Answer: centralization
Explanation:
When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to centralize.
Centralization is simply when an organizational activities especially those that has to do with decision making, planning, framing policies and strategies are all concentrated in a particular location group.
An effective goal program has goals that are specific, consistent, and appropriately challenging. What is missing?
Answer:
Feedback
Explanation:
In an effective goal program, feedback is very important and essential. The goals should be open for feedback. If the goals are specific, consistent but lack feedback, then it is no longer effective.
Feedback is important in order to evaluate how effective the goal is. So, in the above, feedback is what is missing.
In organizations where a majority of workers perform repetitive operations there is often a lack of job security. singular purpose. a management hierarchy. administrative oversight.
Answer:
singular purpose.
Explanation:
In organizations where a majority of workers perform repetitive operations there is often a singular purpose.
Generally, when an organization lacks overall mission and vision, it usually results in the repetition of tasks or lack of engagement among its employees. This ultimately implies that, defining the mission and vision statement of an organization is necessary in order to achieve more, create tasks for various employees and break even in business.
The term that describes a situation whereby majority of workers perform repetitive operations in an organization is singular purpose.
In an organization where is no vision , singular purpose will definitely be occurring, this is when there is repetitive operations by the workers.In this organization, the job security of the workers are not guaranteed because the company herself can even shutdown at any timeTherefore option A is correct.
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g The financial friction: Group of answer choices is equal to zero when the economy is in its long-run equilibrium.
Complete Question:
The financial friction:
O is equal to zero when the economy is in its long-run equilibrium.
O is negative in Japan.
O lowers the borrowing rate below the nominal federal funds rate.
O is equal to the rate of inflation.
O is lower in uncertain economic situations.
Answer:
The financial friction:
O is equal to zero when the economy is in its long-run equilibrium.
Explanation:
Financial friction is the difficulty that one encounters in financial transactions. It includes the total time, effort, money, and tax effects of the process of gathering information and concluding a transaction such as the buying of a stock or the borrowing of money.
When an economy is in the long-run equilibrium it naturally implies that aggregate demand equals aggregate supply. And at this equilibrium, the long-run marginal cost curve is equal to the long-run average cost curve. There is, therefore, no profit or loss. Financial friction representing the cost of making a transaction equals zero because the suppliers of economic activities will not make any profit or loss.
Sandy works for RigorMart. She supervises regional managers and directs them based on orders from the board of directors. Sandy’s position also entitles her to stock ownership in the company. What is Sandy’s position in the company?
Answer:
Executive and shareholder
Explanation:
Since in the question it is mentioned that Sandy supervises the regional managers also she directed them. Moreover, it is entitled her for the ownership of stock in the company
She is not a director so she is an executive also she has the stock ownership so she is also a shareholder
So the sandy position in the company is of executive and the shareholder
I am having a diffiucult time figuring out the advertising expense. I have plugged in several solutions and they are all incorrect.
Listed below are several transactions that took place during the second and third years of operations for RPG Company.
Year 2 Year 3
Amounts billed to customers for services rendered $ 320,000 $ 420,000
Cash collected from credit customers 230,000 370,000
Cash disbursements:
Payment of rent 77,000 0
Salaries paid to employees for services rendered during the year 137,000 157,000
Travel and entertainment 27,000 37,000
Advertising 13,500 32,000
In addition, you learn that the company incurred advertising costs of $24,000 in year 2, owed the advertising agency $4,900 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.
Required:
1. Calculate accrual net income for both years.
2. Determine the amount due the advertising agency that would be shown as a liability on RPG’s balance sheet at the end of year 2.
Answer:
RPG Company
1. Accrual Net Income for Year 2 and Year 3:
Year 2 Year 3
Amounts billed to customers for services $ 320,000 $ 420,000
Expenses:
Rent 38,500 0
Salaries paid to employees for services 137,000 157,000
Travel and entertainment 27,000 37,000
Advertising 24,000 16,600
Net Income $93,500 $170,900
2. Determination of the liability for Advertising:
Advertising Expense:
Year 1 balance = $4,900
Year 2 = $24,000
Cash paid (13,500)
Balance $15,400
Explanation:
a) Data and Calculations:
RPG Company.
