Entries by Hannah Wangui

33) What is the total annual fixed cost for a $45,000 tractor with a 12‑year life and a $9,000 salvage value, when insurance and taxes are 2 percent of average value and there is a 9 percent opportunity cost on capital? What is the average fixed cost per hour if the tractor is used 400 hours per year? If it is used 700 hours per year? Average annual depreciation = Average value = Average annual interest cost = Average annual insurance and taxes = Total annual fixed (ownership) cost= Average fixed cost per hour at 400 hours per year= Average fixed cost per hour at 700 hours per year= for a $45,000 tractor with a 12‑year life and a $9,000 salvage value, when insurance and taxes are 2 percent of average value and there is a 9 percent opportunity cost on capital? What is the average fixed cost per hour if the tractor is used 400 hours per year? If it is used 700 hours per year? Average annual depreciation = Average value = Average annual interest cost = Average annual insurance and taxes = Total annual fixed (ownership) cost= Average fixed cost per hour at 400 hours per year= Average fixed cost per hour at 700 hours per year=

August 14, 2019 in /by

3)        What is the total annual fixed cost for a $45,000 tractor with a 12‑year life and a $9,000 salvage value, when insurance and taxes are 2 percent of average value and there is a 9 percent opportunity cost on capital?  What is the average fixed cost per hour if the tractor is used 400 hours per […]

 

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Assume that a self‑propelled windrower has annual fixed costs of $7,150 and variable costs of $4.25 per acre. A custom operator charges $8.60 per acre. What is the break‑even point in acres per year?

August 14, 2019 in /by

 Assume that a self‑propelled windrower has annual fixed costs of $7,150 and variable costs of $4.25 per acre. A custom operator charges $8.60 per acre. What is the break‑even point in acres per year?   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Question 1. Assume that owning and operating a certain machine to till 850 acres results in an ownership cost of $5,000 per year plus operating costs of $5.00 per acre including labor. Leasing a machine with a field capacity of 5.0 acres per hour to do the same work would cost $40 per hour, plus the same operating costs. Hiring the work done on a custom basis would cost $12 per acre. Which alternative has the lowest total cost?Leasing a machine with a field capacity of 5.0 acres per hour to do the same work would cost $40 per hour, plus the same operating costs. Hiring the work done on a custom basis would cost $12 per acre. Which alternative has the lowest total cost?

August 14, 2019 in /by

Question 1.   Assume that owning and operating a certain machine to till 850 acres results in an ownership cost of $5,000 per year plus operating costs of $5.00 per acre including labor. Leasing a machine with a field capacity of 5.0 acres per hour to do the same work would cost $40 per hour, plus the […]

 

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.On January 1 of the current year (Year 1), our company acquired a truck for $75,000. The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 and 27,000 miles in Year 2. What is the depreciation expense for the second year of use (Year 2) if we use the units of production method? $14,000 $15,400 $16,800 $18,900 2.On January 1, our company purchased a truck for $85,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $5,000. What is the depreciation expense for the second year of use if we use the double-declining balance method? What is the balance in accumulated depreciation at the end of the second year of use if we use the double-declining balance method? What is the book value at the end of the second year of use if we use the double-declining balance method. 3.On January 1, our company purchased a truck for $80,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $10,000. What is the depreciation expense for the third year of use if we use the straight-line method? $17,500 $20,000 $35,000 $52,500 4.Our company uses the percentage of receivables method to estimate bad debt expense for the year. We had the following account balances on our unadjusted trial balance at the end of the year (December 31): accounts receivable, debit balance of $150,000; allowance for bad debts, debit balance of $1,000. We estimate that 3.5% of accounts receivable at the end of the year are uncollectible. What amount will be debited to bad debt expense when we record the adjusting entry? $4,000 $4,250 $5,250 $6,250 5.Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a credit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What amount will be debited to bad debt expense when we record the adjusting entry? 3,000 $4,000 $5,000 $6,000 The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 and 27,000 miles in Year 2. What is the depreciation expense for the second year of use (Year 2) if we use the units of production method? $14,000 $15,400 $16,800 $18,900 2.On January 1, our company purchased a truck for $85,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $5,000. What is the depreciation expense for the second year of use if we use the double-declining balance method? What is the balance in accumulated depreciation at the end of the second year of use if we use the double-declining balance method? What is the book value at the end of the second year of use if we use the double-declining balance method. 3.On January 1, our company purchased a truck for $80,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $10,000. What is the depreciation expense for the third year of use if we use the straight-line method? $17,500 $20,000 $35,000 $52,500 4.Our company uses the percentage of receivables method to estimate bad debt expense for the year. We had the following account balances on our unadjusted trial balance at the end of the year (December 31): accounts receivable, debit balance of $150,000; allowance for bad debts, debit balance of $1,000. We estimate that 3.5% of accounts receivable at the end of the year are uncollectible. What amount will be debited to bad debt expense when we record the adjusting entry? $4,000 $4,250 $5,250 $6,250 5.Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a credit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What amount will be debited to bad debt expense when we record the adjusting entry? 3,000 $4,000 $5,000 $6,000

August 14, 2019 in /by

.On January 1 of the current year (Year 1), our company acquired a truck for $75,000. The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 […]

 

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