1. Soul Socket Inc. manufactures socket wrenches.

-For next month, the vice president of production plans on producing 4,450 wrenches per day.

-The company can produce as many as 5,000 wrenches per day, but is more likely to produce 4,500 per day.

-The demand for wrenches for the next three years is expected to average 4,250 wrenches per day.

-Fixed manufacturing costs per month total $374,000.

-The company works 22 days a month.

-Fixed manufacturing overhead is charged on a per-wrench basis.

Required: Answer a. – d. below

a. What is the theoretical fixed manufacturing overhead rate per wrench for the next month?

b. What is the practical fixed manufacturing overhead rate per wrench for the next month?

c. What is the normal fixed manufacturing overhead rate per wrench for the next month?

d. What is the master-budget fixed manufacturing overhead rate per wrench for the next month?

Homestead jeans co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. monthly fixed costs are $54,000, and variable costs are $29 per unit. the present selling price is $42 per unit. on november 12 of the current year, the company received an offer from dawkins company for 18,000 units of the product at $32 each. dawkins company will market the units in a foreign country under its own brand name. the additional business is not expected to affect the domestic selling price or quantity of sales of homestead jeans co. a. prepare a differential analysis dated november 12 on whether to reject (alternative 1) or accept (alternative 2) the dawkins order. if an amount is zero, enter zero "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign.

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

From what part of income should someone take savings?