Year 2 Year 3
Amounts billed to customers for services $ 320,000 $ 420,000
Cash collected from credit customers 230,000 370,000
Cash disbursements:
Payment of rent 77,000 0
Salaries paid to employees for services 137,000 157,000
Travel and entertainment 27,000 37,000
Advertising 13,500 32,000
Year 2 Year 3
Service Revenue: $ 320,000 $ 420,000
Accounts Receivable
Service revenue $320,000
Cash collected 230,000
Balance Year 2 $90,000
Service revenue 420,000
Cash collected 370,000
Balance Year 3 $50,000
Advertising Expense:
Year 1 balance = $4,900
Year 2 = $24,000
Cash paid (13,500)
Balance $15,400
Year 3 = 16,600
Cash paid 32,000
Balance 0
A year of unusually good rainfall has made it cheaper to irrigate farmlands. However, a popular new diet has persuaded some consumers to stop eating vegetable oil, a product often made from canola. What impact have these two changes had on the equilibrium price and quantity sold of canola?
Answer:
1)Price has decreased and the effect on quantity cannot be determined
Explanation:
As of good rainfall there is a rise in supply of canola that means the shifting o feh supply curve could be right also the demanded for the vegetable oil would decline that means the demand is falling so the demand curve would shift to the left
Therefore, the equilibrium would fall but it is unable to figure out whether the quantity would rise or not without considering the elasticities of the demand and the supply curve
Hence, the correct option is 1
Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter. Finished goods inventory, June 1 $64,900 $18,800 (e) Cost of goods manufactured 331,000 (c) 65,800 Cost of finished goods available for sale (a) $178,600 $103,400 Finished goods inventory, June 30 76,800 37,500 (f) Cost of goods sold
Answer;
Cost of goods manufactured = Cost of finished goods available for sale - Beginning inventory of finished goods.
Cost of goods sold = Cost of finished goods available for sale - Ending finished goods
a. Cost of goods manufactured = Cost of finished goods available for sale - Beginning inventory of finished goods.
331,000 = a - 64,900
a = 331,000 + 64,900
= $395,900
b. Cost of goods sold = Cost of goods manufactured - Ending finished goods
b = 395,900 - 76,800
= $319,800
c. Cost of goods manufactured = Cost of finished goods available for sale - Beginning inventory of finished goods.
c = 178,600 - 18,800
= $159,800
d. Cost of goods sold = Cost of finished goods available for sale - Ending finished goods
d = 178,600 - 37,500
= $141,100
e. Cost of goods manufactured = Cost of finished goods available for sale - Beginning inventory of finished goods.
65,800 = 103,400 - e
e = 103,400 - 65,800
= $37,600
f. Cost of goods sold = Cost of finished goods available for sale - Ending finished goods
- missing figure (ending finished goods).
Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.
Description Economies Economies
of Scale of Scope
Long-run average costs are lower for greater quantities
of output.
The cost of producing two products separately is greater
than the cost of producing both of those goods jointly.
Answer and Explanation:
The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods
While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time
Based on this, the classification is as follows
1, Economics of scale as the output rises that declines the LAC so automatically it goes downward
2. economics of scope
Difference between information desired and information provided is:_______.
a. sampling error.
b. measurement error.
c. frame error.
d. random error.
Answer:
b. measurement error.
Explanation:
Measurement error is defined as the difference in the provided information and the desired information. It is also known as observational error. The value that is measured and the real value that brings out the differences. These errors can emerge and grow rapidly. Random error and systematic error are the two distinct parts of measurement errors.
The outstanding bonds of Tech Express have a face value of $1,000 and mature in 10 years. They are currently priced at $989. These bonds have a 6 percent coupon and pay interest annually. Ten-year Treasury bonds are currently yielding 3.4 percent. If the firm’s tax rate is 28 percent, what is the firm's after-tax cost of debt? (round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)
Answer:
the firm's after-tax cost of debt is 4.43 %.
