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mash [69]
3 years ago
9

Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation ma

kes two types of hiking boots—Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 140.00 $ 99.00 Direct materials per unit $ 72.00 $ 53.00 Direct labor per unit $ 24.00 $ 12.00 Direct labor-hours per unit 2.0 DLHs 1.0 DLHs Estimated annual production and sales 20,000 units 80,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $1,980,000 Estimated total direct labor-hours 120,000 DLHs
Required: Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.
Business
1 answer:
Gelneren [198K]3 years ago
4 0

Answer:

product margins for the Xtreme and the Pathfinder is 7.9% and 17.7% respectively.

Explanation:

Estimated total manufacturing overhead $1,980,000 Estimated total direct labor-hours 120,000 DLHs, then manufacturing overhead per hour is $33 = 1,980,000/120,000 = $16.5

Please see the detailed calculation in excel attached.

Download xlsx
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Answer: $332.1

Explanation:

Given that,

Monthly collected balance = $600,000

Bank pays an earning credit rate = 0.75%

Reserve Requirement Ratio = 10% of $600,000

                                              = $60,000

Investable amount = Monthly collected balance - Reserve requirement amount

                               = $600,000 - $60,000

                               = $540,000

 

ABC's monthly earnings credit:

= Investable amount × Earning credit rate × Time period

= 540,000 × 0.75% × \frac{30}{365}

= $332.1

3 0
3 years ago
Misty and John formed the MJ Partnership. Misty contributed $50,000 of cash in exchange for her 50% interest in the partnership
Pie

Answer:

$78,000

Explanation:

The computation of interest at year end is shown below:-

Interest at year end = Cash contribution + Income of partnership + Share of partnership liabilities - Cash from the partnership

= $50,000 + $20,000 × 50% + $60,000 × 50% - $12,000

= $90,000 + $10,000 + $30,000 - $12,000

= $78,000

Therefore for computing the partnership interest at year end we simply applied the above formula by considering all the items given in the question

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Suppose potential income is $80 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual bu
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Because I 4-(5-22)-2
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A model of sea ice coverage is made with sketches and diagrams. it shows that ice cover increased in the antarctic and decreased
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This would be a conceptual model.

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Briefly describe the differences among international bond, bank and equity markets. Would you support an MNC that favors financi
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Answer:

Answer to this question is explained below in detail.

Explanation:

This question is not complete. This has two parts a) and b). Part a) is complete and b) is incomplete. I have written down the complete question and will try to answer completely.

a) Briefly describe the differences among international bond, bank and equity markets.

b) Would you support an MNC that favors financing through bonds issues or would you rather support one that favors financing through stock issues?

Solution:

a) We are asked to differentiate between international bond, bank and equity markets.

All three terms are related to raising funds, lending or borrowing to raise the capital for some government or for any company.

Let's start with International Bonds first.

International Bonds : In this globalized world, a company can raise its capital through getting debt in the form of international bonds from international institutions over the assets value of the company. For example: XYZ company has a asset value of 10 million dollars, so it can get international bonds accordingly.  

International Equity markets: Again due to interlinked world, companies and institutions all over the world can invest their funds in any company around the globe. And through equity markets companies can sell their shares to raise its capital depending upon the asset value of the company.

International Banks: International banks are international institutions which raise capital in particular country and have branches all over the world. It can lend funds to companies on particular interest rates. Furthermore, all those bonds are generated in these banks as well.

b) Supporting an MNC that favors financing through bonds issues or through equity markets or stock issues will depend on the debt/equity ratio of the company. If it is low, company should go for debt or bond issues. If it is high then it should opt for stock issues.

6 0
3 years ago
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