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Altertech Inc. manufactures a product which contains a circuit board. The company has always purchased this circuit board from a supplier for $32 each. Altertech recently upgraded its own manufacturing capabilities and now has enough excess capacity to begin manufacturing the circuit board instead of buying it. The company prepared the following per unit cost projections of making the circuit board, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 110% of direct labor cost.
The required volume of output to produce the circuit boards will not require any incremental fixed overhead. Incremental variable overhead cost is $3 per circuit board. What is the effect on income if Altertech decides to make the circuit boards?
Compute the following variances and indicate whether the variance is favorable or unfavorable. 1. Direct material price variance, Direct materials quantity variance, Direct labor price variance, Direct labor quantity variance
Susco distributed two assets in a transaction that qualified as a redemption.One asset had an adjusted basis of $100,000 and a fair market of $135,000.
All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900. The total conversion costs for the period were:
Prepare the journal entries to record the pension expense and funding for the year.
mary has a three-stock portfolio and is interested in estimating its overall return next year. she has 25000 invested
After all bills for the party were paid, the total came to $2,315. Details are $575 for hotel room rental, $640 for food, $750 for entertainment, and $350 for decorations. 100 persons attended the party. What is the main reason for the unfavorable..
the level of inventory of a manufactured product has increased by 8000 units during a period. the following data are
If the high-low method is used, what is the monthly total cost equation?
in april of the current year steelman press company transferred ken sherm from its factory in louisiana to its plant in
The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)
use the information in brief exercise 25.2 to compute the roi for the pennsylvania factory using total assets and
Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on July 1, and had income applicable to common stock of $1,050,000 for the year ending December 31, 2010. Earnings per share of common stock for 2010 woul..
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