Required:
Compute the total job cost and price if Wellington decided to use direct labor hours as the manufacturing overhead allocation base for the year.
To calculate the total Job Cost, it is required to add direct Materials with direct Labor and applied overhead.
Although when before that first determine the predetermined overhead cost which is
Then = Estimated total manufacturing cost ÷ estimated labor hours
Then = $359,640 ÷ $9,990
After that = $36 per hour
Now the total cost is
Now the bid price is
Find out more information about Total job cost here:
Answer and Explanation:
The computation is shown below:
But before that first determine the predetermined overhead cost which is
= Estimated total manufacturing cost ÷ estimated labor hours
= $359,640 ÷ $9,990
= $36 per hour
Now the total cost is
= Direct material + direct labor + manufacturing overhead
= $25,500 + 1,700 × $10 + $1,700 × $36
= $25,500 + $17,000 + $61,200
= $103,700
Now the bid price is
= Job cost - markup profit
= $103,700 - $103,700 × 31%
= $103,700 - $32,147
= $135,847
Options:
a. 14.58%
b. 12.83%
c. 15.46%
d. 16.33%
e. 16.92%
Answer:
Correct option is A.
14.58%
Explanation:
After-tax yield = pre-tax yield x (1- marginal rate)
and Taxable-equivalent yield = tax-exempt yield / (1- marginal tax rate)
Hence Taxable-equivalent yield =.105/(1-.28)
=.105/.72=.14583333
=14.58 %
B. Stockholders do not have the power to bind the corporation to contracts.
C. It has a continuous life.
D. Transfer of ownership rights among owners generally does not impact equity.
E. Compared to other forms of organization- capital (financing) is more difficult to accumulate.
F. Generally there is no double taxation on corporate income that is distributed to owners.
G. It is not a separate legal entity from its owners.
Answer:
1. Directors oversee its business affairs
This statement is true. Infact in an organization there are more than 1 director, generally 1 director for each department. So yes they look after business affairs
2. Ownership is usually transferred readily
This statement is true. Even in the case of public company, shares traded will take 2 to 5 business days to settle. However once the trade is done, ownership is considered transferred.
3. This is true. Stockholders have voting rights in rather bigger events such as acquisition, merger etc but not an day to day activities such as contracts.
4. Any corporation is established to continue forever. This is true.
5. This is false. Generally a corporate gets financing easily compared to other form of financing.
6. Income distributed to owners is taxed again as personal income. And income distributed is an after tax income from organization. So double taxation exist. This is false.
7. Assets of the corporation are collatarized for debt and not owner assets. So Owner is not liable. This is false.
Answer:
Each firm sets it price equal to its average total cost.
Explanation:
In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :
1) manufacturers of identical products. . .
Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .
2) the firm has a small market share that will not affect prices. . .
No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices
3)Market where there are many buyers and sellers. . .
The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.
4)There is no obstacle to entering and leaving the market. . .
That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.
5)Perfect information. . .
Every market participant knows the prices, quality and production methods.
6) Zero transaction costs...
Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .
7) Maximizing profits. . .
In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.
As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.
Answer:
Overhead= $12,420
Explanation:
Giving the following information:
Wolf Company used $5,940 of indirect raw materials and $6,480 of indirect factory labor during the period.
Factory overhead costs are the costs that can't be directly assigned to a product, service or job. This is why companies assigned overhead using manufacturing overhead rates.
In this case, the overhead is the sum if indirect material and indirect labor:
Overhead= 5,940 + 6,480= $12,420
Answer:
The Money supply will decrease by $4,500
Explanation:
What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.
Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.
Hence, you can easily calculate the effect by using the simple money multiplier.