Based on the fact that a classmate wants to open a food delivery service in town that would enable customers to make use of an app to make orders for lunch or dinner, the resource I would direct her to is the result of an online survey.
The reason for this is to give her insight on the needs of her potential customers and adjust accordingly.
What is a Survey?This refers to the quantitative analysis that is sent to a group of persons in order to get input from them on different issues or topics that would help them analyze and make decisions.
Hence, we can see that in order to make an accurate analysis of the food delivery system which is in the early stages, the best advice to give to her is to ask her to check the result of an online survey about a related food delivery system.
What this does is give her insight on the needs of her potential customers and adjust accordingly.
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What is the importance of managers selecting the appropriate channel for message distribution in the Information Age?
The importance of managers selecting the appropriate channel for message distribution in the Information Age is to improve employee engagement as well as the manager ability to help your employees increase their productivity thought leadership and communication skills.
What is an Information Age?It means the period that began in mid-20th century which is characterized by a rapid shift from traditional industry established by the Industrial Revolution to an economy primarily based upon information technology.
During this period, it is very important to choose the right channel or medium of message transfer because by choosing the right medium, we ensure that message arrives to your intended audience and that your audience accurately understands the purpose and meaning of your message.
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What is produced by a primary metal manufacturing subcontractor?
minerals
assembled car frames
sheet metal
batteries
Sheet metal is produced by a primary metal manufacturing subcontractor. Subcontracting is a typical business activity when a brand owner or Original Equipment Manufacturer (OEM) contracts with an outside manufacturing service provider, also known as a Manufacturing.
Partner, to outsource all or part of their manufacturing activities (MP). Subcontracting is the practice of making a legal arrangement with a third party to carry out a specific quantity of metal work. The external party in this arrangement is referred to as a subcontractor. The act of delegating or outsourcing a portion of the duties and responsibilities under a contract to a different party known as a subcontractor is known as subcontracting.
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Answer:
A primary metal manufacturing subcontractor produces sheet metal. When a brand owner or Original Equipment Manufacturer (OEM) contracts with an outside manufacturing service provider, also known as a Manufacturing, this is a common business activity. Partner with them to outsource all or a portion of their manufacturing activities (MP). Subcontracting is the practice of entering into a legal agreement with a third party to perform a specific amount of metal work. In this arrangement, the external party is referred to as a subcontractor. Subcontracting is the act of delegating or outsourcing a portion of a contract's duties and responsibilities to a third party known as a subcontractor.
Why should variations between expected and actual work performance according to task requirements be documented and communicated to relevant personnel?
Variations between expected and actual work performance according to task requirements be documented and communicated to relevant personnel because:
This will help the relevant personnel to note the outcome of their decisions and be able to make adjustments in future forecasts. Why is important to communicate variations in work performance to the relevant personnel?It is indeed very important to communicate the variations in expected and actual work performance because it will help the personnel to be more realistic in their future business predictions. When the relevant personnel are aware of the relevant market trends, they will be able to note these and make better business decisions.
If the actual work performance is different from the expected performance and the personnel are not notified of this, they may be misled and not aware of what is the reality on the ground. This way, more mistakes will happen in the business.
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What is the name of the standards that accountants must follow to ensure the financial statements they prepare are relevant, reliable, consistent, and comparable?
General Accounting Rules and Regulations
Generally Accepted Accounting Principles
U.S. Accounting Standards
Global Accounting Standards
Standard Operating Procedures for Accounting
The rules accountants must abide by so the financial statements they create are pertinent, trustworthy, uniform, and comparable to generally accepted accounting principles.
It's best to choose option B. The ten GAAP rules are concerned with ethics, transparency, and consistency in accounting.
GAAP is strongly advised for all businesses though required only for publicly traded and regulated companies. The details, difficulties, and legalities of corporate and business accounting are all covered by generally accepted accounting principles or GAAP.
The Financial Accounting Standards Board (FASB) bases its extensive collection of approved accounting techniques and procedures on generally accepted accounting principles.
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Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.
A $94,000 in raw materials were purchased for cash.
B $89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.
C Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.
D Additional manufacturing overhead costs of $143,000 were incurred and paid.
E Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate.
F All of the jobs in process at the end of the month were completed.
G All of the completed jobs were shipped to customers.
H Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.
