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Sunny_sXe [5.5K]
3 years ago
12

Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets

to its commercial customers. Company personnel who earn $260,000 typically perform both tasks; other firm-wide overhead is expected to total $60,000. These costs are allocated as follows:
Bouquet Production Delivery Other
Wages and salaries 60 % 30 % 10 %
Other overhead 50 % 40 % 10 %
Skyline anticipates making 20,500 bouquets and 4,000 deliveries in the upcoming year.
1. The cost of wages and salaries and other overhead that would be charged to each delivery is closest to __________?
2.The cost of wages and salaries and other overhead that would be charged to each delivery is closest to __________?
Business
1 answer:
Jet001 [13]3 years ago
6 0

Answer:

1. $9.07

2. $25.5

Explanation:

(a) Total Cost:

= 260,000 × 60% (Wages and Salaries) + 60,000 × 50% (Other Overhead)

= $186,000

Cost of Wages and Salaries and Other Overheads Charged to Each Bouquet:

= Total Cost ÷ Total Bouquets

= $186,000 ÷ 20,500

= $9.07

(b) Total Cost:

= 260,000 × 30% (Wages and Salaries) + 60,000 × 40% (Other Overhead)

= $102,000

Cost of Wages and Salaries and Other Overheads Charged to Each Delivery:

= Total Cost ÷ Total Delivery

= $102,000 ÷ 4,000

= $25.5

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Juniper Co uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9750 of me
KatRina [158]

Answer:

D) Debit Accounts Payable $1500; Credit Merchandise Inventory $1500

Explanation:

The journal entry to record the merchandise return is shown below:

Account payable A/c Dr $1,500

                To Merchandise inventory A/c $1,500

(Being returned inventory is recorded)

For recording the returned inventory we debited the account payable and credited the merchandise inventory account so that the proper posting could be done

6 0
2 years ago
A business will want to borrow to undertake an investment project when the rate of return on that project is:
pychu [463]

Answer:

B) higher than the interest rate.

Explanation:

In the case when the business wants to borrow for a project so the rate of return would be greater than the rate of interest

And in the case when the rate of interest is lesser than the expected return so the investment would look attractive due to this there is a rise in the borrowing for that investment

Hence, the option b is correct

3 0
2 years ago
HELP PLEASE !!
Lapatulllka [165]
The answer is going to be B
5 0
3 years ago
g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,
Amanda [17]

Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis  

Details                                         Current price               Reduced price

Units Sold                                        100,000                         130,000

Unit sales price                            <u>       129          </u>                <u>         99        </u>

Sales Revenue                             $12,900,000                 $12,870,000

Cost of Goods sold at $50            <u>5,000,000</u>                  <u>$6,500,000</u>

Gross Profit                                    $7,900,000                  $6,370,000

G. Profit on Strips sold at $75      <u>$7,500,000</u>                  <u>$9,750,000</u>

Total Gross Profit for the year      $15,400,000                $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

3 0
2 years ago
Many politicians have degrees in business or law. true or false?
Andrei [34K]

The answer is mostly True.

4 0
3 years ago
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