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jekas [21]
3 years ago
12

Faz, Inc, manufactures and sells two products: Product X0 and Product W7. Data concerning the expected production of each produc

t and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product X0 1,000 6 6,000
Product W7 590 3 1,770
Total direct labor-hours 7,770

The direct labor rate is $38.60 per DLH. The direct materials cost per unit is $163.50 for Product X0 and $145 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Expected Activity
Activity Cost Pools Activity Measures Estimated Overhead Cost Product X0 Product W7 Total
Labor-related DLHs $291,078 6,000 1,770 7,770
Production orders orders 20,848 690 890 1,580
Order size MHs 258,314 4,190 4,290 8,480
$570,240

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X0 would be closest to: ____________
Business
1 answer:
natima [27]3 years ago
3 0

Answer:

$106.36 per unit

Explanation:

Total overhead assigned to product X0

= [Total overhead / Total direct labor hours ] × Labor hours of product XO

= [$570,240 / 7,770] × 1,000

= $73,390

Overhead assigned to each unit of product X0

= $73,390 / Units of product X0

= $73,390 / 690

= $106.36 per unit

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trasher [3.6K]

Answer:

$32,000

Explanation:

Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report

Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)

Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)

Before-tax LIFO liquidation profit =$24,000+$8,000

Before-tax LIFO liquidation profit =$32,000

Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000

7 0
4 years ago
The managerial and administrative functions of the federal courts are handled by _____.
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8 0
3 years ago
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Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.0
anyanavicka [17]

Answer:

WACC is 9.26%

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