1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaVladis [17]
3 years ago
15

Gale Corporation manufactures windsocks. The business recently decided to adopt an ABC system. The following activities have bee

n identified: Activity Cost Driver Chosen as Allocation Base Conversion Cost Per Unit of Allocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 EaEach windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. 7. The total cost of producing the 20,000 windsocks is: A. $160,000. B. $230,000. C. $270,000. D. $1,260,000.
Business
1 answer:
solniwko [45]3 years ago
5 0

Answer:

$270,000

Explanation:

The first step is to calculate the overhead cost of the material handling parts

Since each wind stock require 3 parts then the overhead cost can be calculated as follows

= 3 × 20,000

= 60,000

The overhead cost of machining hours can be calculated as follows

Since 5 minutes is spent in the machining department then overhead cost is

= 5× 20,000

= 100,000

The overhead cost of packaging number of finished units can be calculated as follows

= 2 × 20,000

= 40,000

Total overhead cost= 100,000 + 60,000 + 40,000

= 200,000

The total cost of direct materials and labor can be calculated as follows

= 3.5 × 20,000

= 70,000

Therefore the total cost of producing 20,000 windstocks is

= Total overhead cost + total cost of direct materials and labor

= 200,000 + 70,000

= $270,000

Hence the total cost of producing 20,000 windstocks is $270,000

You might be interested in
The definition of a business is:
kykrilka [37]

Answer:

a person's regular occupation, profession, or trade.

Explanation:

4 0
3 years ago
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate
Vaselesa [24]

Answer:

Check the explanation

Explanation:

Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.

This will reduce the cost of production of American Producers and would increase their profit-margin.

This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.

So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.

Kindly check the attached image below to see the required graph -

4 0
3 years ago
To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to contribute to the f
Fiesta28 [93]

Answer:

Contribute to the firm's strategic position as either low-cost leader or differentiator.

Explanation:

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to contribute to the firm's strategic position as either low-cost leader or differentiator. In order to achieve a sustainable competitive advantage, a firm must either perform its activities in a different way or it should perform totally different activities as compared to their competitors. This is the basic essence and logic behind getting a sustainable competitive advantage. In order to do it, a firm must perform each activity which should contribute to the firm's position in making it either a cost effective producer of the products or making entirely different products. In this way, by either becoming cost-effective leader or differentiator in the market, a firm must gain very strong strategic position in gaining sustainable competitive advantage which will be very hard for the competitors to compete with.

8 0
3 years ago
Government protection of ________________ was a grave concern for the founding fathers.
aleksklad [387]
The answer is property Rights
3 0
3 years ago
The following information is available for the Johnson Corporation:
mestny [16]

Answer:

Perpetual Inventory System:

1) Dr Inventory 157,000

Cr Accounts Payable 157,000

2) Dr Inventory 12,000

Cr Cash 12,000

3)Dr Accounts Payable 14,000

Cr Inventory 14,000

4) Dr Accounts Receivable 252,000

Cr Sales Revenue 252,000

5) Dr Cost of Goods Sold 150,000

Cr Inventory 150,000

6) No entry

Periodic Inventory System:

1)Dr Purchases 157,000

Cr Accounts Payable 157,000

2) Dr Freight - in 12,000

Cr Cash 12,000

3) Dr Accounts Payable 14,000

Cr Purchase Returns 14,000

4) Dr Accounts Receivable 252,000

Cr Sales Revenue 252,000

5) No entry

6) Dr Cost of Goods Sold 150,000

Dr Ending Inventory 32,000

Dr Purchase Returns 14,000

Cr Beginning Inventory $27,000

Cr Purchases 157,000

Cr Freight - in $12,000

Explanation:

Preparation of the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

PERPETUAL INVENTORY SYSTEM:

1) Dr Inventory 157,000

Cr Accounts Payable 157,000

(To record the purchase of inventory on account)

2) Dr Inventory 12,000

Cr Cash 12,000

(To record the payment of freight charges by cash)

3)Dr Accounts Payable 14,000

Cr Inventory 14,000

(To record the return of inventory purchased on account)

4) Dr Accounts Receivable 252,000

Cr Sales Revenue 252,000

(To record the sales made on account)

5) Dr Cost of Goods Sold 150,000

Cr Inventory 150,000

(To record the cost of goods sold)

6) No entry

PERIODIC INVENTORY SYSTEM:

1)Dr Purchases 157,000

Cr Accounts Payable 157,000

(To record the purchase of inventory on account)

2) Dr Freight - in 12,000

Cr Cash 12,000

(To record the payment of freight charges by cash)

3) Dr Accounts Payable 14,000

Cr Purchase Returns 14,000

(To record the return of inventory purchased on account)

4) Dr Accounts Receivable 252,000

Cr Sales Revenue 252,000

(To record the sales made on account)

5) No entry

6) Dr Cost of Goods Sold 150,000

Dr Ending Inventory 32,000

Dr Purchase Returns 14,000

Cr Beginning Inventory $27,000

Cr Purchases 157,000

Cr Freight - in $12,000

(To record the adjusting entry for inventory)

7 0
2 years ago
Other questions:
  • Atlas Company plans to sell 145,000 units in November and 190,000 units in December. Atlas's policy is that 15% of the following
    10·1 answer
  • Surreal Corp. has borrowed to invest in a project. The loan calls for a payment of $17,500 every month for three years. The lend
    13·1 answer
  • When sam goes to a restaurant, he always tips the server $2 plus 10% of the cost of the meal. if sam’s distribution of meal cost
    7·1 answer
  • Indicate whether the scenarios would result in an increase, a decrease, or no change in the long-run aggregate supply (LRAS) cur
    7·1 answer
  • Aksamit corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. data for the mos
    12·1 answer
  • Jose Inc. reports the following balances and amounts. The following information is presented in random order (amounts are in dol
    7·1 answer
  • Which of the following strategies are not generally used a. Dynamic by using options, futures, swaps, and other more complex der
    8·1 answer
  • Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intende
    13·1 answer
  • Alex
    9·1 answer
  • According to the law of supply - as the price of a good - service - or resource rises:______.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!