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4 years ago

Using ABC in a service company

Business

1 answer:

Ilia_Sergeevich [38]4 years ago

6 0

Answer:

Blanchette Plant Service

ABC Costing Technique:

1. Total cost of the Kerry job:

Plants = $750

Direct labor = 1,300

Total cost = $2,050

2. Determination of operating income or loss (Kerry's job):

Service Revenue = $3,540

less cost of service 2,050

Operating income = $1,490

3. With desired operating income of 30% of cost:

Operating income = $615 ($2,050 x 30%)

The company can charge the Kerry job $2,665 ($2,050 + 615) or ($2,050 x 1.3)

Explanation:

Operating income or loss is the difference between revenue and costs of providing the services or goods. When the revenue exceeds the operating cost, the difference is an operating income. When the revenue is exceeded by the operating cost, the difference is an operating loss. While the former means that the organization has added value to its resources, the latter implies that the organization has lost some value to its resources, thereby reducing the equity of the owners in the business entity.

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If the borrower has a previous foreclosure, can he use FHA to purchase a new home?

snow_tiger [21]

Answer:

Yes he can use FHA

Explanation:

Because FHA Loans are the most forgiving of foreclosures. To qualify for an FHA mortgage loan, you must wait at least three years after the foreclosure. The three year clock starts ticking from the time that the foreclosure case has ended, usually from the date that you prior home was sold in the foreclosure preceeding. If the foreclosure also involved an FHA loan, the three year waiting periods starts from the date that FHA paid the prior lender on its claim

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3 years ago

Consider luxury weekend hotel packages in Las Vegas. When the price is $250, the quantity demanded is 2,000packages per week. Wh

konstantin123 [22]

Answer:

The elasticity is about 1.43, and an increase in the price will cause hotels' total revenue to decrease

Explanation:

The formula of the midpoint for the variation of the quantity is $\frac{Q2-Q1}{(Q2+Q1)/2} *100$ and for the price is $\frac{P2-P1}{(P2+P1)/2} *100$ . With the variation of the price and the quantity the elasticity formula is ΔQ/ΔP. Replacing the elasticity is -1.43

The price elasticity of the demand is bigger than 1, that means that the demand is elastic, every increase of the price will cause a bigger decrease of the quantity, the revenue will drop because the increase of the price do not compansete the decrease of the quantity.

6 0

3 years ago

Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch

netineya [11]

More to the question?

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4 years ago

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 42,000

Doss [256]

Answer:

Results are below.

Explanation:

1) Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

Direct material= Thread + Premium quality cotton material + Buttons

Direct material= 1,000 + 42,000 + 750

Direct material= $43,750

2) Direct labor is production or service labor that is assigned to a specific product, cost center, or work order. 

Direct labor= Wages paid to seamstresses + Wages paid to cutters Direct labor= 75,000 + 50,000

Direct labor= $125,000

3) Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

Manufacturing overhead= Factory rent + Utilities for factory + Cutting room supervisor's salary + Factory insurance + Depreciation on sewing machines

Manufacturing overhead= 42,000 + 22,000 + 30,000 + 15,000 + 6,000

Manufacturing overhead= $115,000

4) Total manufacturing costs= 43,750 + 125,000 + 115,000

Total manufacturing costs= $283,750

5) Prime cost= direct material + direct labor

Prime cost= 43,750 + 125,000

Prime cost= $168,750

6) Conversion cost= direct labor + MOH

Conversion cost= 125,000 + 115,000

Conversion cost= $240,000

7) Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Period costs= Company advertising + Depreciation on salespersons' vehicles + President's salary

Period costs= 18,000 + 25,000 + 75,000

Period costs= $118,000

8 0

3 years ago

The ""Know They Customer"" program: a. is a federal program directed at commercial bribery prevention. b. is a federal program r

Serga [27]

Answer: B. A federal program aimed at detecting money laundering

Explanation: with rising corruption issues, financing of terrorism and money laundering becoming so prevalent the Know Your Customer program was initiated to help combat these issues. It is a process by which banks obtain personal information about the identity and address of its customers. In this, banks are prevented from being used to service money laundering activities while also enabling them better understand their customers, monitor their financial dealings thus, assisting them in serving their customers better and manage its risks wisely.

4 0

3 years ago