Explanation:
Cost of Debt is the return required by providers of debt capital to the company.
First Determine the yield of the Tech Express bonds, r
Pv = - $989
pmt = $1,000 × 6.00 % = $60
p/yr = 1
n = 10
Fv = $1,000
r = ?
Using a Financial Calculator, the yield of the Tech Express bonds, r is 6.1505 %.
Therefore,
Cost of Debt = Interest × ( 1 - tax rate)
= 6.1505 % × ( 1 - 0.28)
= 4.43 %
Which one of the below is the MAJOR responsibility of a businessperson:
A) Making as much money as possible to distribute in dividends to stockholders
B) Making the value of the company increase by generating increasing revenues and profits
C) Making as little income as possible that is taxable in order to minimize the government's cut
D) Making sure the company is legally compliant with all reporting and other regulatory requirements
E) Making as much money as possible for the employees to share in salary, bonus and benefits
Answer:
B) Making the value of the company increase by generating increasing revenues and profits
Explanation:
The main responsibility of a manager is to increase the company's value in order to increase the wealth of its owners. Of course this should be done in a legal way, e.g. a drug lord that makes millions can't be considered a good businessperson. The responsibility of a manager do not end there, they also have a duty with all the stakeholders of the company, starting with the employees, the government, the environment, their customers, and society as a whole.
At January 1, 2019, Vaughn Manufacturing has beginning inventory of 2000 surfboards. Vaughn estimates it will sell 7000 units during the first quarter of 2019 with a 12% increase in sales each quarter. Vaughn’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2019? g
Answer:
Sales revenues= $1,317,150
Explanation:
Giving the following information:
Vaughn estimates it will sell 7000 units during the first quarter of 2019 with a 12% increase in sales each quarter.
Selling price= $150
First, we need to calculate the number of units to be sold in the third quarter:
Sale in units= 7,000*1.12^2= 8,781
Now, sales revenues:
Sales revenues= 8,781*150
Sales revenues= $1,317,150
In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the five forces model of competition.a. a reduction of the airlines' abilities to enjoy economies of scaleb. an increase in switching costs because the airlines have no choice but to use jet fuel and other oil productsc. an increase in the bargaining power of suppliers of a critical inputd. an increase in the intensity of rivalry among airlines for scarce resources
Answer:
In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the five forces model of competition.
c. an increase in the bargaining power of suppliers of a critical input
Explanation:
When the fuel providers consolidate their businesses, they increase their bargaining power. The airlines' bargaining power has been reduced with the consolidation. While it is easier to negotiate with a single service or product provider, the divide and rule approach which the airlines can employed has been eroded with the consolidation. The fuel supplier, as one organization, is able to determine prices and available of this critical resource for the airlines.
Sheryl Sandburg is one of the best known women in business today. Her accomplishments have illustrated the capacity of women to manage complex organizations in a manner that is equal to that of a man. What has her success revealed in regard to stereotyping and diversity?
Answer and Explanation:
With regards to stereotyping and diversity, Sheryl has revealed to everyone that women have a lot of potentials and can do much more than people expect of them. She has proven that people should be regarded based on merits, the experience they possess, their education and not based on factors such as race, their gender, were they are from or religion.
She has efficiently run the company as well as managing her family and profession. She has proven that diversity is good for a corporate world as it makes a business grow, and companies benefit from diversity.
Madison Corporation purchased 40% of Jay Corporation for $460,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $115,000. At year-end, Jay Corporation reported net income of $575,000. The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be:___________.
a. $736,000.
b. $644,000.
c. $851,000.
d. $276,000.
e. $460,000.
Answer:
b. $644,000.
