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Question :
Mountain Air Limited manufactures a line of room air purifiers. Management is presently computing the possible production of an air purifier for automobiles. Based on an yearly volume of 10,000 units, the evaluated cost per unit of an auto air purifier follows.
Direct materials $ 8.00
Direct labor 1.50
Factory overhead 7.00
Total $ 16.50
These cost predictions add $50,000 in facility-level fixed factory overhead averaged over 10,000 units.
The completed air purifier units add a battery-operated electric motor, which Mountain Air assembles with parts purchased from an outside vendor for $2.00 per motor. Mini Motor Company has provided to supply an assembled battery-operated motor at a cost of $5.00 per unit, with a minimum annual order of 5,000 units. If Mountain Air accepts this offer, it can be able to reduce the variable labor and variable overhead costs of the auto air purifier by 50 percent.
(a) Determine the net benefit of outsourcing the electric motors from Mini Motor Company.
(b) Determine the net benefit (cost) of outsourcing the electric motors from Mini Motor Company; consider the motor-assembly space could be rented to another company for $20,000 per year.
Purpose a schedule that converts Dr. Accord's excess of cash collected over cash disbursed for the year 2007 to total income on an accrual basis for the year 2007.
Kathy’s Blooms purchased a delivery van for $20,000. The company was given a $2,000 cash discount by the dealer, and paid $1,000 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Kathy’s Blooms increas..
The question is about ratio analysis finding out liquidity and solvency of the company - relative profitability of the companies by computing the net income and earnings per share for each company for 2007.
Develop an idea that will be the start of a business plan. Build on the idea for a service business - a Home Construction/Building Business.
How much revenue will San report in its 2011 and 2012 income statement related to this contract using the percentage-of completion method?
What the bookkeeper did was definitely unethical. But what if one of her grandchildren had been ill and needed an expensive operation?
Purpose the journal entries that Rod Corporation recorded during 20X4 related to its investment in Stafford Corporation, considering Rod uses the equity method in accounting for its investment.
Computation of doubtful expenses for the year ended - What amount is owed to pacific by Riva Co. for September collections plus accrued interest on the note to September 30?
By using the regulatory discussions and relevant international accounting standards (IASs) which are taught in the module APC311, you are required to provide a critical evaluation of the following areas of financial reporting.
question consider you have been hired as a consultant to philan manufacturing company located at 1 main st. worcester
Illustrate what is the total amount of other financing sources to be recognized on the fund-based financial statements over this six-year period?
Discuss factors or conditions that contribute to such a possibility. How can additional information and supplementary data (beyond financial statements) help prevent this possibility?
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