How would each of the following costs be classified if units produced is the activity base? a.
Question:
How would each of the following costs be classified if units produced is the activity base?
a. Salary of factory supervisor ($120,000 per year)
b. Straight-line depreciation of plant and equipment
c. Property rent of $11,500 per month on plant and equipment
Step by Step Answer:
a Fixed ...View the full answer
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
How would each of the following be likely to affect the value of the dollar, all else being equal? Explain. a. U.S. stocks are perceived as having become much riskier financial investments. b....
-
How would each of the following changes tend to affect aggregate payout ratios (that is, the average for all corporations), other things held constant? Explain your answers. a. An increase in the...
-
How would each of the following changes tend to affect aggregate (that is, the average for all corporations) payout ratios, other things held constant? Explain your answers. a. An increase in the...
-
An unknown compound A of molecular formula of C10H180 reacts with H2S04 and heat to form two compounds (B and C) of molecular formula C10H16. B and C both react with H2 over Pd/C to form decalin....
-
Determine the domain and the range of the function. (a) (b) (c) --2 2 x
-
Tim owns a gold mine in Sovereign Hill and sells gold to a jewelry factory. On 1May, Tim shorts two of the 1 June gold futures contracts at $1740 per ounce. Each contract covers 10 ounces of gold. At...
-
P 67 Use the Standard Normal Table or technology to find the z-score that corresponds to the cumulative area or percentile. Table 4-Standard Normal Distribution Arca 0 z Z .09 .08 .07 .06 .05 .04 .03...
-
1. A change in supply causes a ______ (movement along/shift of) the supply curve. A change in quantity supplied causes a ____ (movement along/shift of) the supply curve. 2. Circle the variables that...
-
Explain how you could establish a framework using these theories to support an audit. Highlight the key principles of the American Institute of CPAs ( AICPA \' s ) Rules of Conduct. Compare and...
-
The scheduled arrival time for a daily l ight from Boston to New York is 9: 25 am. Historical data show that the arrival time follows the continuous uniform distribution with an early arrival time of...
-
FirstClass Gaming Inc. manufactures components for computer games within a relevant range of 250,000 to 500,000 components per year. Within this range, the following partially completed manufacturing...
-
The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced...
-
Refer to Section 8.3.2. Explain why software for which parameters sum to zero across levels of each index reports 11 AC = 22 AC = 0.514 and 12 AC = 21 AC = 0.514, with SE = 0.044 for each term.
-
A system composed of the following particles: a 0.500kg particle at the origin; a 1.25kg particle at x=0.150m,y=0.200m; and a 0.750kg particle at x=0.200m,y=-0.800m. Find the x-coordinate of the...
-
The following shows the historical return series of Stock C. Day Daily Return of Stock C Day Daily Return of Stock C 1 16 9.0% 16.0% 1.0% 7.0% 19.0% 4.0% 14.0% 11.0% 6.0% 11.0% 1.0% 2.0% 2.0% 6.5%...
-
For each of the following independent cases (A to E), compute the missing values in the table: Case Prime Cost Conversion Cost Direct Materials Direct Manufacturing Total Manufacturing Labor Overhead...
-
Let the following data be given: Delta (variation of the price of the option in relation to the price of the underlying) = 0.6; price of the underlying = 100; Value of a call on an underlying...
-
The channel shape cross-section and the rectangular cross-section shown in the Figure Q4 are made of materials with elastic-perfectly plastic behaviour. The yield stress of the material used for the...
-
On August 1, McLain Finance Inc. buys 3,000 Datawave common shares as a trading investment for $114,000 cash. On October 15, McLain receives a cash dividend of $2.75 per share from Datawave. On...
-
San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...
-
Down Home Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $40,000, and variable costs are $22 per unit. The present selling...
-
Power Serve Company expects to operate at 85% of productive capacity during April. The total manufacturing costs for April for the production of 30,000 batteries are budgeted as follows: Direct...
-
Roadworthy Tire and Rubber Company has capacity to produce 170,000 tires. Roadworthy presently produces and sells 130,000 tires for the North American market at a price of $90 per tire. Roadworthy is...
-
According to the Hawail Wildlife Fund, North Pacific Humpback Whales migrate from the icy waters around Alaska during the fall to spend the winter in Hawaii where they mate, give birth, and nurture...
-
Find the limit 4 lim (x -2x32x + x 1) =? 2+1 -
-
Train-the-trainer manual for the training and development department within your organization or for one with which you are familiar. Your trainers will soon be responsible to train the staff about...
Study smarter with the SolutionInn App