Explanation:
we must use the equity method:
January 1, 202x
Dr Investment in Jay Corporation 460,000
Cr Cash 460,000
June 30, 202x, cash dividends declared (and probably paid for sometime in the near future)
Dr Dividends receivable 46,000
Cr Investment in Jay Corporation 46,000
December 31, 202x, net income reported
Dr Investment in Jay Corporation 230,000
Cr Investment revenue 230,000
balance = $460,000 - $46,000 + $230,000 = $644,000
A firm has a managerial cost of $120 and charges a price of $40. the lerner index for this firm is:_______A. 0.20. B. 0.50. C. 0.33. D. 0.75.
Answer:
B. 0.50
Explanation:
Lerner index = (price - marginal cost) / price
I guess that the question wasn't copied correctly, since it shouldn't say managerial costs, instead it should say marginal costs. And to be honest, marginal costs should either be $10 or $20, not $120 if the sales price is only $40.
Assuming a marginal cost of $20, then the Lerner index = ($40 - $20) / $40 = $20 / $40 = 0.5
The Lerner index measures the markup over marginal costs.
Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per year. The required return is 30%. What is the intrinsic value of the stock?
Answer:
Intrinsic value of the stock = $46.67
Explanation:
D1 = $7
Required return = 30%
Growth rate = 15%
Intrinsic value of the stock = D1 / (Required return - Growth rate)
Intrinsic value of the stock = $7/(0.3 - 0.15)
Intrinsic value of the stock = $7 / 0.15
Intrinsic value of the stock = $46.67
Consider the following per unit data for Jennifer Company, a seller of tables and chairs: What is the weighted-average unit contribution margin for Jennifer Company?
Answer:
$28 per unit
Explanation:
since the information is missing, I looked for similar questions:
contribution margin per chair = $50 - $35 = $15
contribution margin per table = $200 - $120 = $80
sales mix: 4 chairs + 1 table
contribution margin per sales mix = (4 x $15) + $80 = $140
weighted average contribution margin = $140 / 5 = $28
The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: The stage of the sales life cycle the product is in is:
Complete Question:
The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: Item This Year Change Over Last Year Average Annual Change Over the Last Four Years Annual sales $3,200,000 -2.4% +3.5% Unit sales price 500 -2.1% +3.3% Unit profit 100 -10.0% +2.0% Total profit 700,000 -1.2% +3.0% The stage of the sales life cycle the product is in is:
Answer:
Jang Manufacturing Co.
The stage of the sales life cycle the product is in is:
The introduction stage.
Explanation:
a) Life-Cycle Analysis of the Leaf Blower:
Item This Year Change Average Annual Change
Over Last Year Over the Last Four Years
Annual sales $3,200,000 -2.4% +3.5%
Unit sales price 500 -2.1% +3.3%
Unit profit 100 -10.0% +2.0%
Total profit 700,000 -1.2% +3.0%
b) The sales life cycle is a series of sales steps that the seller takes in order to convert a customer to make a buying decision. It starts with the introduction stage when the seller creates customer awareness. At this stage of the sales life cycle, the product can be likened to a potential STAR. Like Stars with potential, the initial sales efforts can eventually grow to become successful customer closes.
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.6%. What is the new price of the bond
Answer:
$880.31
Explanation:
For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Assuming Future value = $1,000
Rate of interest = 8.6% ÷ 2 = 4.3%
NPER = 8 years × 2 =
PMT = $1,000 × 6.5% ÷ 2 = $32.5
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $880.31
The following information pertains to Zion Company’s defined benefit pension plan:_______.
Net Pension liability, January 1, Year 1 $2,000
Service cost $17,000
Interest cost $40,000
Actual and expected retum on plan assets $22,000
Amortization of prior service cost arnising in a prior period $52,000
Employer contributions $40,000
In its December 31, Year 1, balance sheet, what amount should Zion report as the Net Pension Asset/Liability?
a. $7,000 asset
b. $15,000 liability
c. $45,000 liability
d. $52,000 liability
e. $5,000 asset
Answer:
c. $45,000 liability
Explanation:
Fair Value of Plan Asset = Return on asset + employer contribution - Benefit paid
= $22,000 + $40,000 - $0
= $62,000
Projected Benefits Obligation = Service cost + interest cost
= $17,000 + $40,000
= $57,000
Pension asset / (liability) = Opening pension asset/ Liability + Plan asset - Projected Benefit Obligation - Amortization
= $2,000 + $62,000 - $57,000 - $52,000
= -$45,000
= $45000 Pension Liability
One role of marketing communications in the problem recognition stage of the purchase decision-making process is to:
Answer: help distribution partners identify product availability problems.
