The RST Company makes 38,000 parts to be used in its main products. The cost per part at this activity level is: Direct materials
$
6.50
Direct labor
$
6.60
Variable manufacturing overhead
$
3.75
Fixed manufacturing overhead
$
3.45
An outside supplier offered to supply RST Company this part at $18 per unit. If RST Company decides not to make the parts, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost. The annual financial advantage (disadvantage) for the company as a result of buying these parts from the outside supplier rather than making them internally would be:
($186,200)
($87,400)
($43,700)
$87,400
Answers
Answer:
($43,700)
Explanation:
38,000 units produced:
- Direct materials $6.50
- Direct labor $6.60
- Variable manufacturing overhead $3.75
- Fixed manufacturing overhead $3.45
- total cost per unit = $20.30
outside supplier offers parts at $18 per unit
fixed manufacturing overhead is unavoidable
Alternative 1 Alternative 2 Differential
keep producing buy amount
Prod. cost $771,400 $0 $771,400
Purchase cost $0 $684,000 ($684,000)
Unavoidable costs $0 $131,100 ($131,100)
total $771,400 $815,100 ($43,700)
The financial disadvantage of purchasing the parts from an outside vendor = ($43,700)
Related Questions
ndicate whether the following items are "Included in" or "Excluded from" gross income. a. During the year, that the taxpayer purchased stock as an investment which doubled in value. b. Amount an off-duty motorcycle police officer received for escorting a funeral procession. c. While his mother was in the hospital, the taxpayer sold some of her jewelry at a gain to help pay for the hospital bills. d. Child support payments received. e. A damage deposit the taxpayer recovered when he vacated the apartment he had rented. f. Interest received by the taxpayer on an investment in general purpose bonds issued by IBM. g. Amounts received by the taxpayer, a baseball "Hall of Famer," for autographing sports equipment (e.g., balls and gloves). h. Tips received by a bartender from patrons. (Taxpayer is paid a regular salary by the cocktail lounge that employs him.) i. Taxpayer sells his Super Bowl tickets for three times what he paid for them. j. Taxpayer receives a new BMW from his grandmother when he passes the CPA exam.
A movie ticket cost $0.5 in 1970. The CPI (1970) and the CPI (2011) was 38.8 and 218.8 respectively. How much money would you have needed in 2011 to buy a movie ticket?help please
According to the video, what do Financial Analysts analyze? Check all that apply.financial recordstravel distancesinsurance claimsa company's competitorsfraud
Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Which of the following are plausible as a result of this increase in the sales tax. Is this plausible? Explain.
Answers
Answer:
Entry to record service revenues performed but not yet billed (nor recorded).
Dr Accounts receivable (asset, balance sheet)
Cr Service revenue (revenue, income statement)
Entry to record janitorial expense incurred but not yet paid.
Dr Janitorial expense (expenses, income statement)
Cr Janitorial expenses payable (liability, balance sheet)
Entry to record rent expense incurred but not yet paid.
Dr Rent expense (expenses, income statement)
Cr Rent expenses payable (liability, balance sheet)
Entry to record interest expense incurred but not yet paid.
Dr interest expense (expenses, income statement)
Cr Interest expenses payable (liability, balance sheet)
Entry to record expiration of prepaid rent.
Dr Rent expense (expenses, income statement)
Cr Prepaid rent (asset, balance sheet)
Answer:
the numbering
Explanation:
EDGU 2021
Answers
Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
Principal $144,972.64
time 2 years
rate 0.07000
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
PV $310,952.00
time 17 years
rate 7% = 0.07
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?
The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
Find out more on annuities at brainly.com/question/5303391.
Answers
Final answer:
The question discusses inventory management at Jill's Job Shop. For Tegdiws, a reorder level is calculated based on the annual demand, lead time, and the fact that orders are placed as soon as this level is reached. Widgets are ordered every four weeks, so the ordering quantity is determined considering the holding cost and safety stock.
Explanation:
The question revolves around the concept of inventory management at Jill's Job Shop. Given the figures, we're looking at two factors here- reorder level for Tegdiws and fixed interval time for ordering Widgets. The primary consideration is to minimize holding costs while ensuring enough quantity is available to meet demand throughout the year.
For Tegdiws, the reorder level must be calculated to ensure that when the remaining quantity reaches this level, a new order is placed. This level is typically the amount necessary to meet demand during the lead time. Given an annual demand of 11,000 units, a lead time of 4 weeks, and a 52-week year, the reorder level for Tegdiws would be around 846 units.
On the other hand, Widgets are ordered every four weeks, so the quantity of each order should be calculated to meet the four-week demand while considering the holding cost and safety stock. With an Annual demand of 8,000 units and a 52-week year, the quantity for each order of Widgets would be approximately 615 units.
Learn more about Inventory Management here:
#SPJ2
Answer:
EOQ = √ 2DCo/H
D = Annual demand
Co = Ordering cost per order
H = Holding cost per item per annum
TEGDIWS
D = 11,000 units
C0 = $110
H = 10% x $15 = $1.5
EOQ = √2 x 11,000 x $110
$1.5
EOQ = 1,270 units
WIDGET
D = 8,000 units
Co = $10
H = 20% x $8 = $1.6
EOQ =√ 2 x 8,000 x $10
$1.6
EOQ = 316 units
Explanation:
EOQ is equal to the square root of 2 multiplied by annual demand and ordering cost divided by holding cost.
a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.
b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.
c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.
d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal
Answers
Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale
Explanation:
Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.
Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".
Answers
Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.
What is the term Unstructured Interview about?
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
Learn more about Unstructured Interview, refer to the link:
Answer:
Unstructured interview
Explanation:
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.
Answers
Answer:
Y = C+ I +G +NX
Explanation:
We know,
The national spending approach is also known as the expenditure approach. According to the expenditure approach, all the goods and services that make up the gross domestic product will be applied to individual consumption, investment, and government expenditure. It also modifies the net exports and imports of a country. Therefore, option A is the correct answer as the expenditure approach, Y = C+ I +G +NX.
Final answer:
The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M).
Explanation:
The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M). This equation includes consumption (C), investment (I), government spending (G), and net exports (X - M). Net exports are calculated by subtracting imports (M) from exports (X).
Learn more about GDP here:
#SPJ12