Reyes Corporation applies overhead using an actual costing approach. Budgeted factory overhead was $266,400, budgeted machine-ho

Answer:

The question is rephrased to include the options:

A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.

B. Average inventory exceeds half the quantity of production order.

C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.

D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.

E. All options are true.

The right answer is option B, "Average inventory is more than one-half of the production order quantity."

Explanation:

Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.

An average inventory will be less than half of the production order quantity.

The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.

This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.

Answer:

The correct option is A.

$14.38 per direct labor hour

Explanation:

If the planned direct labor time for December is 8,000 hours, the total budgeted factory overhead per direct labor hour is calculated as follows:

Total budgeted factory overhead for December= Variable Factory Overhead rate per labor hour * budgeted labor hours for December + Fixed Factory Overhead monthly cost

Total budgeted factory overhead for December = 5*8000 + 75000

Total budgeted factory overhead for December = $115,000

Total budgeted factory overhead per labor hour = Total budgeted factory overhead for December/budgeted direct labor hours for December

Total budgeted factory overhead per direct labor hour = 115000/8000

Total budgeted factory overhead per direct labor hour = 14.38

The cost of not attending class equates to the $15 that could have been earned from babysitting a neighbor's child.
Opportunity cost encompasses the benefits one sacrifices to pursue another option, specifically the opportunity with the greatest value, which in this case is the $15.

Businesses and non-profit organizations assist in producing the goods and services that shape our standard of living.

Explanation:

Businesses are essential in regulating our lives by providing employment and necessary goods and services for society. Quality of life encompasses support for educational institutions, healthcare services, sanitation, etc.

Non-profit organizations exist to fulfill objectives that extend beyond profit-making. Not every organization is profit-oriented; some focus on assisting those in need. Charities such as Habitat for Humanity and the American Cancer Society are examples of non-profit organizations. In the past two decades, both the number of employees and volunteers in non-profit organizations have grown rapidly.

Response:

The company must sell 5,708 units to reach financial break-even.

Explanation:

We transform the investment in fixed assets into an annuity:

PV 148,000

time 3 years

rate 0.15

C  $ 64,820.590

The amount above the annual fixed expense of 39,800 needs to increase by 21% to establish the pre-tax sales target.

The desired pre-tax contribution:

64,820.59 / 1.20 = 54,017.16

We also consider a depreciation aspect that provides a tax shield:

(148,000 / 3) * 21% = (10,360)

Next, let's compute the break-even point considering this sum:

39,800 + 54,017.16 - 10,360= 83,457.16‬ dollars

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83,457.16 / 14.62 = 5.708,42

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