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salantis [7]
3 years ago
7

Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provid

ed the following data concerning its activity-based costing system:
Activities (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $362,600
Batch setup (setups) $421,500
General factory (direct labour-hours) $308,100


Expected Activity
Activities Product X Product Y Total
Machine related 6,000 8,000 14,000
Batch setup 12,000 3,000 15,000
General factory 5,000 8,000 13,000

Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

a. $421,500
b. $897,500
c. $476,000
d. $611,100
Business
1 answer:
GREYUIT [131]3 years ago
6 0

Answer:

d. $611,100

Explanation:

The computation of the total amount of overhead cost is shown below:

= (Machine related cost ÷ Total machine related cost of product X × Machine related of product X) + (Batch setup cost ÷ Total machine related cost of product X × Machine related of product X) + (General factory cost ÷ total general factory cost of product X × general factory of product X)

= ($362,600 ÷ 14,000 × 6,000) + ($421,500 ÷ 15,000 × 12,000) + ($308,100 ÷ 13,000 × 5,000)

= $155,400 + $337,200 + $118,500

= $611,100

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trasher [3.6K]

Answer:

$32,000

Explanation:

Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report

Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)

Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)

Before-tax LIFO liquidation profit =$24,000+$8,000

Before-tax LIFO liquidation profit =$32,000

Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000

7 0
3 years ago
It costs Sunland Company $28 of variable costs and $18 of allocated fixed costs to produce an industrial trash can that sells fo
Usimov [2.4K]

Answer:

The effect that will happen on the net income is an increase in $6,000.

Explanation:

For this product, we have:

Price: $90.

Variable cost: $28

Allocated fixed cost: $18

There is an opportunity to sell 3,000 units at $30, and the firm has excess capacity.

As the allocated fixed cost only counts for the existing level of production (before accepting the 3,000 additional units), they don't matter in the decision.

With excess capacity, the firm only incurs in the variable cost of $28 per unit. If the price is $30, the variation in the net income will be:

\Delta NI=Q(P'-VC)=3,000*(30-28)=3,000*2=6,000

The effect that will happen on the net income is an increase in $6,000.

3 0
3 years ago
The "four P's" of marketing are
Alex73 [517]

Answer:

Product characteristics, price structure, placement strategy, and promotional strategy.

Explanation:

The 4p's are product price place and promotion

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Exercise 6-16 Kaleta Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inv
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Answer:

Cost of goods available for sale=$1,640

Explanation:

To calculate the cost of goods available for sale, we need to first calculate the available units of inventory;

Available inventory=Inventory purchased-inventory sold

where;

Inventory purchased are as follows;

On June 1>>>>>purchased 410 units each at $8

On June 12>>>>purchased 820 units each at $9

On June 23>>>>purchased 615 units each at $10

Total inventory purchased=(410+820+615)=1,845 units

Inventory sold are as follows;

On June 15>>>>sold 902 units each at $11

On June 27>>>>sold 738 units each at $12

Total inventory sold=(902+738)=1,640 units

Available inventory=(1,845-1,640)=205 units

The cost of goods sold can be expressed as;

Cost of goods available for sale=Cost per unit×number of units

where;

Number of units of inventory=205

Cost per unit=least cost per unit=$8

replacing;

Cost of goods available for sale=(8×205)=1,640

Cost of goods available for sale=$1,640

8 0
3 years ago
Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated
AURORKA [14]

Answer:

The correct answer is: b. flexible manufacturing systems, total quality management, and information networks.

Explanation:

A Flexible Manufacturing System or FMS is a group of interconnected workstations through an automated material transport system.  The transport system, as well as other storage systems that can be used, must be automatic. The whole set is controlled by computer

It is known as total quality management to a business management strategy that consists of the study and assessment of the concept of quality in each of the phases of an organizational process. Its purpose is the constant improvement of goods and services offered and the achievement of greater customer satisfaction.

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