Option D. Contact the retailer who sold the product.
Answer:
activitity rate:
![\left[\begin{array}{ccccc}$Activity&$Driver&$cost&$Total&$Rate\\$Machine Setups&setups&72,000&400&180\\$Special processing&$machine hours&200,000&5,000&40\\$General factory&$direct labor hours&816,000&24,000&34\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26%24Driver%26%24cost%26%24Total%26%24Rate%5C%5C%24Machine%20Setups%26setups%2672%2C000%26400%26180%5C%5C%24Special%20processing%26%24machine%20hours%26200%2C000%265%2C000%2640%5C%5C%24General%20factory%26%24direct%20labor%20hours%26816%2C000%2624%2C000%2634%5C%5C%5Cend%7Barray%7D%5Cright%5D)
sprocked unit cost: $ 38.95
hub units cost: $ 93.00
Explanation:
We divide teh cost pool over the total of the cost driver.
This give us the activitty rate.
Then we multiply each rate by the use of each product:
And divide by the total units to get the unti manufacturing overhead
![\left[\begin{array}{ccc}$Activity&$Hubs&$Sprockets\\$Machine Setups&18,000&54,000\\$Special processing&200,000&0\\$General factory&272,000&54,4000\\$Total&490,000&598,000\\$Units&10,000&40,000\\$Overhead per unit&49&14.95\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%24Activity%26%24Hubs%26%24Sprockets%5C%5C%24Machine%20Setups%2618%2C000%2654%2C000%5C%5C%24Special%20processing%26200%2C000%260%5C%5C%24General%20factory%26272%2C000%2654%2C4000%5C%5C%24Total%26490%2C000%26598%2C000%5C%5C%24Units%2610%2C000%2640%2C000%5C%5C%24Overhead%20per%20unit%2649%2614.95%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Finally we add the cost component:
Sprocked:
materials $ 18 + $ 15 x 0.40 units + $ 14.95 = 38.95
Hubs
materials $ 32 + $ 15 x 0.80 units + $ 49 = 93
Answer:
D. InFocus conducts focus groups to determine its target market.
Explanation:
Just took the test!
Answer:
A. Reject (Alternative 1) $0.00
Accept (Alternative 2) $1.12
Differentials Effect on income (Alternative 2) $1.12
B. Accepted (Alternative 2)
Explanation:
a. Preparation of a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.
DIFFERENTIAL ANALYSIS
Reject (Alternative 1) or Accept (Alternative 2)
March 16
Reject Accept Differentials Effect on income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenue per unit $0.00 $7.20 $7.20
Costs:
Variable manufacturing costs per unit
$0.00 -$5.00 -$5.00
Export tariff per unit
$0.00 -$1.08 -$1.08
($7.20*15%=$1.08)
Income (Loss) per unit $0.00 $1.12 $1.12
b. Based on the above differential analysis
the special order should be ACCEPTED (Alternative 2).
