1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arlecino [84]
4 years ago
8

g Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the c

ompany's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining $ 11,325 Order Filling $ 26,274 Other $ 7,200 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Machining) Orders (Order Filling) Product O4 3,600 270 Product S1 11,500 1,240 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Product O4 Product S1 Sales (total) $ 98,100 $ 104,600 Direct materials (total) $ 45,800 $ 35,000 Direct labor (total) $ 37,600 $ 38,700 What is the overhead cost assigned to Product S1 under activity-based costing
Business
1 answer:
nordsb [41]4 years ago
8 0

Answer:

Overhead Cost - S1 =  $30201

Explanation:

To assign Overhead costs to S1, we first need to calculate the Overhead Absorption rate for Machining and Order filling.

The Overhead Absorption rate for Machining is calculated by dividing the Machining Overheads by the number of Machine hours to calculate $ Overhead per Machine Hour.

  • Total Machining Hours = 11500 + 3600 = 15100
  • Machining = $11325 / 15100 Hours = $0.75 / Machine Hour

Now we do the same calculation for Order Filling Overheads and divide them by Number of Orders.

  • Total Number of Orders = 270 + 1240 = 1510
  • Order Filling = 26274 / 1510 = $17.4 per order

Now we allocate the Overheads to S1 on the basis of Machine Hours and Number of orders relating to S1.

  • S1 Machine Hours = 11500
  • S1 Orders = 1240
  • S1 Overheads = 0.75 × 11500 + 17.4 × 1240 = $30201
You might be interested in
What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?
Svet_ta [14]

Answer:

Option D                      

Explanation:

In simple words, method of performance division is considered to be effective when it depicts a true picture, not because it gives a sound position of the organisation as waned by the managers.

Thus, reticulation should not be done. Also, Divisional performance should be judged by some other aspects like time taken to perform the job or wastage done by them etc.

8 0
3 years ago
Direct interview requests include of all of the following techniques EXCEPT:
eduard
A requesting an interview through an employment agency 
3 0
4 years ago
Read 2 more answers
Cramer Corporation and Mr. Chips formed a general partnership. Cramer contributed $500,000 cash, and Mr. Chips contributed a bui
Damm [24]

Answer:

$850,000

Explanation:

Cramer's tax basis in its partnership interest can be estimated as follows:

Cramer's cash contribution to the general partnership = $500,000

Cramer's share of the recourse debt borrowed = $700,000 / 2 = $350,000

Cramer's tax basis in its partnership interest = Cramer's cash contribution + Cramer's share of the recourse debt = $500,000 + $350,000 = $850,000

Note:

The reecourse debt is shared equally as coventionally required when the profit and loss sharing is not stated in the question.

7 0
3 years ago
A companies profit motive benifits consumers by ensuring the products and services they need are aviable at a high quality
Brilliant_brown [7]

Answer:

A. The invisible hand

Explanation:

CHECK THE COMPLETE QUESTION BELOW

A company's profit motive benefits consumers by ensuring the products and services they need are available at a high quality. what is this describing?

A. The invisible hand

B. Mixed economy

C. Laissez-faire

D. Private enterprise

The invisible hand can be regarded as a metaphor used in describing the unseen forces which is responsible for movement of the free market economy. With freedom of production as well as individual self-interest and consumption, we can fulfill best interest of society. This is a concept by Adam Smith. For instance, A company's profit motive benefits consumers by ensuring the products and services they need are available at a high quality, describe invisible hand.

8 0
3 years ago
True or false: if you pay the minimum payment each month, you will quickly pay off your credit card.
Musya8 [376]
The answer is actually FALSE.
5 0
3 years ago
Other questions:
  • The U.S. Department of Education has a data retrieval tool that provides general information about a college's graduation rates,
    11·2 answers
  • The law of diminishing marginal utility:_______a) allows us to make interpersonal utility comparisons. b) tells us that an addit
    8·2 answers
  • You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the
    13·1 answer
  • Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?
    5·2 answers
  • Here I Sit Sofas has 6,000 shares of common stock outstanding at a price of $83 per share. There are 710 bonds that mature in 19
    6·1 answer
  • Select the true statement about the impact of automation on employment. a.) Automated processes have no effect on the number of
    10·1 answer
  • A lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease term will report sales revenue
    6·1 answer
  • What are closing entries and why are they important in accounting?​
    11·2 answers
  • What is the purpose of a headline?
    11·1 answer
  • Give the journal entry (FOR FULL CREDIT ALWAYS GIVE JOURNAL ENTRIES IN PROPER FORM: see Hints/FAQ tab for guidelines) when a bui
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!