Business, 18.03.2020 05:18 alondra314
Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue; the other is red. Ink is made in batches with setup costs being $2,000 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 300 hours of labor used to make the blue ink and the 100 hours of labor used to make the red ink. Under these circumstances
none of the answers is correct.
more of the total setup cost should be assigned to the red ink than to the blue ink.
more of the total setup cost should be assigned to the blue ink than to the red ink.
the total setup cost should be allocated equally between the red and blue ink.
- If the Company uses a single company wide overhead rate based on labor hours, the amount of setup cost allocated to the
blue ink is $4,000 and red ink is zero.
blue ink is $1,000 and red ink is $3,000
blue ink is $3,000 and red ink is $1,000.
blue ink is $2,000 and red ink is $2,000.
Answers: 1
Business, 21.06.2019 16:30
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Business, 22.06.2019 19:00
Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.
Answers: 2
Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One i...
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