Explanation:
The options are:
a. alert the company about problems in conveying a message to target consumers.
b. resolve consumer problems with customer service outreach.
c. remind consumers of existing needs.
d. help distribution partners identify product availability problems.
e. educate consumers about features and benefits.
One role of marketing communications in the problem recognition stage of the purchase decision-making process is to help distribution partners identify product availability problems.
It should be noted that marketing communications can help identify the needs or problem that consumers have.
Identify the expanding capabilities of mobile phone and passenger processing applications to the industry.
Explanation:
Consider they enable the following:
1. It provides convenient services
2. It is flexible to the needs of passengers
3. It disseminates information faster
Why might these sources of individual values not prove very helpful when making complex business decisions
Answer:
The first part of the question is missing:
"We all learn values from sources such as family, religion, and school. Why might these..."
To be honest, most of the time business decisions are not clean cut ethical or unethical, even if you are not doing anything wrong or illegal. When you are doing business you will try to make the largest possible profit and money doesn't just appear from no where, if you earn money, you will be taking it away from someone else. In the best case scenario, you will be giving that customer a higher perceived value than the cost of your product or service, so everyone wins.
But many times, not everyone wins. E.g. you manage a construction company and you will bid for a project, hopefully you will win and make money, but others will lose. Empathy is good for marketing, but very bad for finances.
When thousands of jobs are replaced not by Chinese workers, but instead by computers and robots, it's just bad luck for the unemployed. When large stores like Sears go bankrupt while Amazon surges, good for Amazon, bad for Sears.
at advice would you provide on mistakes and biases to avoid when selecting employees for available jobs? 10mks
Answer:
Explanation:
Avoid being biased, no matter the situation.
Favoritism should not be the order of the day, as you may end up employing a non chalant person.
Make sure they're are screened well enough and none is telling a lie.
It is wise to do background checks before employing them.
And as always, employ the best of the best so as to have optimum output.
Hire only qualified personnels, you don't want to tarnish your reputation
Market failure can be caused by low consumer demand. externalities and market power. equilibrium prices. high prices and foreign competition.
Answer:
Externalities and market power.
Explanation:
Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market.
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation
When a firm has market power, he usually sell above equilibrium price so that there is no equilibrium in the market. This can lead to inefficiency and market failure
why is it necessary to maintain a fixed asset register and what does it enable you to do?
Answer:
There is financial consequence to not maintaining an accurate asset register. Every business should know at any given time where their assets are and in what condition they are in. The tracking of assets can prevent theft and loss and the maintenance of assets can extend the life of the asset. There are major tax benefits to any business tracking their assets correctly. In most cases it is a statutory requirement to have an asset register.
Explanation:
" If a 1 percent increase in price results in less than a 1 percent decrease in quantity demand, demand is: "
Answer:
inelastic
Explanation:
when we are measuring hte price elasticity of demand (PED), we calculate it by dividing the ]% change in quantity by the % change in price.
If the price of a product increases by 1%, and the quantity demanded changes in a smaller %, the PED is < 1, so it is inelastic. If the price of a product increases by 1%, and the quantity demanded changes in a larger %, the PED is > 1, so it is elastic. If the price of a product increases by 1%, and the quantity demanded changes in same 1%, the PED is = 1, so it is unit elastic.The minimum wage is an example of a Group of answer choices price ceiling. price door. price wall. price floor.
Answer:
price floor
Explanation:
A price ceiling is a limit that is established by the government that determines the highest price that can be charged for a product or service.
A price floor is a control that is established by the government that determines the lowest price for a product or service.
