COST OF PRODUCTION ASSIGNMENT
Total Total Average Average Average
Total Fixed Variable Total Fixed Variable Total Marginal
Product Cost Cost Cost Cost Cost Cost Cost
(Q) (TFC) (TVC) (TFC+TVC) (TFC/Q) TVC/Q) (TC/Q) (DTC)
0 $________ $0 $________ $________ $________ $________ $________
1 $________ $85 $________ $________ $________ $________ $________
2 $________ $125 $________ $________ $________ $________ $________
3 $________ $150 $________ $________ $________ $________ $________
4 $________ $240 $________ $________ $________ $________ $________
5 $________ $350 $________ $________ $________ $________ $________
6 $________ $550 $________ $________ $________ $________ $________
7 $________ $760 $________ $________ $________ $________ $________
1.A firm has fixed costs of $120 and variable costs as indicated on the table above. Complete the table.
2.Graph the Fixed Costs, Variable Costs, and Total Costs.
3.Graph the AFC, AVC, ATC, and MC.
4.How would each curve differ if Fixed Costs were $200 rather than $120.
In: Economics
what are the examples of variable cost in a restaurant ?
In: Accounting
A manufacturing company produces three products: A, B, and C. The following data is available for the year:
Product A: 10,000 units produced, direct materials cost per unit $5, direct labor cost per unit $10, manufacturing overhead cost per unit $8.
Product B: 5,000 units produced, direct materials cost per unit $8, direct labor cost per unit $12, manufacturing overhead cost per unit $10.
Product C: 3,000 units produced, direct materials cost per unit $12, direct labor cost per unit $15, manufacturing overhead cost per unit $12.
The company had total manufacturing overhead costs of $80,000 for the year. Using activity-based costing (ABC), calculate the total cost of producing each product, including both direct and indirect costs.
In: Accounting
Property, plant, and equipment, at cost:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . .
$140,000
Buildings. . . . . . . . . . . . . . . . . . . . . . . .
700,000
Less: Accumulated depreciation. . . . . .
(344,000)
Equipment. . . . . . . . . . . . . . . . . . . . . . .
402,000
Less: Accumulated depreciation. . . . . .
(266,000)
On July 1
20192019,
the resort expanded operations and purchased additional equipment for cash at a cost of$108,000.The company depreciates buildings using the straight-line method over 20 years with residual values of$82,000.Due to expected obsolescence, the equipment has a useful life of only 10 years and is being depreciated by the double-declining-balance method with a residual value of zero.
Requirement 1. Journalize
ContiLake Resort's plant asset purchase and depreciation transactions for2019.
(Record debits first, then credits. Exclude explanations from any journal entries.)
Begin by journalizing the plant asset purchase.
Next, journalize the depreciation on the buildings.
Now journalize the depreciation on the equipment.
In: Accounting
health outcomes in a cost-effectiveness methodology.
In: Economics
2. Cost-Volume-Profit (CVP) 40 points
a. Assignment Question on Cost Volume Profit (CVP)
MMC Nutri Company is a small family fast food restaurant that opened in 2015, serving tropical cuisine to its mainly Afro-American, Asian and African customers. Because of its hot ingredients, few others patronize the food.
This business serves its popular dish Jollof rice, fish or meat stew, and rice flour porridge, as a meal for $9 a serving. Its variable cost per serving is $4.10 and its monthly fixed cost is $4,600 a month. On average, the business sells 60 servings a day, opened every day except Sunday. The highly religious owner takes Sunday off, as a rest day.
During this 2020 year of COVID-19 pandemic, average sales has dropped significantly. In June of this year, the federal government gave a lump sum financial assistance of $10,000 to the business, during a six weeks lockdown. Since then, current sales has dropped by 60% of its pre-COVID level, despite the introduction of take-away opportunity. The business optimistically estimates that sales will slowly increase to a maximum of 80% of pre-COVID level, for the rest of this year.
The owner is considering closing the business, due to uncertainty and depletion of personal savings to finance its operations, and has commissioned you to give advice, based on your knowledge of accounting.
The business is also exploring an available option of a $6,000 investment in machinery that will be used for 5 years and will reduce variable cost by $0.30 a unit. Sales price/unit will not change.
What will be your overall advice to this owner? Justify each option with analysis based on CVP.
(Points will be awarded for trend of thought and the application of CVP principles. There is no one answer.) 30 points
b. Assignment on Plant-wide Overhead Absorption
Basic Construction Company won a bid to build a gym between January and March 2020. The actual manufacturing overhead for the completed construction was $128,610. On December, 2019, before the start of the construction, the company decided to set an annual overhead rate of $875,000 for all jobs during 2020, to be absorbed by direct labor hours. The actual direct labor hours used for this job was 49,000, and the direct machine hours used was 12,700. The annual direct labor hours estimated for 2020 by the company was 350,000 DLH. Provided there is over or under absorbed overhead, considered not significant, prepare the journal entry to close the manufacturing overhead account, at the end of the contract. 10 points
In: Accounting
explain project cost-benefit analysis?
In: Operations Management
Question 4-4: The Murphy Corporation has a commercial property policy with a Causes of Loss - Basic Form covering its building. Explain whether each of the following losses would be covered under Murphy’s policy. For those that would not be covered, identify a causes of loss form, if any, that would cover the loss.
A windstorm damaged Murphy’s roof.
During a major storm, the river that runs near Murphy’s property overflowed its banks. The rising water seeped into Murphy’s building, damaging the hardwood floors.
Vandals broke several windows in Murphy’s building.
Heavy earthquake shocks caused structural damage to Murphy’s building.
Question 5-6: Coverage for Jones’s building and business personal property is currently subject to a Causes of Loss - Broad Form. When Jones renews his property insurance, he will purchase coverage subject to a Causes of Loss - Special Form, rather than a Broad Form. Briefly explain how the coverage for Jones’s building and business personal property will be affected by this change in the causes of loss form.
In: Finance
SBC's focus on building communities with bicycling enthusiasts can be viewed as which of the following two types of promotional strategies?
Pull strategy
Push strategy
Which forms of social media are mentioned in the video as parts of SBC's overall social media strategy?
Online brand communities
Online brand communities and product and service review sites
Social networks
Product and service review sites
Social networks and online brand communities
SBC's Senior Community and Social Media Specialist notes at least one metric that the company uses to evaluate the performance and value of its social media efforts. Which one(ones) is that?
Follower drift
Bounce rates
Engagement and follower drift
Engagement
Conversion rates
Assume that SBC's marketing manager has decided that they would like to send consumers who have never bought a bicycle from SBC, but have opted into mobile promotions from the company a mobile coupon for one of its bicycles when they are near a sports equipment retailer. This is an example of
search engine optimization.
geo-location marketing.
viral marketing.
native advertising.
In: Other