,000 = $55,000 + $139,000 - $134,000 +cash borrowings

$80,000 = $194,000 - $134,000 + cash borrowings

So, the borrowing is $20,000

An investment earns 35% the first year, earns 40% the second year, and loses 37% the third year. The total compound return over the 3 years was ______. Multiple Choice 158.93% 19.07% 38.00% 6.36%

Answers

Answer:

19.07%

Explanation:

The computation of the total compound return over the 3 years is shown below:

= (1 + investment percentage earned in first year) × (1 +  investment percentage earned in second year)  × (1 +  investment percentage loss in second year)

= (1 + 0.35) × (1 + 0.40) × (1 - 0.37)

= 1.35 × 1.40 × 0.63

= 1.1907

= 19.07%

Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a(n):

Answers

Answer:

Reversionary interest

Explanation:

If Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a reversionary interest.

A reversionary interest can be defined as a property law (deed) which states that when a property such as a land transfer is used on a clause; “for so long as” or “on condition that."

Hence, once the interest of the benefactor comes to an end, the property reverts back to its original owner (grantor). It also gives the grantor's next of kin, successor or heir the power or right to take the property back in the future if promises are broken or the agreement comes to an end.

This ultimately implies that, if a property stated in the deed is not used or used, for certain purposes.

In this scenario, Larry owns a reversionary interest because he gifts a land to the school district, but in the deed he stated "for so long as the land is used for a school."

With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?

Answers

Answer:

Income will decrease by $2,000,000.

Explanation:

Giving the following information:

Advertising increase= $50,000,000

Units increase= 10,000 units

Unit contribution margin= $4,800

To calculate the total effect on income, we need to use the following formula:

Effect on income= total contribution margin - increase in fixed costs

Effect on income= 10,000*4,800 - 50,000,000

Effect on income= $2,000,000 decrease

Income will decrease by $2,000,000.

Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.

Answers

Answer:

Date             Account titles and explanation        Debit      Credit

30/09/2020  Depreciation expense                     $5,450

                     Accumulated depreciation                              $5,480

                     (To record depreciation expense)

30/09/2020    Accumulated depreciation            $47,550

                        Cash                                                $20,100

                        Loss on sale of equipment            $5,230

                        Equipment                                                         $72,880

                        (To record sale of equipment)

A company's flexible budget for 13,200 units of production showed sales, $54,120; variable costs, $21,120; and fixed costs, $18,000. The operating income expected if the company produces and sells 19,600 units is:

Answers

Answer:

Net income= $31,000

Explanation:

Giving the following information:

Production= 13,200

Sales= 54,120

Variable costs= $21,120

Fixed costs= $18,000

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= total contribution margin/number of units

Unitary contribution margin= (54,120 - 21,120) / 13,200

Unitary contribution margin= $2.5

Now, for 19,600 units:

Total contribution margin= 2.5*19,600= 49,000

Fixed costs= (18,000)

Net income= 31,000

The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their

Answers

Answer:

ghjkgg 9ycutzts5a64sts64d6ix74s

The decision of the Ceo of Cell Inc. microbilogy research laboratory to outsource some production in developing countries so that maximum output and fast deliveries can be expected to customers and also by the company can focus on various other factors affecting the business.

What is a research laboratory?

The scientific lab where the experiments or products research are made so that new products can be made or existing can be replaced in chemical biological or physical aspects.

What is outsourcing?

The practice which is done by an individual or an organization by using third party to carry their business activities like performing tasks giving services to customers etc.

What is third party?

The company or an individual which comes in between two aspects and try to manage or solve the issue or give solutions

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Crane Company has gathered the following information.
Units in beginning work in process 0
Units started into production37,300
Units in ending work in process8,200
Percent complete in ending work in process:
Conversion costs40%
Materials100%
Costs incurred:
Direct materials$78,330
Direct labor$66,500
Overhead$105,114
1. Compute equivalent units of production for materials and for conversion costs.
Materials
Conversion Costs
The equivalent units of production
2. Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$
$
3. Show the assignment of costs to units transferred out and in process.
Units transferred out $
Units in ending work in process

Answers

Answer:

1. Compute equivalent units of production for materials and for conversion costs

Equivalent units of Materials: (Units in Beginning Work in process + Units started into production - Units in ending work in process) + Units in ending work in process

= (0 + 37,300 - 8,200) + 8,200

= 37,300

Equivalent units of conversion costs : (Units in Beginning Work in process + Units started into production - Units in ending work in process) + (Units in ending work in process * 40%)

= (0 + 37,300 - 8,200) + (8,200 * 40%)

=29,100 + 3,280

= 32,380

2. Determine the unit costs of production

Unit costs of materials = Direct materials / Equivalent units of Materials

= $78,330 / 37,300

= $2.1

Unit costs of conversion costs = (Direct labor + Overhead) / Equivalent units of conversion costs

= ($66,500 + $105,114) / 32,380

= $171,614 / 32,380

= $5.3

3. Show the assignment of costs to units transferred out and in process

Units ending work in process = Materials + Conversion costs

where, Materials = 8,200 * $2.1 = $8,202

Conversion costs = 3,281 * $5.3 = $17,389

( 8,200 * 40%)

Units ending work in process = $8,202 + $17,389

= $25,591

Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.

Answers

Answer:

Production budget for October and November

                                                                October            November

                                                                 cushions             cushions

Budgeted Sales                                         13,000                15,000

Add Budgeted Closing Inventory              3,000                  3,600

Total Production needed                          16,000                18,600

Less Budgeted Opening Inventory          (2,600)                (3,000)

Production Budget                                    13,400                15,600

Explanation:

A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.

Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect: Multiple Choice Jackie's income, as she now needs to buy Converse and will have less to spend on other goods. Jackie's preferences for shoes, since she feels as though she needs them now. Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular. the prices of related goods, since other shoes will be less popular and cost less now.

Answers

Answer:

Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.

Explanation:

Jackie is a fashionista and so she would respond to trends. Since everyone around her is wearing converse, she would want to wear converses too. so her income would be affected as it would be reduced as she would buy the converse.

Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income should increase by about:

Answers

Answer:

21.9%

Explanation:

Given that

Operating leverage = 7.3

Increase in sales  = 3%

According to the given situation, the computation of net operating income is shown below:-

Increase in operating income  = Operating leverage × Increase in sales

= 7.3 × 3 %

= 21.9%

Therefore for computing the increase in operating income we simply applied the above formula.

Activity-based costing for a service company
Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:

Activity Activity Rate
Room and meals $240 per day
Radiology $215 per image
Pharmacy $50 per physician order
Chemistry lab $80 per test
Operating room $1,000 per operating room hour
The activity usage information associated with the two patients is as follows:
Patient Putin Patient Umit
Number of days 6 days 4 days
Number of images 4 images 3 images
Number of physician orders 6 orders 2 orders
Number of tests 5 tests 4 tests
Number of operating room hours8 hours 4 hours
Complete the Activity Table:
A. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.
B. Use the activity rates in (A) to determine the total and per-unit activity costs associated with patient.

Answers

Answer:

A.

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

B.

Patient Putin

Unit  = $1,585

Total = $10,640

Patient Umit

Unit  = $1,585

Total = $6,025

Explanation:

Activity rate = Total Overhead Cost / Total Activity

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

Patient Putin

                               Unit       Total

Room and meals   $240      $1,440

Radiology               $215        $860

Pharmacy                 $50       $300

Chemistry lab          $80          $40

Operating room  $1,000    $8,000

Total                     $1,585   $10,640

Patient Umit

                               Unit       Total

Room and meals   $240       $960

Radiology               $215       $645

Pharmacy                 $50       $100

Chemistry lab          $80       $320

Operating room  $1,000    $4,000

Total                     $1,585   $6,025

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Mercon Wurcon
Direct materials cost per unit $ 9.00 $ 7.00
Direct labor cost per unit $15.00 $ 17.00
Direct labor-hours per unit 0.40 4.80
Number of units produced 4,000 8,000
These products are customized to some degree for specific customers.
Required:
1. The company's manufacturing overhead costs for the year are expected to be $1,600,000. Using the company's conventional costing system, compute the unit product costs for the two products.
2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:
Mercon Wurcon Total
Engineering design time (in hours) 8,000 8,000 16,000
Compute the unit product costs for the two products using the proposed ABC system.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Mercon Wurcon

Direct materials cost per unit $ 9.00 $ 7.00

Direct labor cost per unit $15.00 $ 17.00

Direct labor-hours per unit 0.40 4.80

Number of units produced 4,000 8,000

A. First, we need to calculate the predetermined overhead rate:

Total direct labor hours= 0.4*4,000 + 4.8*8,000= 40,000

Overhead= 1,600,000

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,600,000/40,000

Predetermined manufacturing overhead rate= $40 per direct labor hour

Now, we can determine the unitary product cost.

Mercon= 9 + 15 + 40*0.4= $37

Wurcon= 7 + 17 + 4.8*40= $216

B.

Mercon Wurcon Total

Engineering design time (in hours) 8,000 8,000 16,000

Now, we have two different allocation rates:

Direct-labor hours= 800,000/40,000= $20 per direct labor hour

Engineer desing= 800,000/16,000= $50 per engineer desing hour

Finally, we can determine the unitary product cost:

Engineer design per unit:

Mercon= 8,000/4,000= 2

Wurcon= 8,000/8,000= 1

Mercon= 9 + 15 + (20*0.4 + 50*2) = $132

Wurcon= 7 + 17 + (20*4.8 + 50*1)= $170

On July 1, 2021, a company loans one of its employees $20,000 and accepts a ten-month, 9% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022

Answers

Answer:

Interest in 2021=900

Interest in 2022=600

Explanation:

Calculatation of the amount of interest revenue the company will recognize in 2021 2022

Month in 2021 - July To December

Interest in 2021 = 20,000*9%*6/12

Interest in 2021=900

Month in 2022 - January To April

Interest in 2022 = 20,000*9%*4/12

Interest in 2022=600

Therefore the amount of interest revenue the company will recognize in 2021 will be 900 while 2022 will be 600

Answer:

2021:900

2022:600

Explanation:

Month in 2021 - July To December  

Interest in 2021 = 20,000x0.0%x(6/12)  

Interest in 2021=900  

Month in 2022 - January To April  

Interest in 2022 = 20,000x0.09x(4/12)  

Interest in 2022=600  

Therefore the answer for 2021 will be 900 and for 2022 will be 600

Parton and Sons is a law firm that uses activity-based costing. Classify these activities as value-added or non-value-added:

a. Taking appointments
b. Reception
c. Meeting with clients
d. Bookkeeping
e. Court time
f. Meeting with opposing attorneys
g. Billing
h. Advertising

Answers

Answer:

The answer is:

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

Explanation:

In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.

A - Non-value-added

B - Non-value-added

C- Value-added

D- Non-value-added

E - Value-added

F - Value-added

G - Non-value-added

H- Non-value-added

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