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Kirsten Corporation makes 100,000 units per year of a part called a B345 gasket for use in one of its products. Data concerning the unit production costs of the B345 gasket follow:direct materials .... 0.15direct labor .... 0.10variable manufacturing overhead ..... 0.13fixed manufacturing overhead .... 0.24total manufacturing cost per unit .... 0.62An outside supplier has offered to sell Kirsten Corporation all of the B345 gaskets it requires. If Kirsten Corporation decided to discontinue making the B345 gaskets, 25% of the above fixed manufacturing overhead costs could be avoided.Required:Assume Kirsten Corporation has no alternative use for the facilities presently devoted to production of the B345 gaskets. If the outside supplier offers to sell the gaskets for $0.46 each, should Kirsten Corporation accept the offer? Fully support your answer with appropriate calculations direct
Discuss the elements of BFOQ (Bona Fide Occupational Qualification) and how this defense relates to the above case.
Find monthly fixed maintenance cost and the variable maintenance cost per driver unit using the visual-fit method based on each potential cost driver. Explain how you treated the April data.
Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable.
Kelly issues $315,000 of 4%, 15 year bonds dated january 1, 2009, that pay interest semiannually on june 30 and december 31. They are issued at 253,263, and their market rate is 6% at the issue date.
Prepare an income statement, using the single-step form, and a statement of owner's equity using the data (below) from the ledger of Morrison Co. after adjustment at September 30, 2011 the end of the fiscal year.
for a recent 2-year period the balance sheet of metal pro company showed the following stockholders equity data at
product x is a consumer product with a retail price of 9.95. retailers margins on the product are 40 based on the
company produces two products. the following information is available product x selling price per unit- 46 variable
the following selected account balances were taken from abc companys general ledger at january 1 2011and december 31
Differential Analysis for Machine Replacement
Tidbit Inc. has a sales budget for next month of $800,000. Cost of goods sold is expected to be 25 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.
sharp companycomparative balance sheetdecember 312011 2010cash 64000 36000accounts receivable
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