Required:
1. Post the above transactions to T-accounts.
2. Determine the adjusted cost of goods sold for the period.
1. Posting the transactions to T-accounts for Jurvin Enterprises is as follows:
Raw MaterialsAccount Titles Debit Credit
Cash $94,000
Work in Process $78,000
Manufacturing Overhead 11,000
Balance $5,000
Work in ProcessAccount Titles Debit Credit
Raw Materials $78,000
Wages Expenses 112,000
Mfg Overhead 152,000
Finished Goods $342,000
Manufacturing OverheadAccount Titles Debit Credit
Raw Materials $11,000
Wages Expenses 20,000
Cash 143,000
Work in Process $152,000
Cost of goods sold 22,000
Finished GoodsAccount Titles Debit Credit
Work in Process $342,000
Cost of goods sold $342,000
Cost of Goods SoldAccount Titles Debit Credit
Finished Goods $342,000
Manufacturing Overhead
(Underapplied) $22,000
2. The adjusted cost of goods sold for the period is $364,000.
Transaction Analysis:Raw Materials $94,000 Cash $94,000
Work in Process $78,000 Manufacturing Overhead $11,000 Raw Materials $89,000
Work in Process $112,000 Manufacturing Overhead $20,000 Wages Expenses $132,000
Manufacturing Overhead $143,000 Cash $143,000
Work in Process $152,000 Manufacturing Overhead $152,000
Finished Goods $342,000 Work in Process $342,000
Cost of goods sold $342,000 Finished Goods $342,000
Cost of goods sold $22,000 Manufacturing Overhead (Underapplied) $22,000
Adjusted Cost of Goods Sold:Finished Goods $342,000
Underapplied overhead 22,000
Total cost of goods sold $364,000
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THE MERCHANDISE APPROACH
The merchandise approach can be used only when a customer demonstrates interest in a product. What might you say to a customer who is looking at tennis shoes to demonstrate the merchandise approach???
What we can say to a customer who is looking at tennis shoes to demonstrate the merchandise approach will be:
do you like the designdo you like the colorwhat size are you looking for.What is a Merchandise Approach?In marketing, a merchandise approach is the most effective initial approach in the retail sales because it immediately focuses attention on the merchandise.
While trying to make a sales with the merchandise approach, the salesperson makes a comment or asks questions about such product that the customer has shows interest in. However, a merchandise approach can also be used if a customer stops to look at a specific item to bring back their attention to other products.
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suppose you invested 10000 in this group of mutual funds and diversified the investment by placing 2000 in domestic equity funds, 4000 in international equity funds, 3000 in specialty stock funds, and 1000 in hybrid funds. What is the expected return on the portfolio?
Average Weight = 7.8156643
Expected Return on the Portfolio = $122,730
Type of Fund No of fund(a) total return%(b)
Domestic Equity 9191 4.65
International Equity 2621 18.15
Specialty Stock 1419 11.36
Hybrid 2900 6.75
A) Average Weight =
Σa.b /Σa = (9191 * 4.65) + (2621 * 18.15) + (1419 * 11.36) + (2900 * 6.75) / (9191 + 2612 + 1419 + 2900)
= 126004.14 / 16122
Average Weight = 7.8156643
B) Using the number of funds as a weight presents a problem because it considers the cost of funds rather than their value. As a result, the higher the cost, the greater the return. A better weight parameter would have been the value of funds.
C) Expected Return on the Portfolio =
Σ (p)*(x) = (2000*4.65) + (4000*18.15) + (3000*11.36) + (1000*6.75)
Expected Return on the Portfolio = $122,730
By multiplying the weight of each asset by its expected return, the expected return is calculated. Then add the values for each investment to get your portfolio's total expected return.
As a result, the formula:
Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return)...
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The complete question is -
Morningstar tracks the total return for a large number of mutual funds. The following table shows the total return and the number of funds for four categories of mutual funds (Morningstar Funds500, 2008).
Type of Fund
Domestic Equity
International Equity
Specialty Stock
Hybrid Number of Funds
9191
2621
1419
2900
Total Return (%)
4.65
18.15
11.36
6.75
a. Using the number of funds as weights, compute the weighted average total return for the mutual funds covered by Morningstar.
b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return for Morningstar in part (a)? Discuss. What else might be used for weights?
c. Suppose you had invested $10,000 in mutual funds at the beginning of 2007 and diversified the investment by placing $2000 in Domestic Equity funds, $4000 in International Equity funds, $3000 in Specialty Stock funds, and $1000 in Hybrid funds. What is the expected return on the portfolio?
