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3 years ago

A company uses activity-based costing to determine the costs of its three products: a, b, and

Business

1 answer:

Keith_Richards [23]3 years ago

7 0

Answer:

$3.10 ; $2.10 and $14.20

Explanation:

The computation of the activity rates is shown below:

For Activity 1

= Budgeted cost ÷ Total budgeted activity of cost driver

= $94,550 ÷ (18,200 + 8,100 + 4,200)

= $94,550 ÷ 30,500

= $3.10

For Activity 2

= Budgeted cost ÷ Total budgeted activity of cost driver

= $53,550 ÷ (7,100 + 13,200 + 5,200)

= $53,550 ÷ 25,500

= $2.10

For Activity 3

= Budgeted cost ÷ Total budgeted activity of cost driver

= $59,995 ÷ (1,175 + 1,000 + 2,050)

= $59,995 ÷ 4,225

= $14.20

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A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 ye

pochemuha

Answer:

Project NPV at 5% discount rate = $1346 .78

Project NPV at 18% discount rate = -597.4

Explanation:

Below is the given values:

Initial cost = $2.2 billion

Yearly cash inflow, A = $300 million

Time = 15 years

Salvage value, S = $900

Project NPV at 5% discount rate = A (P/A, 5%, 15) + S (P/F, 5%, 15) - Initial cost

Project NPV at 5% discount rate = 300 (P/A, 5%, 15) + 900 (P/F, 5%, 15) - $2.2 billion

Project NPV at 5% discount rate = 300 (10.3796) + 900 (0.4810) - $2.2 billion or 2200 million

Project NPV at 5% discount rate = $1346 .78

Now,

Project NPV at 18% discount rate = 300 (5.0915) + 900 (0.0835) - $2.2 billion or 2200 million

Project NPV at 18% discount rate = -597.4

4 0

3 years ago

What is the opportunity cost of producing a car in canada? what is the opportunity cost of producing a bushel of wheat in canada

Lostsunrise [7]

Need more information

5 0

3 years ago

IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S

ivanzaharov [21]

Answer: Asset Transformer

Explanation: The above is an example of asset transformation by Morgan Stanley. The transaction itself is an example of a primary market transaction.

An asset transformers (Morgan Stanley in this case) are involved in the conversion of risky assets (IBM stocks, in this case) into safer assets by creating and selling assets with risk characteristics that investors are more comfortable with (E.g. Mutual funds). The funds acquired by selling these assets are used to purchase other assets that may have for more risk and possibility for higher returns.

5 0

3 years ago

ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total ass

Rama09 [41]

Answer:

$ 620,000

Explanation:

The increase is assets is the amount the firm will need to finance:

Current Assets: 3,840,000

Forecast Assets: 3,840,000 x ( 1 + 20%) = 4,608,000

Assets to finance: 4,608,000 - 3,840,000 = 768,000

A portion of this will be financed by the supplier as the accounts payable will increase:

Curent Account Payable: 740,000

Forecast A/P: 740,000 x (1 + 20%) = 888,000

Financiation provided by the supplier: 888,000 - 740,000 = 148,000

The rest will requiere addtional financiation through equity or other means.

Total Financiation needed: 768,000 - 148,000 = 620,000

3 0

3 years ago

Crane Company issues $310,000, 20-year, 7% bonds at 102. Prepare the journal entry to record the sale of these bonds on June 1,

Volgvan

Answer:

The Journal entry is as follows:

On June 1, 2022

Cash A/c Dr. $316,200

To Bonds payable A/c $310,000

To Premium on Bonds Payable A/c $6,200

(To record the sale of these bonds on June 1, 2022)

Workings:

cash = $310,000 × (102 ÷ 100)

= $310,000 × 1.02

= $316,200

Premium on Bonds Payable = $316,200 - $310,000

= $6,200

8 0

3 years ago

Read 2 more answers