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1 year ago

Explain the concepts of unitization and cube utilization. how are they related to benefit reducing transportation costs?

Business

1 answer:

Sliva [168]1 year ago

6 0

Cube utilization is the calculation which determines the total space used in storage.

Cube utilization is expressed as a percentage between 0% - poor and 100% - excellent, accordingly. So if you have filled every available spot in your warehouse with product, then you have 100 percent warehouse cube utilization.

Cube utilization is related to benefit reducing transportation costs, as effective cube utilization significantly lowers freight and supply chain costs. Cubing and weighing equipment helps companies make better use of their warehouse space, cut shipping costs and reduce errors.

Hence, in order to improve cube utilization, products should be shipped in bulk form to avoid packaging.

To learn more about transportation costs here:

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Which of the following criteria is important when identifying a potential

-BARSIC- [3]

Answer: A

Explanation:

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2 years ago

Read 2 more answers

Lake Company recorded the following data for the month of January 20xx: Inventories January 1, 20xx January 31, 20xx Direct Mate

Allisa [31]

Answer:

A.Materials consumed in January = $31,000

B.Total Manufacturing Overhead Costs = $83,000

C. Cost of Goods Manufactured = $157,000

Explanation:

Direct Material $24,000 $23,000

Work in Process 18,000 15,000

Finished Goods 22,000 27,000

Net Sales Revenue $325,000

Direct Labour Costs 40,000

Indirect Labour Costs 45,000

Sales Commissions 15,000

Administrative Expenses 18,000

Direct Materials Purchased during January 30,000

Depreciation, factory 10,000

Factory Maintenance and Supplies 8,000

Utilities, (80% factory , 20% office) 25,000

General Office Salaries 12,000

A. Amount of direct materials used in January

Opening Direct Material $24,000

Add Purchased Direct Material $30,000

Less Closing Direct Materials $23,000

Materials consumed in January = $31,000

B. Manufacturing Overhead Costs:

Indirect Labour Costs 45,000

Depreciation, factory 10,000

Factory Maintenance and Supplies 8,000

Utilities, (80% factory) 20,000

Total Manufacturing Overhead Costs = $83,000

C. Cost of Goods Manufactured

Cost of Direct Materials Consumed = $31,000

Add :

Opening Work in Process $18,000

Less Closing Work in Process $15,000

Transfer to Finished Goods $3,000

Add Direct Labor Costs $40,000

Add Manufacturing Overhead Costs $83,000

Cost of Goods Manufactured = $157,000

4 0

2 years ago

An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance fo

horsena [70]

Answer:

Debit to Bad Debt Expense for $7,700

Explanation:

Based on the information given we were told that company's accounts receivable shows the estimate of uncollectible accounts totals of the amount of $6,400 while the Allowance for Doubtful Accounts has the amount of $1,300 as the debit balance. This means that the adjustment to record the bad debt expense for the period will require a

Debit to Bad Debt Expense for $7,700 Calculate as:

Dr Bad Debts 7700

(6300+1300)

Cr To Allowance for Doubtful Accounts 7700

8 0

2 years ago

Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are ta

erastovalidia [21]

Answer:

Chairs= $2.805

Tables= $2.25

Explanation:

Giving the following information:

Hazardous waste disposal costs= $630,000

Production:

Chairs= 211,000

Tables= 17,000 units

Direct labor hours required:

Chairs= 254,000 DLH

Tables= 16,400 DLH

Total DLH= 270,400

First, we need to calculate the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 630,000/ 270,400

Estimated manufacturing overhead rate= $2.33 per direct labor hour

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Chairs= 2.33*254,000= $591,820

Tables= 2.33*16,400= $38,212

Finally overhead per unit:

Chairs= 591,820/211,000= $2.805

Tables= 38,212/17,000= $2.25

3 0

2 years ago

Assume that banks do not hold excess reserves and that households do not hold currency - the only form of money is demand deposi

dsp73

Answer:

A. If the reserve requirement is 5% then money multiplier is 20 and the the money supply for each reserve requirement is $10,000 billion

B. If the reserve requirement is 10% then money multiplier is 10 and the the money supply for each reserve requirement is $5,000 billion

For a given level of reserves, a lower reserve requirement is associated with a larger money supply. Suppose the Federal Reserve (the Fed) wants to increase the money supply by $500 billion. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to buy $50 billion worth of U.S. government bonds. Now, suppose that rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, in addition to the required reserves of 10%, banks hold an additional 40% of their deposits as reserves. This increase in the reserve ratio causes the money multiplier to fall to 2. Under these conditions, the Fed would need to buy $250 billion worth of U.S. government bonds in order to increase the money supply by $500 billion.

The following statements help to explain why the Fed cannot precisely control the money supply are:

B- The Fed cannot control the amount of money that households choose to hold as currency.

C- The Fed cannot control whether and to what extent banks hold excess reserves.

Explanation:

A. If the reserve requirement is 5% then money multiplier is 20 (= 100%:5%) and the the money supply for each reserve requirement is $10,000 billion (=$500 billion x 20)

B. If the reserve requirement is 10% then money multiplier is 10 (= 100%:10%) and the the money supply for each reserve requirement is $5,000 billion (=$500 billion x 10)

5 0

2 years ago