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Problem
Sparrow Co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $8.00 a unit. The unit cost for Sparrow Co. to make the part is $9.00, which includes $0.60 of fixed costs. If 4,000 units of the part are normally purchased each year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease for making the part rather than purchasing it?
a. $1,600 cost increaseb. $20,000 cost decreasec. $12,000 cost decreased. $4,000 cost increase.
on august 1 a student signed a lease for an apartment for a period of three years. under the lease agreement a security
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The additional amount serves as security for damages to the property and the tenant's failure to pay future rents. How should the payments be characterized (e.g. on lease documents) to minimize Rachel's current tax liability?
If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of production, the conversion cost per equivalent unit was $8.00.
Includes all changes in equity during the period, except those resulting from investments by owners and distributions to owners.
You are a Branch Manager and your office saw 2,500 patients in January 2012. From historical data, you know each month you add exactly 160 new patients and this trend will continue indefinitely.
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Determine Douglas-Roberts' pension expense for 2011 and prepare the appropriate journal entries to record the expense.
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