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Question - The Reno Company manufactures part no.498 for use in its production line. The manufacturing costs per unit for 20,000 units of part no.498 are as follows;
Direct Materials P6
Direct Labor P30
Variable overhead 12
Fixed overhead allocated 16
Total P64
The Tray Corporation has offered to sell 20,000 units of part no.498 to Reno for P60 per unit. Reno will make the decision to buy the part from Tray if there is an overall savings of P25,000 for Reno. If Reno accepts Tray's offer, P9 per unit of the fixed overhead allocated would be totally eliminated. Furthermore, Reno has determined that the released facilities could be used to save relevant costs in the manufacture of part no. 575. What is the amount of relevant costs that would have to be saved by Reno using the released facilities in the manufacture of part no. 498 to have an overall saving of P25,000?
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2011. The provisions of the plan were not made retroactive to prior years.
Compute the balance in retained earnings at the end of the year if Frances Corporation pays a dividend of $2 per share on its common stock this year.
Tempura, Inc., is considering two projects. Project A requires an investment of $70,000. Estimated annual receipts for 20 years are $22,000.
ZARA International is a Spanish clothing and accessories retailer based in Arteixo
Calculate the amount of depreciation expense related to the computer system Hallmark will report on its income statement for the fiscal year ended June 30, 2009, for each scenario.
Abernathy Corporation was organized on January 1, 2012. Please prepare the journal entries to record the above transactions
Examples of Deviations. Cameron Jones, CPA, is verifying that all sales made by Hicks Company to customers on account are properly approved by credit personnel.
Messner Co. reported $140,620 of net income for 2012. Complete a schedule that shows the net cash flow from operating activities using the indirect method
She planned to present these financial statements to her banker to obtain a line of credit. Who will be affected by her decision
The normal selling price is $18 per unit. The company's capacity is 12,000 units per month. Due to the University of Alabama participating in the BCS National Championship Game, an order has been received from a retailer for 2,000 additional T-shi..
Calculate the lowest average cost of capital for each increment of $40 million of new capital, where Deming raises $20 million in the equity market.
youre given a spreadsheet with daily sales numbers ordered by date from january 1st to december 31st. you have been
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