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Law Incorporation [45]
3 years ago
10

Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four

activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:Product Machine Hours Setups Receiving Orders Packing Orders
35mm 10,000 100 200 400
Digital 10,000 250 800 2000
Cost $60,000 $40,000 $8,000 $24,000

A. Calculate the total overhead assigned to each the 35mm camera using only machine hours to calculate a plant-wide rate.
B. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera.
C. Calculate an activity rate for packing based on packing orders.
Business
1 answer:
tiny-mole [99]3 years ago
5 0

Answer:

Total overhead assigned to each the 35mm camera $ 66,000

An Activity Rate for receiving   $8 per receiving order

Receiving costs for 35mm camera  $1600

An Activity Rate for packing $ 10 per packing order

Explanation:

Product Machine Hours Setups Receiving Orders Packing Orders

35mm         10,000             100           200                  400

Digital            10,000          250          800                  2000

Cost            $60,000        $40,000    $8,000           $24,000

Total Overhead Costs= $ 60,000 + $ 40,000 + $ 8000+ $ 24,000= $132,000

Total overhead assigned to each the 35mm camera=( Total Costs/Total Machine Hours) * 35mm camera machine hours

Total overhead assigned to each the 35mm camera= ($ 132,000/ 20,000)10,000= $ 66,000

An Activity Rate for receiving based on receiving orders= 8000/1000=  $8 per receiving order

Receiving costs for 35mm camera= 8 * 200= $1600

An Activity Rate for packing based on packing orders = 24000/ 2400= $ 10 per packing order

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Answer:

a. Purchase of Equipment  - (3) investing

b. Redemption of bonds payable  - (4) financing

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d. Depreciation  - (1) operating—add to net income;

e. Exchange of equipment for furniture  - (5) significant noncash investing and financing activities

f. Issuance of capital stock  - (4) financing

g. Amortization of intangible assets  - (1) operating—add to net income

h. Purchase of treasury stock  - (4) financing

i. Issuance of bonds for land - (5) significant noncash investing and financing activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

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Although we usually think of marketing in terms of the piles of consumer goods begging for our dollars every day, the reality is
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3 years ago
Explain five reasons that may cause a company to redeem its own shares ​
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Bancorp changes its interest rates for consumer loans on houses and cars based on changes made by the federal reserve​ (the fed)
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Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet comput
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Answer:

Variable costing principle uses variable cost alone while absorption costing uses all cost both fixed and variable that are related to the production

1)Variable costing

Income = $28,000,000

Cost of production - $9,600,000

Gross profit = 18,400,000

Admin & selling expenses =509,091

PBIT = 17,890,909

2)Absorption costing

Income - $28,000,000

Cost of production  18,400,000

Gross profit        9,600,000

Admin $ selling expenses 5,259,091

PBIT = 4,340,909

3)Reported income is identical under both variable and absorption costing when production is the same with sales and there is no opening finished good inventory . All costs including the fixed costs are absorbed into the cost of production

Explanation:

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Direct labor $60/unit

Variable overhead cost - $2,200,000

Fixed overhead cost - $8,800,000

Variable admin cost - $700,000

Fixed admin cost - $4,750,000

Unit produced - 110,000

Unit sold - 80,000

Selling price - $350

sales revenue - 80000*$350 - $28,000,000

Cost

Direct material = 80000* 40= $3,200,000

Direct labor      = 80000*60 = $4,800,000

Variable overhead = 2200000/110000 * 80000 = $1,600,000

Fixed overhead = $8,800,000 =

Variable admin= 700000/110000 * 80000 = $509,091

Fixed admin = $ 4,750,000

Total cost = $23,659,091

7 0
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