Jane is a customer service manager. She has been collecting information about customers and their experiences at her place of work for the past six months. She has noticed that consumers are interested in more online options so she hired a web developer to expand the company Web site. What has Jane used to improve customer experiences? Performance Based Evaluation (PBE) Performance Based Evaluation (PBE) Customer Satisfaction Analysis (CSA) Customer Satisfaction Analysis (CSA) Customer Relationship Management (CRM) Customer Relationship Management (CRM) Key Performance Indicators (KPIs)
The tool that allowed Jane to notice that consumers are interested in more online options and made her to hired a web developer to expand the company Web site is known as Customer Satisfaction Analysis; this analysis thus, helped her to improve customer experiences.
What is a Customer Satisfaction Analysis?Basically, the Customer Satisfaction Analysis stemmed from the measurement of Customer satisfaction which helps to determines how happy customers are with a company's products, services, capabilities etc.
The analysis often uses a data collected through a survey or questionnaire to identify behaviors that lead to happy or unhappy customers. Through these analysis, firms may spot trends causing dissatisfaction and implement changes to retain current customers.
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What type of market should be considered for these services or products: A spray that combines pain relief and protection for cuts and scrapes
Answer:
Parents and doctors
Explanation:
I assumed you were asking for a specific group instead of age groups, race, locations, etc. But typically, parents and doctors are going to be the best fits. parents need it for their kids and doctors also need it for kids or people with low pain tolerance.
When doing financial planning for your
retirement or old age, you should:
Answer:
For Retirement Keep in Mind the:
Remember to SaveKnow what requirements or needs you need to meet for retirementSort out your money for car, rent, home, insuranceMake sure to have a retirement planLook into your pension if you have or you don't haveOld Age :
Budgeting your Money through Retirement money ( Specifically Set Aside For Retirement)You can make sure and check that you have medicare or some sort of health insurance/ if you need you can decide when you are ready to use social security or other objects of payments.Make sure to use smart spending; Groceries, Fundamental Needs, Health, and True pleasure or enjoyment.Look into your stock and see what you can change or what you think you should do with them, Keep around 30% of your stock that is the portfolio.Should invest in Real Estate if you have enoughExplanation:
These are all important because they are all ways that people can keep their life organized way while thinking of future or present finance, Keeping all of their stocks and savings limited or well distributed, and things that they could possibly buy like medicare to help them be more prepared.
An integral part of the planning process where the manager makes future predictions regarding sales trends based on current situations is known as
An integral part of the planning process where the manager make future predictions regarding sales trends based on current situations is known as... forecasting.
How would you define forecasting?Making future forecasts is a part of forecasting. Companies utilize forecasting in finance to predict earnings or other statistics for upcoming periods. Forecasts are used by traders and analysts in value models, to time trades, and to spot trends. Historical data is frequently the foundation of forecasts.
What does business forecasting entail?Describe predicting. Many firms utilize forecasting as a tool for making decisions to aid in planning, budgeting, and anticipating future growth. Simply said, forecasting is the process of attempting to anticipate future outcomes using information from the past and management expertise.
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To be eligible for the leadership training program offered by the office, a student must have at least 2 years of post-secondary education or have gone through the organization finance training.
In cell K2 enter a formula using the IF and OR functions and structured references as follows to determine if Kay Colbert can join the leadership training program:
a. The IF function should determine if the value in the student's Post-Secondary Years column is greater than or equal to 2 OR if the value in the student's finance certified status is "Yes", returning the text Yes if a student meets one or both of those criteria or the text No if a student meets neither of those criteria.
To be able to determine if Kay Colbert can join the leadership training program in response to question A, The formula to use for the problem is:
=IF(OR(D2>=2,G2>"Yes"), "Yes", "No")
What is an if and function?One of Excel's most useful features is the IF function. The finest aspect is that you may mix IF with other functions to boost its potency. One of the most beneficial formula combinations in Excel is IF and OR.
The IF AND excel formula allows the user to test several conditions utilizing AND functions by combining two different logical functions, which are frequently nested together. The IF function returns either "true" or "false" depending on the results of the AND function.
Note that by using the function above, one can be able to know if the value in the student's Post-Secondary Years column is greater than or equal to 2 OR if the value in the student's finance certified status is "Yes".
