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dalvyx [7]
3 years ago
7

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted c

ost and activity for each of its three activity cost pools: Budgeted Activity Activity Cost Pool Budgeted Cost Product A1 Product B2 Activity 1 $ 48,000 1,200 4,800 Activity 2 $ 63,000 2,240 4,760 Activity 3 $ 80,000 7,200 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?
Business
1 answer:
Mila [183]3 years ago
4 0

Answer:

$4.00

Explanation:

To calculate the approximate overhead cost per unit of product A1 under activity - based costing we have it as

Activity 1 allocated to Product B2 line we have as

$48,000 × 4,800/6,000

= $38,400

Activity 2 allocated to Product B2 line we have it as

= $63,000 × 4,760/7,000

= $42,840

Activity 3 allocated to Product B2 line we have it as

=$80,000 × 800/8,000

= $8,000

Total overhead allocated to Product B2 = $89,240

Overhead per unit of Product B2: $89,240/22,310 = $4.00

As our overhead unit of product

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schepotkina [342]

When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.

<h3>What is Net operating income?</h3>
  • Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..

  • Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.

  • By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.

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  • Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.

Hence,  When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.

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4 0
1 year ago
Economists use the distinction between private and public goods to determine __________
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Economists use the distinction between private and public goods to determine what projects and activities should be undertaken by the government.

In the economy, there are different types of goods among which, public goods are goods which are produced by the government or by nature for the welfare of the people without any cost. On the other hand, private goods are the ones manufactured and sold by private companies to earn a profit.

Economists use this distinction between different goods to allow the government to decide which goods are considered public goods so that the government can channel the funds in order to provide the public goods to the economy.

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8 0
2 years ago
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padilas [110]

Answer:

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Explanation:

Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.

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Olenka [21]

Answer:

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