According to this, the answer is that the minimum wage is an example of a price floor because it determines the minimum amount that a company can pay to a worker.
The other options are not right because a price ceiling establishes the highest price for a product and price door and price wall are not price controls.
Calculate total manufacturing overhead costs. First determine the formula, then calculate the total manufacturing overhead costs. (Enter currency amounts in thousands and not in dollars.) Total manufacturing + + = overhead costs
Answer:
1.
a. Airplane seats is classified as Direct material $220
b. Production supervisors' salaries is classified as Indirect Labour $100
c. Depreciation on forklift is classified as Other Manufacturing Overhead $30
d. Machine lubricants classified as Indirect Material $40
e. Factory janitors' wages classified as Indirect labour $35
f. Assembly workers' wages classified as Direct Labour $650
g. Property tax on corporate marketing offices classified as Period total $15
h. Plant utilities classified as other Manufacturing Overhead $190
I. Cost of warranty repairs classified as Period total $245
j. Machine operators' health insurance classified as Direct Labour $60
k. Depreciation on administrative offices classified as Period total $20
l. Cost of designing new plant layout classified as Period total $180
m. Jet engines classified as Direct material $1,700
1b.Total
Total Direct material $1,920
Total Direct labor $710
Total Indirect material$40
Total Indirect labor $135
Total Other Manufacturing Overhead $220
Total Period Total $460
2.Total manufacturing overhead costs $395
3.Total inventoriable product costs $3,025
4.Total prime costs $2,630
5.Total conversion costs $1,105
6.Total period costs $460
Explanation
1. Classification of each cost and the total for each type of cost
a. Airplane seats is classified as Direct material of the amount of $220
b. Production supervisors' salaries is classified as Indirect Labour of the amount of $100
c. Depreciation on forklift is classified as Other Manufacturing Overhead of the amount of $30
d. Machine lubricants classified as Indirect Material of $40
e. Factory janitors' wages classified as Indirect labour of $35
f. Assembly workers' wages classified as Direct Labour of $650
g. Property tax on corporate marketing offices classified as Period total of $15
h. Plant utilities classified as other Manufacturing Overhead of $190
I. Cost of warranty repairs classified as Period total of $245
j. Machine operators' health insurance classified as Direct Labour of $60
k. Depreciation on administrative offices classified as Period total of $20
l. Cost of designing new plant layout classified as Period total of $180
m. Jet engines classified as Direct material of $1,700
TOTAL for each of the costs
Total Direct material $1,920
($220+$1,700)
Total Direct labor $710
($650+$60)
Total Indirect material$40
Total Indirect labor $135
($100+$35)
Total Other Manufacturing Overhead $220 ($30+$190)
Total Period Total $460
($15+$245+$20+$180)
2.Calculation for the of the total manufacturing overhead costs
Using this formula
Manufacturing overhead costs=Indirect labor + Indirect materials + Other Manufacturing overhead
Let plug in the formula
Total manufacturing overhead costs=
$135 + $40 + $220
Total manufacturing overhead costs= $395
3.Calculation for the total inventory product costs.
Using this formula
Total inventoriable costs=Direct materials + Direct labor + Manufacturing overhead
Let plug in the formula
Total inventoriable product costs$1,920 + $710 + $395
Total inventoriable product costs= $3,025
4.Calculatation for total prime costs.
Using this formula
Prime costs=Direct materials + Direct labor
Prime costs=$1,920 + $710
Total prime costs=$2,630
5.Calculation for the total of the conversion costs.
Using this formula
Total conversion costs=Direct labor + Manufacturing overhead
Total conversion costs=$710 + $395
Total conversion costs= $1,105
6. Calculation for total period costs.
Using this formula
Total period costs=($15+$245+$20+$180)
Total period costs=$460
Property tax on corporate marketing offices classified as Period total of $15
Cost of warranty repairs classified as Period total of $245
Depreciation on administrative offices classified as Period total of $20
Cost of designing new plant layout classified as Period total of $180