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Kathy is the chief marketing officer for a big law firm. After looking at the company's sales data, she recognizes that most of the cases her company represented were to clients who lived in the neighboring city. She decides she will boost advertisements in the neighboring city to increase their case numbers. What did Beth determine by looking at her company's sales data?
options:
1. Value proposition
2. Pricing
3. Target market
4. Revenue
Answer: 3. Target Market
Explanation:
A target market is a group of consumers or organizations most likely to buy a company's products or services. Because those buyers are likely to want or need a company's offerings, it makes the most sense for the company to focus its marketing efforts on reaching them. I also had this question :)
Answer:
it is target market just to confirm :D
why do some patient safety leaders believe the definition of harm should be broader than the definition in the ihi global trigger tool?
Because additional sorts of injury should be prevented than those covered by the current definition by health care systems.
The required details for health in given paragraph
Being in good health is defined as having complete bodily and mental wellbeing. People can access healthcare to help them keep their health at the optimal level. The US healthcare system cost an estimated $3.5 trillion in 2017, according to the Centers for Disease Control and Prevention (CDC). However, Americans have shorter lifespans than people in other industrialized countries, despite all of the money spent on healthcare. Access to healthcare and dietary preferences are just two of the factors contributing to this.
Being healthy is essential for living a longer, more active life and for controlling stress.
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Question 15 (1 point)
Astin is a software engineer who is creating a training manual for users of a meal
planning app. His coworker who is reviewing his work points out that he should
replace words like "full-stack" and "bootstrap" because they are considered what?
evidence
copy
vernacular
jargon
Question 16 (1 point!
Astin's coworker who is reviewing his work points out that he should replace words like "full-stack" and "bootstrap" because they are considered: D. jargon.
What is a word?In English language, a word can be defined as a unit of language which comprises one or more spoken sounds and alphabets (letters) that connotes an information about a thing, action, event, etc.
What are jargons?Jargons can be defined as a group of words or noun that are typically used to connote computers, definitions of terminologies, related topics, computing activities, and concepts.
In this context, we can reasonably infer and logically deduce that words such as "full-stack" and "bootstrap" should be replaced by Astin because they are considered as jargon.
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Answer:
Explanation:
i know it's is
Please use the above information to answer the following questions. Note down the multiples you calculated because they will be used for later questions. 15 What is the price-book (P/B) multiple?
I need help!!! offering (25 points)
Answer:
Explanation:
Doung need hot dog stand permit for his buisness which comes under special use permit as per other options like portable license the permit will work as a license and regulations and He is use his normal license as mobile cart license so the only thing he required is special use permit which will give allowance to his hot dog buisness.
explain, using a business example, why conflict may arise between two different business stakeholders
A typical business example of how conflict may arise between two different business stakeholders is when there are clash of interests. For instance, when the owners seek high profits, reluctant to see the business pay high wages to staff which made a business decision to move production overseas to reduce staff costs.
What is known as a conflict?Basically, a conflict refers to any serious disagreement and argument about something important, that is, when two people or groups are in conflict, they are said to have had a serious disagreement or non-conclusion about certain things.
The conflicting interests of stakeholders arises because different stakeholders have different objectives which some are stated below:
when owners want high profits and so may be reluctant to see the business pay high wages to staffwhen a business decision to move production overseas may reduce staff costs.All as mentioned above will benefit owners but work against the interests of existing staff who will lose their jobs as the customers might suffer if they receive a poorer service, the managers may want to pay for goods later to improve cash flow whereas the suppliers will want their payment as soon as possible etc.
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Many employees do not recognize ethical issues. What can be done in ethics training to help sensitize employees?
Using the ethics skills you learn from our ethics training program, you will be able to distinguish between morally right and wrong actions and behaviors in the workplace.
Training in ethics enables organization members to use moral principles and values in corporate decision-making by assisting them in evaluating the morality of their actions. Improve the workplace through your participation. ethics instances when work procedures should be enhanced to adhere to legal and ethical obligations. Actively communicate feedback to superiors and coworkers. Find opportunities to contribute to the revision and creation of policies and protocols and seize them. Ethics trainings are crucial to maintaining a strong corporate culture.
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When the nervousness about a situation outweighs the gain from the information, you're suffering:
An individual whose anxiousness about a circumstance outweighs the gain from the information is suffering from anxiety disorder.
Understanding anxiety disorders?When someone is affected socially, mentally or psychologically as a result of unexpected life situations, we say that they are affected by condition we refered to as anxiety disorders.
