Answer:
B. Journal entry-level
Explanation:
When using ABC, costs can be gathered at different levels. These levels are all of the following except "journal entry-level".
Therefore, costs can be gathered in Unit-level, Batch-level, Factory-level and even Product level.
Activity-Based Costing (ABC) is actually a costing method which tends to identify the activities that are carried out in organization and gives the costs of each activity to the products and services by what they actually consume.
Answer:
The answer is absorption costing.
Explanation:
This method is used to indicate that all costs have been absorbed by the units produced, and includes the following costs (fixed and variable):
1. Direct labor.
2. Direct materials.
3. Fixed manufacturing overhead.
4. Variable manufacturing overhead.
Answer:
Butcher's warranty expense for Year 4 is $10,000
Explanation:
Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.
So, the warranty expense computation is shown below:
= Sale units of toys × selling price per toy × returned percentage
= 10,000 toys × $20 × 5%
= $10,000
The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.
Hence, Butcher's warranty expense for Year 4 is $10,000
