BUSINESS COLLEGE

If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75.True/False

Answers

Answer 1

Answer:

Answer:

given statement is false

Explanation:

given data

average cost of transporting on train = $75

solution

when average cost of transporting as train then a passenger travel from Chicago to St. Louis its cost is $75

so it mean we can say that the overall price by travel by train to be charged from all the customers should be average cost = $75

and railroad allow any passenger to ride for less than $75 is false

so given statement is false

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Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balances at the beginning and end of the year were $600k and $700k, respectively. The receivables turnover was

Answers

Answer:

Accounts Receivables Turnover Ratio = $(6,500,000)/(650,000)$ = 10 times.

Explanation:

Accounts Receivables Turnover ratio = $(Net \:Credit \: Sales)/(Average \: Receivables)$

Here Net Credit Sales = $6.5 million

Accounts Receivables Opening Balance = $600,000

Accounts Receivables Closing Balance = $700,000

Average Accounts Receivable Balance = $(600,000 \:+ 700,000)/(2) = 650,000$

Accounts Receivables Turnover Ratio = $(6,500,000)/(650,000)$ = 10 times.

This shows that accounts receivables are on an average 1/10th of credit sales.

Final Answer

Accounts Receivables Turnover Ratio = $(6,500,000)/(650,000)$ = 10 times.

Compute the amount of raw materials used during August if $39,000 of raw materials were purchased during the month and the inventories were as follows:Col1 Inventories Raw materials Work in process Finished goods
Col2 Balance August 1 $3,500 $12,000 $18,000
Col3 Balance August 31 $3,600 $10,000 $16,000

Answers

Answer:

$38,900

Explanation:

The formula and the computation of raw material used is shown below:

Raw material used = Beginning balance of raw material + purchase made during the year - ending balance of raw material

= $3,500 + $39,000 - $3,600

= $38,900

Simply we added the purchased amount and deduct the ending balance of raw material to the beginning balance of raw material so that the accurate amount can come

A company estimates the following manufacturing costs for the next period: direct labor, $536,000; direct materials, $211,000; and factory overhead, $119,000. Required:
1. Compute its predetermined overhead rate as a percent of direct labor.
2. Compute its overhead cost as a percent of direct materials.

Answers

Answer:

(1) 22%

(2) 56%

Explanation:

Given that,

Direct labor = $536,000;

Direct materials = $211,000;

Factory overhead = $119,000

(1) Predetermined overhead rate as a percent of direct labor is simply calculated by dividing the factory overhead by its direct labor cost.

Predetermined overhead rate as a percent of direct labor:

= (Factory overhead ÷ Direct labor) × 100

= ($119,000 ÷ $536,000) × 100

= 0.22 × 100

= 22%

(2) Predetermined overhead rate as a percent of direct materials is simply calculated by dividing the factory overhead by its direct material cost.

Predetermined overhead rate as a percent of direct material:

= (Factory overhead ÷ Direct material) × 100

= ($119,000 ÷ $211,000) × 100

= 0.56 × 100

= 56%

Wellington Recycling recycles newsprint, cardboard, and so forth, into received packaging materials. For the coming year, Wellington estimates total manufacturing overhead to be $359,640. The managers are not sure if direct labor hours (estimated to be 9,990) or machine hours (estimated to be 7,982 hours) is the best allocation base to use for allocating manufacturing overhead. Wellington bids for jobs a 31 % markup over total manufacturing cost.After the new fiscal year began, Hollings Paper Supply asked Wellington Recycling to bid for a job that will take 1 ,975 machine hours and t ,700 direct labor hours to produce. The direct labor cost this will be $10 per hour, and the direct materials will total S25,500.

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.

Answers

To calculate the total Job Cost, it is required to add direct Materials with direct Labor and applied overhead.

Computation total job cost

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

Then = Direct material + direct labor + manufacturing overhead
Now, = $25,500 + 1,700 × $10 + $1,700 × $36
After that = $25,500 + $17,000 + $61,200
Then = $103,700

Now the bid price is

Then = Job cost - markup profit
Now = $103,700 - $103,700 × 31%
Then = $103,700 - $32,147
Then = $135,847

Find out more information about Total job cost here:

brainly.com/question/26415931

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

What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem c. Communicating compliance d. Blaming the customer Apologizing

Answers

Answer:

The correct answers are letters "A", "B", and "C": Explaining the resolution to the problem; Preventing a recurrence of the problem; Communicating compliance.

Explanation:

Adjustment letters are communications with legal nature from companies to customers who filed a claim. The main purpose of the letter is to politely inform the client that the claim was received, what steps were taken to analyze the situation, what is the final resolution after the study and what will be done as a result. The ultimate goal of the adjustment letter is to keep a good relationship with the customer so they can continue doing business.

Final answer:

An adjustment letter should focus on explaining the resolution to the problem, preventing a recurrence of the issue, communicating compliance, and issuing an apology to the customer.

Explanation:

An adjustment letter should focus on several key elements to ensure effective communication and customer satisfaction. These include:

Explaining the resolution to the problem: The letter should clearly state what actions have been or will be taken to solve the issue. This is to reassure the customer that their issue is being handled properly.
Preventing a recurrence of the problem: The letter should detail the steps that are taken by the business in order not to let the issue occur again in the future, thereby showing concern for customer experience.
Communicating compliance: This involves ensuring that all the procedures, policies and regulatory requirements have been complied with, by apprising the customer about the same in detail.
Apologizing: An important part of an adjustment letter is an apology to the customer for the inconvenience they've experienced. The apology should sound sincere and indicate that the business values the customer.

The focus of the letter should never be blaming the customer. Rather, it should be centered around finding a resolution and preventing the recurrence of the problem.