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Fantom [35]
2 years ago
11

Basic Company uses activity-based costing. Assume the predetermined overhead allocation rates are $0.90 per machine hour for mix

ing department and $2.20 per test for sampling department. Assume that each unit requires 3 machine hours and 2 tests.
What is the mixing and sampling cost assigned to one unit?
a) $0.90 mixing;$2.20 sampling
b) $2.70 mixing; $2.20 sampling
c) $0.90 mixing; $ 4.40 sampling
d) $2.70 mixing; $4.40 sampling
Business
1 answer:
Elodia [21]2 years ago
7 0

Answer:

$2.70 mixing; $4.40 sampling

Explanation:

Activity based costing is a process by which the various activities in a production process are identified and cost allocated to each one. Each of these actity costs are added as product cost. It involves assigning indirect cost to direct cost.

For mixing department the cost rate is $0.9 per hour for 3 machine hours. So cost is (0.9* 3)= $2.7

For sampling the rate is $2.20 for 2 tests. So cost is (2.20* 2)= $4.4

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This retailer's Fill rate was 88 percent.

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1 year ago
Wilma’s Vegetable Market had the following transactions during 2017:
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Answer:

Journal Entries are as follows.

Explanation:

1.   Cash               $25,000 (Debit)

          Common Stock                              $ 25,000 (credit)

2.   Wages             $10,000  (debit)

               Cash                             $10,000 (credit)

3.  Land                         $ 50,000 (debit)

           Common Stock                        $50,000  (credit)

4.    Dividend Declared    $ 1000  (debit)

                    Dividend Payable            $ 1000 ( credit)

And

   Dividend Payable            $ 1000 ( debit)

                 Cash                           $ 1000 (credit)

5.        Cash               $ 3000  (debit)

              Long Term  Investment            $ 3000 (credit)

6.     Cash                    $ 20,000  (debit)

                Sales                        $ 20,000        ( credit)

7.       Inventory           $2000 (debit)

            Cash                      $ 2000  (credit)

8.      Investment                 $ 6000 ( debit)

               Cash                                             $ 6000 (credit)

9.  Bonds Payable                   $ 10,000  (debit)

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                  Common Stock               $ 9,000 ( credit ) ( in case of discount)

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Interest on Notes Payable                    $ 1,000 (debit) ( suppose there's interest of $ 1000 on $ 10,000 Notes Payable)

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1-b.

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Sue's total deductions = $25 + $6 + $400 + $370 = $801

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