Answer:
Indirect manufacturing cost= $22100
Explanation:
The following data is provided:
Direct materials $ 6.20
Direct labor $ 3.10
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 14,000
Sales commissions $ 1.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,500
A total of 6,000 units have been produced.
To find the indirect manufacturing cost: variable overhead plus fixed manufacturing overhead is calculated as 1.35 * 6000 + 14000 = $22100.
Answer: Apportionment
Explanation: Apportionment, also referred to as analogous estimating, is utilized when projects closely align with previous ones concerning features and costs. This allows for rapid estimation regarding project duration, cost, and features with minimal effort, accuracy, and reliance on historical data. The apportionment methodology is common in fairly standard projects with limited variation or customization.
Here are the instructions outlined below. Given the details: 1 Pound T-bone: Selling price ($7.95 per pound) is $7.95; Joint costs amount to $3.80; Profit per pound therefore is $4.15. Further processing incurs a cost of $0.55 per T-bone steak, resulting in a 6-ounce filet mignon and one 8-ounce New York cut. The filet can be sold for $12.00 per pound, while the New York cut is priced at $8.80 per pound. A) Filet mignon earns $12.00 per pound, so for 6 ounces: 0.375 x 12 = $4.50. New York cut earns $8.80 per pound: 0.5 x 8.80 = $4.40. The total sales from both cuts amount to $8.90, while total costs consist of $3.80 + $0.55 = $4.35, leaving a profit of $4.55. B) Further processing the T-bone steak yields an extra $0.40 in profit.
A) Accounting profits do not factor in implicit costs, only tangible or measurable expenses.
Hence, the present value of a $120,000 lease over three years at an interest rate of 5% with explicit maintenance costs of $40,000 is:
PV = [ FV/(1+r)^n ] - (Explicit Cost)
PV = 120000/(1.05^3) - (40000*3)
B) a similar calculation but including implicit costs...
PV = 120000/(1.05^3) - (40000*3) - (55000*3)
