Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 51 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs per year: Fixed manufacturing overhead $441,000 Fixed selling and administrative expense $112,000 The absorption costing unit product cost is:________a. $65 per unit
b. $128 per unit
c. $63 per unit
d. $149 per unit

Answers

Answer 1
Answer:

Answer:

unitary absorption production cost= $128

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the unitary fixed manufacturing overhead:

Unitary fixed overhead= 441,000 / 7,000= $63

Now, the unitary absorption production cost:

unitary absorption production cost= 51 + 12 + 2 + 63

unitary absorption production cost= $128


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Define own-price elasticity of demand and explain how it is related to the demand curve. Provide four reasons why the demand for medical services is likely to be inelastic with respect to its price

Answers

Answer:



Explanation:

Own price elasticity of demand is the degree of the responsiveness of the quantity demanded due to some change in price, keeping other factor constant.  Price elasticity of demand on a linear demand curve will fall continuously as the curve slopes.

The four reasons are:

1. Medical aid is enivatble: Because medical services are a necessity for every human beings to live a healthy life, and if their is high change in price with respect to quantity demanded, person cannot ignore to take medical services in bad times or when seriously ill.

2. Comparing the actual size of the population, the number of doctors are compartively less.

3. The services of medical cannot be prolonged or postponed.

4. Love among people- One can be miser in food and clothing, but in diseases they have to take medical help and people will put in the whole money to save his closer one's life, this is the love we people have.

On July 23 of the current year, Dakota Mining Co. pays $6,165,600 for land estimated to contain 8,808,000 tons of recoverable ore. It installs machinery costing $1,849,680 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 488,500 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.Required:
Prepare entries to record the following:_______.
(a)To record the purchase of the land.
(b)To record the cost and installation of machinery.
(c) To record the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined.
(d)To record the first five months' depreciation on the machinery.

Answers

Answer:

a) July 23, 202x, purchase of land parcel (for mining purposes)

Dr Land and ore deposits 6,165,600

    Cr Cash 6,165,600

b) July 25, 202x, purchase and installation of mining machinery

Dr Machinery 1,849,680

    Cr Cash 1,849,680

c) December 31, 202x, depleting expense of ore deposits

Dr Depleting expense 341,917

    Cr Accumulated depletion: land and ore deposits 341,917

depleting expense = ($6,165,600 / 8,808,000 tons) x 488,500 tons = $341,917

d) December 31, 202x, depreciation expense of machinery

Dr Depreciation expense 102,585

    Cr Accumulated depreciation: machinery 102,585

depreciation expense = ($1,849,680 / 8,808,000 tons) x 488,500 tons = $102,585

A project that provides annual cash flows of $2,700 for nine years costs $8,800 today.Requirement 1:A. At a required return of 9 percent, what is the NPV of the project?
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?

Answers

Answer:

A. $8,187.17

B. $597.38

C. 30%

Explanation:

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000)   CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

9.00 %     i/yr

Shift NPV  $8.187.1666 or $8,187.17

Calculate the Net Present Value of the Project at the Required Return of 9%

The following is the calculation of NPV using a financial calculator :

($8,000)   CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

28.00 %     i/yr

Shift NPV  $597.3765 or $597.38

You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.

Use the Data given to find the Internal Rate of Return :

($8,000)   CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

$2,700     CFj

Shift IRR 30%

Referring to the average length of time modern justices sit on the Supreme Court, one law professor stated that, "Serving 25 years or more is too long in a democracy."What do you think he meant by that? 5. Do you support the current life appointment system or do you think justices should be.forced to retire? Explain your answer.

Answers

Answer:

No, I do not think justices should be forced to retire.

Explanation:

In order to ensure that the rule of law is maintained and every arm of government and it's institutions has no influences on justices, justices should not be forced to retire, as long as they are of good behavior and conduct.

Final answer:

The question pertains to the argument of whether the tenure of Supreme Court justices in a democracy should be capped or not. The professor's comment implies that long tenure might hinder dynamic legal interpretations in line with evolving societal values. Whether one supports the traditional life appointment system for justices or not depends on personal perspective.

Explanation:

The law professor's statement likely implies that with the evolving socially progressive landscape, having Supreme Court justices serve for 25 years or more could lead to stagnation in legal interpretation and decision making. Whether the current life appointment system for justices should be changed or not is a matter of personal opinion. Supporters of the current system often argue that it preserves judicial independence and protects the court from political pressures. On the other hand, those in favor of imposing retirement ages for justices often cite the need for fresh perspectives and dynamic legal interpretations that align with current societal values.

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Benson Manufacturing Company established the following standard price and cost data: Sales price $ 8.10 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,100 total Fixed selling and administrative cost $ 500 total Benson planned to produce and sell 2,400 units. Actual production and sales amounted to 2,700 units. Assume that the actual sales price is $7.80 per unit and that the actual variable cost is $4.25 per unit. The actual fixed manufacturing cost is $1,300, and the actual selling and administrative costs are $530. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (

Answers

Answer:

The flexible budget variances are attached.

Overall, the variance was favorable.  The actual results in net income produced a favorable variance of $275.

Explanation:

A budget variance is the difference between the actual amount and the budgeted.

It is favorable when the actual income is greater than the budgeted income or when the actual expense is less than the budgeted expense.  Income becomes favorable if more actual income had been generated than actually projected.  And if actual expense is more than budgeted, then the expense line item records unfavorable variance.

Variance analysis is always employed to gauge performance.  After analysis, the variances are investigated for course correction, as the case may be.  Favorable outcomes are encouraged while unfavorable outcomes are discouraged.

The beta of a security is calculated as: (_____ of a security’s return with the return on the market portfolio / _______).A. Variance; Covariance of the security returnB. Covariance; Standard deviation of the market returnC. Covariance; Variance of the market returnD. Variance; Covariance of the market returnE. Covariance; Variance of the security return

Answers

A security's beta is calculated by dividing the security's return covariance with the return on the market portfolio by the market return variance. As a result, choice (C) is the best way to respond.

What is the beta of security?

A stock's beta (β) value is a gauge of how volatile its returns are compared to those of the broader market. It is a crucial component of the Capital Asset Pricing Model and is utilized as a risk indicator (CAPM). A corporation with a higher beta has more risk as well as higher anticipated rewards.

One way to determine beta is to first divide the standard deviation of returns for the security by the standard deviation of returns for the benchmark. The correlation between the security's returns and the returns of the benchmark is multiplied by the resulting value.

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Answer:

Beta of a security is the covariance of the security return with the return on the market portfolio divided by variance of the market return.

The correct answer is C

Explanation:

Beta of a security is calculated as covariance (Ri,Rm) divided by Variance of the market return. Beta is used for measuring the systematic risk of a security.