Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Jones Company produces widgets.  Old Ham Company has approached Jones with proposal to sell company one of components used to make widgets at the price of $100,000 for 50,000 units.  Jones is presently making these components in its own factory.  Following costs are associated with this part of process when 50,000 units are produced:

 

Direct material

$44,000

Direct labor

20,000

Manufacturing overhead

    60,000

Total

$124,000

 

Manufacturing overhead comprises of $32,000 of costs that will be eliminated if components are no longer made by Jones.  Remaining manufacturing overhead will continue whether or not Jones produces components. 

 

i) Determine the amount of avoidable costs if Jones purchases rather than makes components?

 

A)  $60,000

 

B)  $96,000

 

C) $124,000

 

D) $100,000

 

ii) Value of benefits foregone by choosing one decision alternative over another is a(n)

 

A) Differential revenue.

 

B) Sunk cost.

 

C) Opportunity cost.

 

D) Incremental benefit.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916345

Have any Question? 


Related Questions in Accounting Basics

Task- this assessment task consists of five

Task- This assessment task consists of five questions. Question 1 - Financial statement disclosures You are the financial accountant for Rainyday Ltd, and are in the process of preparing its financial statements for the ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

Do the following assignment using microsoft excel

Do the following assignment using Microsoft Excel (handwritten projects will not be accepted) This is an individual assignment, make sure you have included your name, Id and Section no on the printout. Submit in class on ...

Accounting for managers- shareholders and lenders whilst

Accounting for Managers- Shareholders and lenders, whilst not being the only stakeholders, provide capital to companies because they seek a return commensurate with the level of risk that they are willing to take. You ar ...

Learning outcomeson successful completion of this

Learning Outcomes: On successful completion of this assignment, students will be able to: - Recognise the laws relating to companies in Australia; and - Examine the duties, rights and responsibilities of company officers ...

A strong 1 page paper with references forbased on the

A strong 1 page paper with references for Based on the scenario presented in the Learning Team Instructions, write a 1-page report on your IT Audit and Control Analysis Plan. Draft answers to the following: • Why conduct ...

Activity no the record the following transactionsjuly

Activity No. The record the following transactions: July      5          Received PHP850 cash from customers on account.             10         Billed customers for services performed, PHP6,300.             15         Pa ...

Q1 partners a b and c are contemplating using the following

Q1. Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum ...

Theory and current issues in accounting assignment-

Theory and Current Issues in Accounting Assignment- Learning Objective- - Evaluate different accounting theories and their implications for policy choices by managers; - Synthesize the complex elements of the Conceptual ...

Quantity sold400 units selling price per unit 600 total

Quantity Sold 400 units Selling Price per unit $600 Total variable Costs $160,000 Fixed Costs $50,000 Target Income $90,000 Calculate the following: 1- Contribution margin per unit 2- Total contribution margin 3- Break-e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate