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tiny-mole [99]
3 years ago
8

Hearthstone, Inc., a home healthcare​ firm, has been using a single predetermined overhead allocation rate with direct labor hou

rs as the allocation base to allocate overhead costs. The direct labor rate is​ $200 per hour. Clients are billed at​ 190% of direct labor cost. Sofi​ Acosta, the president of​ Hearthstone, decided to develop an ABC system to more accurately allocate the indirect costs. She identified two activities related to the total indirect costslong dashtravel and information technology​ (IT) support. The other relevant details are given​ below: Activity Allocation base Estimated costs Estimated quantity of allocation base Travel Miles driven ​$85,000 ​3,000 miles IT Support Direct labor hours ​60,000 ​1,300 DLH Total ​$145,000The predetermined overhead allocation rate for travel will be? A. $49.17 per mile B. $26.86 per mile C. $78.33 per mile D. $43.71 per mile
Business
1 answer:
marta [7]3 years ago
3 0

Answer:

Correct answer is B.

<u>$26.86 per mile</u>

Explanation:

Total estimated cost for travel = 94000

Total miles driven = 3500

Overhead allocation rate = total estimated cost/total miles

= 94000/3500

=26.85714 or 26.86

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Which of the following statements is false? Multiple Choice The short run refers to a period of less than one year. In the long
Jet001 [13]

Answer:

The short run refers to a period of less than one year.

Explanation:

The statements is false that the short run refers to a period of less than one year.

The short run, long run and very long run are different time periods in economics.

<u>Short run – where one factor of production (e.g. capital) is fixed</u>.

long run – Where all factors of production are variable,

Unlike in accounting where operating period refer to a period of one year, <u> there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.</u>

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3 years ago
Brainliest and 40 pts!!! Does my answer work for this question?
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1 year ago
The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80%
Elina [12.6K]

Answer:

$312.5 million

Explanation:

Given that,

Besnier Company's sales last year = $250 million

Fixed assets last year = $75 million

Previous operating capacity of fixed assets = 80%

Sales at full capacity:

= Previous sales ÷ Previous Capacity

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3 years ago
Ball Bearings, Inc., faces costs of production as follows:
Travka [436]

Answer:

Q        Fixed       Variable    Total    Marginal    Aver.     Aver.     Aver.

<u>           Costs        Costs         Cost    Cost           FC         VC         TC      </u>

0          100             0              100         -               -             -             -

1           100           50               150       150           100         50         150

2          100           70               170         20            50         35          85

3          100           90               190        20           33.33      30        63.33

4          100          140               240       50            25          35          60

5          100         200               300       60            20          40          60

6          100         360              460      160           16.67       60        76.67

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True or False: This was a wise decision. ⇒ <u>False</u>

Depends on the situation and which costs are avoidable if the company shuts down operations. If it produces 4 cases, the losses reduce from -$100 to -$40, but the contribution margin is positive since revenues exceed variable costs by $60. But under the current price level, the company will not be able to generate profits unless it increases its sales price or decreases its fixed costs.

Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.

At this level of production, the firm's profit is <u>-$100</u>.

True or False: This is the best decision the firm can make. ⇒ <u>False</u>

Accounting profit is maximized at 4 cases since marginal cost ($50) = sales price ($50). At this point the total profit is -$40.

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