What is the difference between variable and fixed costs in the context of total cost and per unit costs? Provide examples. short answer

The cost of equipment purchased by Bramble, Inc., on June 1, 2020, is $92,400. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000, and its total production is estimated at 600,000 units. During 2020, the machine was operated 6,900 hours and produced 63,200 units. During 2021, the machine was operated 6,320 hours and produced 55,200 units.

Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.)

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department

Bal., 7,000 units, 70% completed 28,210 To Finished Goods, 161,000 units ?

Direct materials, 165,000 units @ $2 330,000

Direct labor 363,100

Factory overhead 141,270

Bal. ? units, 60% completed ?

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period. $

2. Cost of units transferred to finished goods during the period. $

3. Cost of ending work in process inventory. $

4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $

b. Did the production costs change from the preceding period?

c. Assuming that the direct materials cost per unit did not change from the preceding period,

did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department

Bal., 6,000 units, 70% completed16,140To Finished Goods, 138,000 units?

Direct materials, 141,000 units @ $1.5211,500  

Direct labor178,700  

Factory overhead69,430  

Bal., ? units, 45% completed?  

Cost per equivalent units of $1.50 for Direct Materials and $1.80 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period$

2. Cost of units transferred to finished goods during the period$

3. Cost of ending work in process inventory$

4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)$

b. Did the production costs change from the preceding period?

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?

Warren INC. bases their cost of capital or WACC on a number of erroneous assumptions.Going by their current methodology, Warren’s wacc is:

Compute/answer the following:

1.Look at the pre-tax cost of each component in the current wacc shown above. What is the problem with these three values? In other words, if you knew nothing about how Warren is computing its wacc, and were only shown those three values, what red flag should these numbers raise?

2.Provide a revised estimate of Warren’s wacc using methods revised weighted average cost of capital. Show all of your work in putting together your estimate of the wacc. Also, you will have to make choices, so where needed,describe the choices/assumptions that you made in estimating the wacc.

3. With the old wacc estimate above, and your new wacc estimate, describe the impact on (1) the value of the firm, (2) investment decisions, and (3) growth of using the new wacc as opposed to the original wacc.

4.Should Warren use the new wacc for all potential investments/projects? Why/why not?

Important things to consider:

Ignore the call feature on the bonds and ignore flotation costs.

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $13,000; direct labor, $3,500; and overhead, $1,575. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?
4. How much total cost is transferred to finished goods during June?
Complete this question by entering your answers in the tabs below.

Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?

Using the accumulated costs of the jobs, what predetermined overhead rate is used?

How much total cost is transferred to finished goods during June?

A company wants to build a new factory. They know the cost to build the factory and have forecasted the future cash flows from the plant. They want to do an NPV analysis but are not sure what rate to use. They come to you as a consultant to figure out their cost of capital.

The information they have given you is:

They just paid a dividend of $2.75. Their dividend growth rate is 4.8%. Their current stock price is $32.00, and they have 1,808,000 shares outstanding.

They also have a beta of 1.16, the risk free rate is 3.01%, and the market risk premium is 5.24%.

They have 11,000 bonds outstanding with a coupon rate of 4.5%, 14 years to maturity, a face value of $1000 and a market price of $1,100. They are semiannual bonds.

Their corporate tax rate is 21%.

What is the debt to equity ratio?

What is the cost of equity?

What is the cost of debt?

What is the tax effected cost of debt?

What is the WACC?

Considering the vertices of the "iron triangle" of healthcare — cost, quality, and access as described by Lehman — how will healthcare policy and reform successfully address one without compromising the other(s)?

1. Use Microsoft Excel to solve the question .

The initial cost of an asset is BD100000. It has useful life of 9 years. The estimated salvage value of the asset at the end of useful life is zero. Calculate the annual depreciation and book value using double-declining balance method and find out the year in which the switching is done from double-declining balance method to straight-line method.

Theory related to switching : Switching between different depreciation methods:- Switching from one depreciation method to another is done to accelerate the depreciation of book value of the asset and thus to have tax benefits. Switching is generally done when depreciation amount for a given year by the currently used method is less than that by the new method. The most commonly used switch is from double-declining balance (DDB) method to straight-line (SL) method. In double-declining balance method, the book value never reaches zero. In addition the calculated book value at the end of useful life does not match with the salvage value. Switching from double-declining balance method to straight-line method ensures that the book value does not fall below the estimated salvage value of the asset.

2. Identify why the switching is desired in the above case study
3. Use Microsoft Excel to solve this Question

Some seed cleaning equipment was purchased in 2009 for BD 8,500 for an expected life of 12 years. What is the book value of the equipment at the end of 2021? Original salvage value was estimated to be BD 2,500 at the end of 12 years.

Compute using

1. Straight line method
2. DDB
3. DB
4. Sum of Years method
5. Construct a cash flow diagram for the values computed and mark them for 12 years.

What is the weighted-average cost of capital for a firm with the following sources of funds and corresponding required rates of return: $15 million common stock at 15%, $5 million preferred stock at 9%, and $10 million debt at 6%. All amounts are listed at market values and the firm's tax rate is 35%.

A. 9.0%

B. 10.3%

C. 12.1%

D. 13.5%

E. 14.4%

*show work please