queenpaige2015
14.08.2020 •
Business
Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $4 per vehicle. For the month of November, the company planned for activity of 94 vehicles, but the actual level of activity was 54 vehicles. The actual materials and supplies for the month was $2,250. The materials and supplies in the planning budget for November would be closest to:
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Ответ:
$2366
Explanation:
Given the following :
Cost formular for Cadavieco for its material and supplies is $1,990 per month plus $4 per vehicle.
That is :
Cost formular : 1990 + 4x
Where 1990 is the fixed cost
4x is the variable cost which depends on x, number of vehicles.
In November :
Planned activity = 94 vehicles
Actual activity : 54 vehicles
Therefore, materials and supplies in planning budget for November :
Fixed cost + 4(planned activity)
$1990 + $4(94)
$1990 + $376
= $2366
Ответ:
Remeasurement loss of $21,970
Explanation:
The figures will have to be converted from Euros to US$ for the calculation.
The relevant exchange rate will be the rate on the date of the transaction.
Amount Exchange rate $Amount
Opening cash 528,000 1.14 601,920
Increase in Cash assets:
Sale of inventory 160,000 1.20 192,000
688,000 793,920
Decrease in cash assets:
Acquisition of warehouse 300,000 1.14 (342,000)
Purchase of inventory 100,000 1.18 (118,000)
Transfer to parent 10,000 1.18 (11,800)
Ending net cash assets 278,000 322,120
Remeasurement gain(loss) at 31 December = Ending net cash assets at current rate - Ending net cash assets
= (278,000 * 1.08) - 322,120
= 300,240 - 322,120
= ($21,970)
Options are not for this question.