Answer:
Instructions are below.
Explanation:
Giving the following information:
handling materials $625,000
Inspecting product $900,800
Processing purchase orders $105,000
Paying suppliers $175,000
Ensuring the factory $300,000
Designing packaging $75,000
Total overhead= $2,180,800
First, we need to calculate the plantwide predetermined overhead rate:
Estimated direct-labor hours= 125,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,180,800/125,000
Predetermined manufacturing overhead rate= $17.45 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe= 2,500*17.45= $43,625
Basic= 6,000*17.45= $104,700
1. Calculate the percent change in operating income expected.___ %
2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1. $___
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales= 5,000 units
Selling price= $75
The unit variable cost= $45
Total fixed cost equals= $49,500
Operating income at 5,000 units sold is $100,500.
Degree of operating leverage= 1.5
Now Head-First expects to increase sales by 10% next year.
1) % Change on income= ?
We know that the degree of operating leverage is calculated by the following formula:
degree of operating leverage= %change in income/ %change in sales
1.5= %change in income/0.10
0.15= %change in income
15%= %change in income
2) Net operating income
Sales= 5,500*75= 412,500
Total variable cost= 5,500*45= (247,500)
Contribution margin= 165,000
Fixed costs= (49,500)
Net operating income= 115,500
Change in income= (115,500 - 100,500)/100,500= 0.1493= 14.93%
Answer:
$141 million.
Explanation:
Given: Export= $200 million.
Import= $160 million.
Foreign aid received= $80 million
Payment to foreign citizen= $15 million
Earning from abroad= $36.
Now, computing current account balance.
Total current account=
X- export
M-Import
NI-Net income
NT-Net current transfer.
Net income=
⇒ Net Income=
∴ Net Income (NI)= $21 million.
Net Transfer (NT)= $80 million.
Current account=
∴ Current account balance is $141 million.
Answer:
The operating income will increase by $13,000.
Explanation:
Giving the following information:
Sales revenue
Total= $490,000
Luxury= $360,000
Sporty= $130,000
Variable expenses:
Total= $355,000
Luxury= $235,000
Sporty= $120,000
Contribution margin
Total= $135,000
Luxury= $125,000
Sporty= $10,000
Fixed expenses:
Total= $78,000
Luxury= $39,000
Sporty= $39,000
Operating income (loss):
Total= $57,000
Luxury= $86,000
Sporty= $(29,000)
New Income Statement:
Sales= 360,000
Variable costs= 235,000 (-)
Contribution margin= 125,000
Fixed costs= 39,000 + 16,000= 55,000
Operating income= 70,000
The operating income will increase by $13,000.
Answer:
The expected January 31 Accounts Payable balance is $6,590
Explanation:
The December Accounts Payable balance is $7,900 - this is the 50% purchase amount in December and will be paid in January.
In January, Fortune Company will pay 50% purchase amount in December and 50% purchase amount in January.
Expected payment = $7,900 + 50% x $13,180 = $14,490
At January 31, the expected Accounts Payable balance:
$13,180 x 50% = $6,590
The expected Accounts Payable balance for Fortune Company at the end of January is $10,540, taking into account the payables carried over from December and half of January's purchases.
The question is regarding the calculation of the expected Accounts Payable balance at the end of January for Fortune Company. The company's payment schedule shows a split of 50% payment in the month of purchase and 50% in the following month. To compute the January 31 Accounts Payable, we need to consider the December Accounts Payable which is to be paid in January (50% of $7,900 = $3,950), and half of January's purchase ($13,180) which will amount to $6,590. Hence the expected January 31 Accounts Payable is: $3,950 (December's payable) + $6,590 (January's payable) = $10,540.
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The following information should be considered:
Learn more: brainly.com/question/17429689
Answer:
1. Is it an order outside normal market.
2.other orders at the going price.
Explanation:
Decision making in managerial accounting should focus on both the quantitative (dollars) and qualitative (other factors) effects of a decision.
Kitchens Sales Inc. should also consider if it is an order outside the normal market for cherry cabinets.Reducing prices in Normal Market in an attempt to unload spare capacity may lead to a fall in market price.
Also they should consider if accepting the special order may prevent company from accepting other orders that may be obtained during the period at the going price.
Machine B: The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $9,800 salvage value remaining at the end of that time period.
Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(1) The journal entry to record its purchase on January 1, 2017.
(2) The journal entry to record annual depreciation at December 31, 2017.
Answer:
Please see the solution below:
Explanation:
Machine A:
(i) Total Machine A Cost
Purchase Price = $37,500
Sales Tax = $3,600
Shipping Cost = $100
Insurance during shipping = $50
Installation and Testing Cost = $120
Total Machine A cost = $41,370
(ii) Depreciation
Recorded Cost = $41,370
Less: Salvage Value = $5,950
Useful Life = 5 years
Straight Line Method is used to find depreciation per yer will be:
Depreciation = $7,084
(1) The Journal Entry to record purchase of equipment (Machine A)
January 1, 2017
Dr. Equipment $41,370
Cr. Cash $41,370
(2) The Journal Entry to record annual depreciation (Machine A)
December 3, 2017
Dr. Depreciation $7,084
Cr. Accumulated Depreciation - Equipment $7,084
The total cost of Machine A is recorded as $41,370. The depreciation expense for the year end 2017 is calculated to be $7,084.
The subject matter involves the calculation and recording of purchase and depreciation of assets, a core part of business accounting.
First, to figure out the cost of machine A, we add up the related costs to the purchase price: $37,500 + $3,600 + $100 + $50 + $120 = $41,370. The cost of lubricants is not included as it is an operational cost, not a purchase cost.
(1) Therefore, the journal entry on January 1, 2017, is Debit: Machinery (account title) for $41,370 which is the total cost of machine A.
To calculate annual depreciation, we use the straight-line method. Take the total cost of the machine ($41,370), subtract the salvage value ($5,950), and then divide by the useful life of the machine (5 years): ($41,370 - $5,950) / 5 = $7,084 (rounded to the nearest dollar).
(2) The journal entry on December 31, 2017, to record annual depreciation is Debit: Depreciation Expense for $7,084, and Credit: Accumulated Depreciation for $7,084.
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