However, from the task content above, we have seen understood that this man was so much in a great shock when the information was brought to him which renders his mental health in difficulty.
So therefore, when a man, woman, young or even the old one suffers from anxiety disorder, they have been faced by shocking information will makes them suffers from anxiety disorder.
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When may a broker NOT place an earnest money deposit in his escrow
account?
As soon as an agent or a broker accepts an earnest money deposit on behalf of a seller, they become an escrow agent, and the money is placed in an escrow account.
So whenever a licensed real estate firm or an agent holds any earnest money, it must be deposited in a trust or escrow account until the closing. The earnest money deposit is said to be mandatory as the deposit gives buyers the time required to sort out their finances, conduct inspections, and evaluate investment, before a deal is closed.
However, if the buyer does not deposit the earnest money with the escrow agent within a reasonable time after contract execution, the buyer thus would be in default.
Hence, an escrow account is one which you fund each month.
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The US is in the late-cycle expansion phase with moderate recession risk.
Give me 3 reasons why.
The US is in the late-cycle expansion phase with moderate recession risk. Reasons why are
US growth is late-cycle. Even as the economy expands, the labor market is competitive, firms are reporting weaker profits, Inventories are high, interest rates are rising, and the yield curve is flatter than earlier in the cycle.This is further explained below.
What is late-cycle expansion?Generally, Late-cycle economies mature, inflationary pressures build, and the yield curve may flatten or invert. After a recession, monetary policy loosens.
As economic certainty fades, GDP slows, and monetary policy tightens, volatility increases late cycle.
Derivatives are particularly useful to investors seeking portfolio protection or profit during high volatility times like late-cycle and recessions.
In conclusion, The reason for this are
The United States of America is now in the late-cycle growth phase. Even while the economy is continuing to expand, The labor market is competitive, businesses are reporting lower profits, inventories are high, interest rates are on the rise, The yield curve is flatter than it was earlier in the cycle.Read more about late-cycle expansion
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how to make money fast?
Answer:
freelance gigs
Explanation:
Answer: obtain an occupation
Explanation: obtaining an occupation is maybe the easiest, fastest and most common way to obtain currency
What are the three writing guidelines to follow when writing a résumé?
The three rules or guidelines for making a resume are to write clearly and succinctly, to provide specific examples and numbers, and to use strong action verbs.
It provides information about your education, work history, and accomplishments with prior employers. It also includes information about your skills and training.
It should also clearly state your career objective, the position seeking, and the advantages you would bring to the company if hired.
To list their qualifications for a position, job applicants must create a formal document called a resume. A personalized cover letter with a resume typically expresses interest in a particular business and draws attention to the resume's most crucial details.
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What is an example of a fixed variable cost?
Answer: utility bill
Explanation: Fixed costs remain the same throughout a specific period. Variable costs can increase or decrease based on the output of the business. Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.
I believe your options choices was
car payment: is a fixed expensesgym membership dues: variable expensesrent: is a fixed expensesutility bill: variable fixed expense.Types of ExpensesVariable expenses; Expenses that vary from month to month (electriticy, gas, groceries, clothing).
Fixed expenses; Expenses that remain the same from month to month(rent, cable bill, car payment)
Intermittent expenses; Expenses that occur at various times throughout the year and tend to be in large amounts(tuition payment, car repairs)
Discretionary; (non-essential) expenses.
Answer:
fixed
Explanation:
which country, Brazil or Australia, would you choose to introduce your product? Why?
Explanation:
.With the fifth-largest population in the world and a rapidly expanding middle class (as is the case throughout the entirety of Latin America), Brazil has a sizable consumer market.
. The size and diversity of the Brazilian consumer market have given rise to a wide range of intriguing business opportunities for foreign companies seeking to expand their clientele there.
.Brazil has first-rate transportation and infrastructure, unlike some of its neighbors.
.Whereas, The favorable economic situation of Australia may be one of the factors for establishing a business there.
. All business owners prefer a somewhat stable environment when operating their own company, which is created by having a strong and healthy economy.
.The procedure for setting up your business banking with Australian financial institutions is quite simple.
. Australia's consumer market too is great where people are consuming 80% more than their needs.
The process of , or identifying problems and opportunities and then resolving them, involves effort both before and after choosing a course of action. You are a senior manager, and you are mentoring a new manager. You want to emphasize to the new manager that being effective in his job will depend on sound decision making. What reasons will you give?
a. Managerial decisions are made in isolation from one another, so every decision must be correct.
b. Decisions determine whether the organization allocates resources effectively.
c. Ultimately, whether the organization meets its goals depends on a series of many decisions.
d. Decision making determines how the organization solves problems.
The method of, or figuring out troubles and opportunities after which resolving them, involves effort both before and after choosing a direction of motion. You are a senior manager, and you are mentoring a new manager : d. decision-making determines how the enterprise solves issues.
The role of managers is to establish and oversee a specific group, project, or area within an enterprise. The volume and scope of a manager's duties can range relying on their function in the organization. The job name of the supervisor can suggest that any individual is coping with a team or handling a sure feature.
A manager is an individual inside an employer who is in charge of coordinating the efforts of people or the allocation of assets. As such, a supervisor is one who undertakes management sports. Managers come updated with super updated communicate-to-daters with the aid of being the right listeners. They allow time for others up-to-date. they have a clear know-how of the organization's image and are prescient and percentage it with the human beings of their team in a way that motivates them.
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Discussion Questions
1. Sharp's Sandwich Shop has two conflicting quality issues-speed and freshness. The
premade sandwich system enhances speed; however, it has the potential of affecting
freshness. What type of system can Dawn implement that will enable her to keep
the process of premade sandwiches, yet guarantee that freshness will be unaffected?
Explain how the system would work and why it can effectively enable her to accomplish
both goals without any concern that one or the other must suffer.
Dawn will use Kanban to maintain the prefabricated sandwich process and ensure that freshness is not compromised.
Describe Kanban.A well-liked framework for implementing agile and Develops software development is Kanban. It necessitates complete transparency of work and real-time capacity communication. Team members can always observe the status of every piece of work thanks to the visual representation of work items on a Kanban board. Kanban is a process management technology that manages the flow of production from client orders back to the warehouse and visually displays each job's progress on a company's radar.
What makes them a part of lean systems?In its most basic form, Kanban is a method for an organization to visually monitor its work flow. Utilizing Kanban makes it simpler to maintain efficiency and assists in swiftly identifying (and resolving) work flow issues. The fundamental tenet of Kanban is that the flow of work is shown on a sizable board with several columns.
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people with the ______ style of decision making are action oriented and like to focus on facts. they also tend to be autocratic-type managers.
People with the directive style of decision making are action oriented and like to focus on facts. they also tend to be autocratic-type managers. An autocratic management style is one in which only one person makes all the decisions and solicits very little feedback from the rest of the group.
Autocratic leaders make decisions or choices based on their own beliefs and do not consult or seek input from others. An autocratic manager or leader may make decisions without consulting others' viewpoints, act rapidly, and adjust focus strategies. Team members' productivity may consequently rise and their stress levels may the decline.
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Five Card Draw manufactures and sells 23,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $210. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $25 per hour, and Five Card Draw estimated 222,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $666,000. Five Card Draw uses the traditional allocation method based on direct labor hours.
A. What is the gross profit per unit for Diamonds and Clubs?
B. What is the total gross profit for the year?
1. The computation of the gross profit per unit for Five Card Draw is as follows:
Diamonds Clubs
Gross profit per unit $43 $40
Total gross profit $989,000 $1,040,000
2. The total gross profit for Five Card Draw for the year is $2,029,000.
What is the gross profit?The gross profit is the difference between the sales revenue and the cost of goods sold.
The cost of goods sold by a manufacturing company is made up of direct costs (materials and labor) and some overhead costs.
Diamonds Clubs
Production and Sales Units = 23,000 units 26,000 units
Retail price per unit = $180 $210
Direct materials cost per unit $25 $30
Labor rate per hour $25 $25
Direct labor hours 4 5
Direct labor costs per unit $100 $125
Total estimated overhead = $666,000
Total estimated direct labor hours = 222,000
Overhead rate per DLH = $3 ($666,000/222,000)
Overhead cost per unit $12 $15 (5 x $3)
Total unit costs:
Direct materials cost per unit $25 $30
Direct labor costs per unit $100 $125
Overhead cost per unit $12 $15
Total unit costs $137 $170
Retail price per unit $180 $210
Gross profit per unit $43 $40 ($210 - $170)
Total gross profit $989,000 $1,040,000
= $2,029,000 ($43 x 23,000 + $40 x 26,000)
Thus, for the year, Five Card Draw will record a total gross profit of $2,029,000.
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