Describe the effect on income

Assignment Help Finance Basics
Reference no: EM13304656

The Densain Water plant pottles purified and favored waters in a variety of sizes (20, 36, 48, and 64 ounces) for sale thru vending machines and retail stores. Volume is measured as bottled ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million and variable manufacturing overhead is projected at $0.005 per bottled ounce . Projected volume in the plant next yeat is 200 million ounces. Actual volume for the year accumulated to 210 million ounces and total manufacturing overhead incurrec (both fixed and variable) was $2.85 million.

A) Calculate the Densian Naples plant overhead rate.
B) How much overhead was absorbed to products in the Naples plant?
C) Calculate the Densian Naples plant's over-or underabsorbed overhead.
D) Describe the effect on income when the over-or underabsorbed overhead calculated in (c) is written off to cost of goods sold.

 

Reference no: EM13304656

Questions Cloud

What is the lease worth today : What is the lease worth Today? As one of J & B's analysts, what is your recommendation as to when the company should begin drilling?
Determine the vertical support forces : A uniform steel beam has a mass of 2070 kg. On it is resting half of an identical beam, What are the vertical support forces
What type of transformer is needed to reduce the voltage : We all know that your homes have primary voltage Vp 120V that comes to them, What type of transformer is needed to reduce the voltage
What is stan realized gain on the sale : How would your answer to Part a. change, if at all, if the FMV of the gift property was $85,000 as of the date of the gift.
Describe the effect on income : Describe the effect on income when the over-or underabsorbed overhead calculated in (c) is written off to cost of goods sold.
What is the amplitude of the ossilation : An air-track glider is attached to a spring. The glider is pulled to the right and released from rest att = 0. what is the amplitude of the ossilation
Calculate the volatility of a portfolio : Using the data in the following table, and the fact that the correlation of A and B is .00073, calculate the volatility (standard deviation) of a portfolio that is 60% invested in stock A and 40% invested in stock B.
What is the velocity when it reaches the bottom : A 2kg uniform cyclinder is released at the top of a 1.53 m 11 degree incline. What is the velocity when it reaches the bottom
What is the maximum debt ratio the firm can use : It can borrow at a rate of 7.5%, but the bank requires it to have a TIE of at least 4.0, and if the TIE falls below this level the bank will call in the loan and the firm will go bankrupt. What is the maximum debt ratio the firm can use?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the value per share of the company stock

The required rate of return on the stock, rs, is 17%. What is the value per share of the company's stock? Round your answer to the nearest cent.

  Examining the issue of accounting methods

In a graph depicting stock value changes over time in reaction to announcements providing new information, 3-possible patterns exist. In a "bubble" pattern there is a sharp increase at announcement followed by a gradual increase followed by a gradual..

  Determine the effective rate on bank loan

Bosworth Petroleum requires $500,000 to take a cash discount of 2/10 net 70. A banker will land money for sixty days at an interest cost of $8,100.

  What is the break-even level of earnings before interest

What is the break-even level of earnings before interest and taxes between these two capital structure options?

  What will the market price of the security

The market price of a security is $55. Its expected rate of return is 9.26%. The risk-free rate is 4.26%, and the market risk premium is 5.26%. Assume the stock is expected to pay a constant dividend in perpetuity.

  Find what is sales revenue under the worst case scenario

The sales price is estimated at $750 per unit, plus or minus 3 percent and find what is the sales revenue under the worst case scenario?

  What would your required rate of return be on common stocks

What would your required rate of return be on common stocks if you wanted a 5 percent risk premium to own common stocks given what you know from problem 2? If common stock investors became more risk averse, what would happen to the required rate of r..

  What is the tie ratio

The H.R. picket corp has 500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are 2 million, its average tax rate is 30% and its profit margin is 5%. what is the TIE ratio?

  What amount should be used as the initial cash flow

The company now wants to build a new retail store on the site. The building cost is estimated at $1,100,000. What amount should be used as the initial cash flow for this building project?

  Three key inputs to valuation model

What are three key inputs to the valuation model? How would you find out the valuation of the asset?

  Find the amount financed

Jill Walsh purchased a bedroom set for a cash price of $3,920. The down payment is $392, and the monthly installment payment is $176 for 24 months. Find (a) the amount financed, (b) the finance charge, and (c) the deferred payment price.

  What price should be charged in orger to maximize profits

If fixed costs are 100,000 and the following chart represents the demand at various prices, what price should be charged in orger to maximize profits?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd