Answer: a. $600 Maintenance costs to Printing
$1,800 Maintenance costs to Developing
b. $2,480 Personnel costs to Printing
$9,920 Personnel costs to Developing
Explanation:
The Direct method as mentioned, allocates the service department costs to the Operating Departments.
Overheads from the Service Departments will not be allocated to the each other. In other words, Maintenance costs will not be allocated to Personnel and Vice Versa.
a. Allocating Maintenance Costs
Maintenance Cost is $2,400 which is to be allocated on the basis is machine hours.
Printing had 1,700 in Machine hours.
Their allocation is,
= 1,700 / ( total machine hours in the two operating Department) * $2,400
= 1,700 / (1,700 + 5,100) * 2,400
= 1,700 / 6,800 * 2,400
= $600 Maintenance costs to Printing
Developing had 5,100 machine hours
= 5,100 / 6,800 * 2,400
= $1,800 Maintenance costs to Developing
b. Allocating Personnel Costs
Maintenance Cost is $12,400 which is to be allocated on the basis is labour hours.
Printing had 700 in labor hours.
Their allocation is,
= 700 / ( total machine hours in the two operating Department) * $12,400
= 700 / ( 700 + 2,800) * 12,400
= 700 / 3,500 * 12,400
= $2,480 Personnel costs to Printing.
Developing had 2,800 machine hours.
= 2,800 / 3,500 * 12,400
= $9,920 Personnel costs to Developing
B. 10.09%
C. 3.68%
D. 3.76%
The standard deviation for monthly returns on company A is approximately 8.03%
To calculate the standard deviation of monthly returns, we need to first calculate the monthly returns for the three months of observation. We can do this by using the formula:
Monthly Return = (Current Price - Purchase Price) / Purchase Price
For July 1:
Monthly Return = ($45.19 - $40.97) / $40.97 = 0.103 or 10.3%
For August 1:
Monthly Return = ($49.75 - $40.97) / $40.97 = 0.2143 or 21.43%
For September 1:
Monthly Return = ($51.58 - $40.97) / $40.97 = 0.2589 or 25.89%
Next, we need to calculate the average monthly return (R) over the three months:
R = (10.3% + 21.43% + 25.89%) / 3 = 19.2%
Now, we can calculate the standard deviation (σ) of the monthly returns using the formula:
σ = √ [(Σ (Ri - R)^2) / (n - 1)]
where Ri is the return for the ith month, and n is the number of observations (in this case, n = 3).
Plugging in the values, we get:
σ = √[((10.3% - 19.2%)^2 + (21.43% - 19.2%)^2 + (25.89% - 19.2%)^2) / (3 - 1)]
= √[(94.86 + 3.62 + 35.37) / 2]
= √[(133.85) / 2]
= 8.03%
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B. $34
C. $45
D. $37
Answer:
$23.47
Explanation:
Given that,
Beginning Work in Process inventory = 1,200 units
Units started = 3,300 units
Ending Work in Process = 1,500 units
Total dollar cost = $88,000
Finished units:
= Beginning Work in Process inventory + Units started - Ending Work in Process
= 1,200 units + 3,300 units - 1,500 units
= 3,000 units
Equivalent units:
= (Finished units × 100%) + (Ending Work in Process × 50%)
= (3,000 × 100%) + (1,500 × 50%)
= 3,000 units + 750 units
= 3,750 units
Cost per equivalent whole unit:
= Total dollar cost ÷ Equivalent units
= $88,000 ÷ 3,750
= $23.47
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The incremental cost is ($10,360)
Explanation:
Analysis of total cost over the 5 year period
Retain Old Machine Buy New Machine
Variable / Incremental Operating
Costs
Old Machine 124,750
New Machine 97,800
Old Machine Book Value
Retain: Annual depreciation 8,430
Buy : Lump sum written off 8,430
Old Machine Disposal (8,490)
Purchase Cost of New Machine 25,080
Total Cost 133,180 122,820
The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)
Answer:
$192,880
Explanation:
We need to determine the balances for each of the items.
Work in process =(5,000/225,000*100) × 8,000
= 2.2% × 8,000
= 176
Finished goods = (20,000/225,000 *100) × 8,000
= 8.9% × 8,000
= 712
Cost of goods sold = (200,000/225,000 *100) × 8,000
= 88.9% × 8,000
= 7,120
Therefore, the revised ending balance for COGS would be ;
= 200,000 - 7,120
= $192,880
Answer:
y = 0.01x + 300
Explanation:
There are some missing information in the question that are shown below:
If it spends no money on advertising, it sells 300 units
For each $1,500 additional spent, an additional 15 units are sold.
Given that
Number of units sold in case of no money spending = 300 units
Additional money spent = $1,500
Additional units sold = 15 units
By considering the above information, the formula is presented below:
y = 0.01x + 300
where,
0.01X is come from
= (Number of units sold in case of no money spending + Additional units sold - Number of units sold in case of no money spending) ÷ (Additional money spent)
= (300 units + 15 units - 300 units) ÷ ($1,500)
= 0.01X
Answer:
Total expected cash collections for May are $24554
Explanation:
The May's cash collections will include collections from March's credit sales worth 15% of March's sales, collections for April's credit sales worth 25% of April's credit sales and collections worth 55% of t=May's credit sales. Thus the collections are,
Collection for March's sales = 12764 * 0.15 = $1914.6
Collection for April's sales = 27406 * 0.25 = $6851.5
Collection for May's sales = 28706 * 0.55 = $15788.3
Total expected cash collections for May = 1914.6 + 6851.5 + 15788.3
Total expected cash collections for May = $24554.4 rounded off to $24554