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3 years ago

Acquisition of Land and Building

Business

1 answer:

Leokris [45]3 years ago

7 0

Answer: The total cost of land will be $110,00 while the total cost of building will be $675,000.

Explanation:

The total cost of land will be $110,00 while the total cost of building will be $675,000. Total cost of land is gotten by ($100,000 + $8,000 + $4,000 - $2,000) = $110,000

Total cost of building is gotten by adding $25,000 + $650,000 = $675,000.

Further explanation has been attached

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2 years ago

Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospita

Semenov [28]

Answer:

A. Customer deliveries $90

Manual order processing $74

Electronic order processing $21

Line item picking $1.95

B. CITY GENERAL

Activity cost pools City General

Customer deliveries $900

Manual order processing $0

Electronic order processing $210

Line item picking $234

Total Activity Costs $1,344

COUNTRY GENERAL

Activity cost pools Country General

Customer deliveries $1,800

Manual order processing $2,960

Electronic order processing $0

Line item picking $546

Total Activity Costs $5,306

Explanation:

a. Computation for the activity rate for each activity cost pool

Using this formula

Activity rate = Total cost / Total activity

Let plug in the formula

Activity cost pools Total Cost (a) Total activity (b) Activity rate (a/b)

Customer deliveries $630,000/ 7,000 =$90

Manual order processing $444,000/ 6,000 =$74

Electronic order processing $231,000/ 11,000 =$21

Line item picking $955,500/ 490,000=$1.95

Therefore the activity rate for each activity cost pool are:

Customer deliveries $90

Manual order processing $74

Electronic order processing $21

Line item picking $1.95

b. Computation for the total activity costs that would be assigned to City General and County General

Using this formula

Activity cost assigned = Actual activity * Activity rates

Cost drivers by product Overhead cost assigned

CITY GENERAL

Activity cost pools Activity rate (a) City General(b) City General (a*b)

Customer deliveries $90 *10 =$900

Manual order processing $74*0=$0

Electronic order processing $21* 10=$210

Line item picking $1.95*120=$234

Total Activity Costs $1,344

($900+$0+$210+$234)

COUNTRY GENERAL

Activity cost pools Activity rate (a) Country General(b) Country General (a*b)

Customer deliveries $90 *20 =$1,800

Manual order processing $74*40=$2,960

Electronic order processing $21* 0=$0

Line item picking $1.95*280=$546

Total Activity Costs $5,306

($1,800+$2,960+$0+546)

Therefore The the total activity costs that would be assigned to City General and County General

are:

CITY GENERAL

Activity cost pools City General

Customer deliveries $900

Manual order processing $0

Electronic order processing $210

Line item picking $234

Total Activity Costs $1,344

COUNTRY GENERAL

Activity cost pools Country General

Customer deliveries $1,800

Manual order processing $2,960

Electronic order processing $0

Line item picking $546

Total Activity Costs $5,306

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3 years ago