Answer:
a. $392, 265
Explanation:
Given that:
i. Purchasing department, overhead allocation rate is $77 per purchase order.
ii. Assembly department, overhead allocation rate is $5 per part.
iii. Packaging department, overhead allocation rate is $4 per unit.
iv. Direct material cost is $70 per unit.
v. Each stereo has 50 parts.
Total parts required = 1200 x 50
= 60000
vi. 45 purchase order was required for 1200 stereos.
Thus:
i. $77 x 45 = $3465
ii. $5 x 60000 = $300000
iii. $4 x 1200 = $4800
iv. $70 x 1200 = $84000
Therefore,
total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000
= $392, 265
Sidewinder, Inc., has sales of $634,000, costs of $328,000, depreciation expense of $73,000, interest expense of $38,000, and a
Mazyrski [523]
Answer:
$154,050
Explanation:
The computation of the net income for the firm is shown below:
Sales $634,000
Less: costs -$328,000
Less: depreciation -$73,000
EBIT -$233,000
Less: interest -$38,000
EBT 195,000
Less: tax(195,000 × 21%) -$40,950
Net income $154,050
We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered
Answer:
D) No impact on the accounting equation.
Explanation:
- Nothing would happen since the amount to be received would remain the same i-e $20,000, so there is no chance for increase in liabilities. Moreover, the there is no new services so that asset should be impacted.
- What there has been done is just classifying the payment which the Delta thought that they would receive earlier, but now it is being realized that it will take long, so just to not make any mistake or confusion for future this was done.
Taxable Income.
I hope this helps! :)
Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.
Explanation:
When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.
This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.
It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.
