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Anit [1.1K]
3 years ago
14

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of u

nits produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:
Activity Cost Driver Amount M XY
Production setups Number of setups $72,000 12 28
Material handling Number of parts 50,000 54 36
Packaging costs Number of units 355,000 108,000 72,000
$477,000

What is the total overhead allocated to Product XY using the current system?

a. $212,400.
b. $190,800.
c. $264,600.
d. $286,200.
Business
1 answer:
AVprozaik [17]3 years ago
5 0

Answer:

Option (b) is correct.

Explanation:

Given that,

Total Overhead Cost = $477,000

Number of Units of Product XY = 72,000

Number of Units of Product M = 108,000

Total overhead allocated to Product XY using the current system:

= (Total Overhead Cost ÷ Number of units produced in total) × Number of Units of Product XY

= ($477,000 ÷ 180,000) × 72,000

= $2.65 × 72,000

= $190,800

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In that sense, <em>supermarkets </em>would fall into this category since they match perfectly with the definition of a convenience store due to the diverse kind of goods they offer.

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3 years ago
Marketing Strategy Formulation
Keith_Richards [23]

Answer:

Marketing Strategy Formulation

Goals indicate what a business unit wants to achieve; strategy answers how to get there.

Basic generic strategies

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The business works hard to achieve the lowest costs. The problem with this strategy is that other food trucks will usually emerge with still lower costs. The real key is for Chix and Waffles to achieve the lowest costs among those competitors adopting a similar differentiation or focus strategy.

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Focus

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Goals are listed hierarchically, from most to least important. State the objectives quantitatively with a time line and a due date. Your goal at this point of your business plan is to execute the business plan in order to achieve the budgeted profits by the end of the first quarter of re-opening.

Examples

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Strategy #2

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3 years ago
When its sales were declining, canadian airline conducted a marketing survey to understand the expectations of the business trav
Montano1993 [528]

Answer:

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Explanation:

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Hope it helped!

5 0
3 years ago
Shirley’s and Son have a debt-equity ratio of .60 and a tax rate of 35 percent. The firm does not issue preferred stock. The cos
ikadub [295]

Answer:

d. 8.2%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

where,  

Weighted of debt = Debt ÷ total firm

= (0.60 ÷ 1.60)

= 0.375

And, the weighted of common stock = (Common stock ÷ total firm)

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The total firm is

= 0.60 + 1

= 1.60

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= 1.95% + 6.25%

= 8.20%

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