Another nonmanufacturing expense category to consider is administrative expenses, in our example the fixed administrative include salaries, insurance, office supplies, and utilities. We will assume the following quarterly expenses: salaries $1,400; insurance $135; office supplies $300; utilities 500; other office expenses, $150. Total Administrative expenses for second and fourth quarter would be: O $4,970 $2,485 $9,940 O None of these
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- At the beginning of the year, managers at King Industries estimated $420000 in manufacturing overhead, 20000 direct labor hours and 50000 machine hours. Actual manufacturing costs at the end of the year were $425000 in manufacturing overhead. During the year, 22000 direct labor hours and 47000 machine hours were incurred. If overhead is applied based on direct labor hours, what is the predetermined overhead rate for the coming year? $21.00 per direct labor hour $8.40 per direct labor hour $19.09 per direct labor hour $9.04 per direct labor hour(a) What do you mean by inventory carrying cost and ordering cost? Explain with examples. 2(b) Mr Mahmud operates a cosmetics shop at Dhanmondi. The annual demand for soap is 2,500 units. The setup cost is Tk.15 per order. The material cost per unit Tk.3 and the holding cost 10% of average inventory.. a) What is the optimum number of units per order? (Use EOQ formula)b) What is the expected number of orders per year if management considers the followings units for order placement: 100 units, 250 units, 500 units and 1250 units?(Use comparative tabular format)(i want answer in step by step) Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60 - watt incandescent light bulb costs S .41 and lasts 1, 000 hours. A 15 - watt LED, which provides the same light, costs $3.20 and lasts for 12, 000 hours. A kilowatt - hour of electricity costs $.117. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 9 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
- Q5) A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimate: P = $35.00 - 0.02Q where P =selling price per unit Q = quantity sold per year On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. They estimate C = $4.00Q + $8000 where C = cost to produce and sell Q per year The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, where income minus cost will be a maximum. What quantity should the decision makers plan to produce and sell each year?Ella Co. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. For the month of October, Ella's estimated manufacturing overhead cost was P300,000 based on an estimated activity level of 100,000 direct labor-hours. Actual overhead amounted to P325,000 with actual direct labor-hours totaling 110,000 for the month. How much was the overapplied or underapplied overhead? Answer Format: 1,000 overapplied or 1,000 underappliedThe cost of producing 30 small fiberglass sailboats per year, and the cost of producing sails and fittings necessary to make the boats seaworthy in a single plant, are together R480,000. If produced in separate plants, the boats would cost R340,000, and the sails and fittings would cost R120,000. From this information, what can be learned about (1) economies of scale and (2) economies of scope in the production of sailboats, sails, and fittings? Perform any necessary calculations and explain.
- E4 ACME Corporation produces a variety of products for its diverse customer base, including the jet-powered pogo stick and jet-propelled tennis shoes, both of which are essential for catching roadrunners. Currently, they produce 40,000 engines per year that are used in the production of these two products. As the production manager for thisproduct line, you have determined that last year’s costs to produce the engines included: $99,600 in direct material expenses, $298,800 in direct labor expenses, $224,100 in variable overhead costs (i.e. power to operate the equipment), and $116,200 in fixed overhead costs (i.e. utilities to keep the factory operational). ACME plans to produce these engines only for the next 6 years. If they produce the engines in-house, they anticipate that direct material costs will increase at a rate of 5% each year. Further, they anticipate that labor costs will increase at a rate of 6% per year and variable overhead costs will increase at a rate of 3% per year.…All Smiles Dental Clinic would like to develop a hygienistmaster schedule for the treatment of patients. Five full timehygienists are scheduled six days a week, and each hygien-ist can treat 10 patients per day. If the number of patientsexpected is greater than the hygienist capacity scheduled, additional hygienists may be hired on a daily basis from atemporary worker employment agency. The agency requiresone day notice. Based on your knowledge of MPS, completethe following prototype schedule shown in Figure 11.48Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
- The monthly demand for ice cans being manufactured by Mr. Camus is 3200pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electricallyoperated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 andwhich cuts by 30% the unit cutting cost. Disregarding the cost of money, how manymonths will Mr. Camus be able to recover the cost of the machine if he decides to buynow?· A. 10 months· B. 11 months· C. 12 months· D. 13 monthsA man borrowed P20, 000.00 from a local commercial bank which has a simple interest of 16% but the interest is to be deducted from the loan at the time that the money was borrowed, and the loan is payable at the end of one year. How much is the actual rate of interest? a.i = 0.59 or 59% (actual rate of interest) b.i = 0.39 or 39% (actual rate of interest) c.i = 0.19 or 19% (actual rate of interest) d.i = 0.79 or 79% (actual rate of interest)Sandra Mahfood is one of 15 Grace distributors in the island. She has contracted with Kerry Foodsto supply its chain of supermarkets with various Grace items.Ms. Mahfood’s contract, which is renewed annually, states: "You will be providing Kerry Foodswith your services, as and when they are required, during the term of the contract". Ms. Mahfoodoperates on her own time and is paid a salary of $10,000.00 plus travel expenses. She is responsibleto pay for her own statutory taxes and is not covered for damage to her health or damage she mightsustain or cause while providing the service to Kerry Foods.While supplying one of the supermarkets in Mainland, Ms. Mahfood failed to stop at a stop signin the parking lot and hit a pedestrian. This resulted in the pedestrian sustaining injuries.A. Identify the type of Contract between Sandra Mahfood and Kerry Foods. B. Distinguish between Contract of Services and Contract for Services. C. State whether the pedestrian can sue Kerry Foods for the…