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Units produced and sold: 48,000; Direct materials ($3/kg): $298,000; Direct labour ($4/hr): $240,000; Fixed selling costs: $150,000; Variable selling costs: $24,000. Fixed production overheads absorbed at $10 per labour hour. What is the total absorption cost per unit?
Option B ($23.71) is correct.
Labour hours = $240,000 ÷ $4 = 60,000 hours
Fixed production overhead = 60,000 × $10 = $600,000
Total production cost = $298,000 + $240,000 + $600,000 = $1,138,000
Absorption cost per unit = $1,138,000 ÷ 48,000 = $23.71
Who authored the famous political treatise 'The Republic'?
Plato's 'The Republic' explores justice and the concept of the Philosopher King.
How many integers greater than $6000$ can be formed using the digits $3, 5, 6, 7, 8$ without repeating any digit?
Numbers greater than 6000 can be 4-digit or 5-digit.
5-digit numbers: All arrangements of 5 digits $= 5! = 120$.
4-digit numbers $> 6000$: The leading digit must be $6, 7,$ or $8$ (3 choices). Remaining 3 positions filled from 4 remaining digits: $3 \times 4 \times 3 \times 2 = 72$.
Total $= 120 + 72 = \mathbf{192}$
Given: Quick (acid-test) ratio $= 2.0$; Current assets $= \text{Rs. }5{,}000$; Inventory $= \text{Rs. }2{,}000$; Prepaid expenses $= 0$. Find the value of current liabilities.
The Quick Ratio formula is:
$\text{Quick Ratio} = \dfrac{\text{Current Assets} - \text{Inventory} - \text{Prepaid Expenses}}{\text{Current Liabilities}}$
$2.0 = \dfrac{5{,}000 - 2{,}000 - 0}{\text{CL}} = \dfrac{3{,}000}{\text{CL}}$
$\text{CL} = \dfrac{3{,}000}{2.0} = \mathbf{Rs.\ 1{,}500}$
The quick ratio excludes inventory and prepaid expenses from current assets since these are less liquid. Dividing quick assets by the ratio gives current liabilities.
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