 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
accounting questions answers
every year, mother company purchases 8000 units of a part that it needs to produce its prodcut. The supplier notified Mother Company that a price increase will take effect shortly, which will bring the price of the part to $25.00 each. Mother company has an idle facility and considers using it to produce the part. If they produce the part the cost of the needed 8,000 units will be
direct material $17,500 direct labor $30,000 indirect production costs-variable $14,000 indirect production costs-Fixed $33,500 The idle facility could also be rented out at an annual rent of $99,000. All the fixed indirect production costs are avoidable. LIST THE ALTERNATIVES THE COMPANY HAS? WHICH OF THE ALTERNATIVES IS THE BEST AND WHY? |
||||
Check out some similar questions!
What does it mean to calculate the funding levels and capital gains based on the company's annual report?
The company incurs a payroll payable of $645 per weekday of operations. The mondays of January are the 3rd, 10th, 17th, 24th, and the 31st. Paydays are every other Friday with paydays of January 7th & 21st and February 4th for the two weeks ending that date. The Friday, January 21st payday is...
Im new to this so I didn't ask my question very clearly. The company pays for medical insurance for owners. I have had it on the expense side of P & L but was told by CPA that I need to classify it as a non-deductible expense. I don't know how to do that. Im using Quickbooks. Do I keep it on...
u09a1 Budget Variance Analysis For the second quarter in a row, profits are down at Waterfall division. - Division Management budgeted $250,000 in profits for the 2nd quarter - but actual results were only $197,000 in profits. - The division management insists that the budgets were...
I bought a timeshare five years ago for $17,000. I sold it last year for $8,000. May I write the loss of $9,000 off my taxes entirely or do I have to take the loss in increments?
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
