Determine total factory overhead costs

Assignment Help Finance Basics
Reference no: EM1356916

Can you please help with these two questions?

2. At a volume of 20,000 direct labor hours, Tirso Company incurs $50,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 25,000 direct labor hours, Tirso Company would expect to incur total factory overhead costs of:

**************************************************************************
3. Cobble Corporation produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $160 100%
Variable expenses 48 30%
Contribution margin $112 70%

Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on the company's monthly net operating income of this change?

A) increase of $56,100
B) decrease of $8,900
C) increase of $99,300
D) decrease of $56,100

 

Reference no: EM1356916

Questions Cloud

Journal entries and t-accounts for decort company : DeCort Company had these adjusting entry situations at the end of December:May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for 2yrs). This is the first year of the policy-Transaction was recorded as i..
Compare five technologies for in-home internet access : Compare and contrast at least five technologies which are readily available for in-home internet access. You must consider practical as well as technical differences in your comparison.
Compute firms retained earnings balance : A company had a year end 2004 retained earnings balance of $220,000. The company reported net profits after taxes of $50,000 in 2005 & paid dividends in 2005 of $30,000.
Consolidation-journal entries : On January 1, 2007, the stockholders of Phillips and Solina agreed to a consolidation. Because FASB requires that one party be recognized as the acquirer and the other as the acquirer-Prepare the journal entries on the books of Phillips to record t..
Determine total factory overhead costs : At a volume of 20,000 direct labor hours, Tirso Company incurs 50,000 in factory overhead costs, including 10,000 in fixed costs. suppose that this activity is within the relevant range,
Fixed asset depreciation-cisco and funseth farms examples : Funseth Farms, purchased a tractor in 2008 at a cost of $30,000. The tractor was sold for $3,000 in 2011. Depreciation recorded through the disposal date totaled $26,000.
Simple organizational structure : additional feature of this type of organizational structure would be the flat structure that limits upward mobility.
Responsibility and hierarchical relationships : Explain the executive, managerial, and administrative organization of a firm and indicates responsibility and hierarchical relationships.
Computation of next year stock return : If the returns on large corporation stocks are normally distributed, for which of the following returns can you not state, with 95 percent confidence that next years stock return might be equal to?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine new contribution margin

Har Company sold 5,000 units for a prie of $50 per unit and had the following data, If the sales price per unit were to increase by 10%,

  Determine effective rate of payment

Commercial paper is usually sold at a discount. Company A has just sold an issue of ninety day commercial paper with a face value of 1 million dollar.

  Statements concerning defined-contribution plans

Find the correct statements concerning defined-contribution plans.

  Revise the pricing strategy

As a advertiser, when do you think it is right to go against the pricing norms of your company? Would you be comfortable making the case to executives.

  Determine the average inventory

Corporation ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 each unit. Determine the average inventory?

  Explain what is the lowest fc

Explain what is the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market?

  Calculate the nper

Calculate the NPER given the following characteristics

  Various techniques of inventory management

An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum

  Insurance company as a financial intermediary

he savings rate domestically has raised, probably due to uncertainty about the future. All else equal, how should this affect market interest values?

  An effective way for firms to improve the liquidity

ADRs are considered an effective way for firms to improve the liquidity of their stock.

  Find the degree of financial leverage

Gina Dare, who wishes to be a millionaire, plans to retire at the end of forty years. Gina's plan is to invest her money by depositing into an IRA at the end of every year.

  Advantages and disadvantages of buying existing business

Examine the advantages and disadvantages of buying an existing business.

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