Answer:
d. Fixed manufacturing overhead.
Explanation:
As we know that
The variable cost would remain the same in case of per unit while it could be changed in values while the fixed cost would remain the same in case of values but could be changed in per unit
But in case of the fixed manufacturing overhead, if the production level varies so it changes significantly and the direct material + direct labor are the direct cost
So the correct option is d.
Answer: $86,112
Explanation:
The MACRS depreciation rate for recovery period of 5 years is attached to the table below.
In the first year, there was a depreciation of;
= 299,000 * 20%
= $59,800
In the second year;
= 299,000 * 32%
= $95,680
In the third year;
= 299,000 * 19.20%
= $57,408
The Accumulated Depreciation in Year 3;
= 59,800 + 95,680 + 57,408
= $212,888
Book Value in third year;
= 299,000 - 212,888
= $86,112
Answer:
$37.80
Explanation:
Particulars Amount Calculations
Direct materials $7.00
Handling $2.80 ($3,500/5,000*4 parts)
Assembling $9.60 ($12,000/5,000*4 parts)
Packaging <u>$18.40 </u> ($5,750/1,250*4 parts)
Total manufacturing cost per chair <u>$37.80</u>
Answer:
D Select the cost allocation bases.
Explanation:
An allocation base OR cost allocation based is the foundation on which Cost accounting apportions the overhead costs. An allocation base can come inform of a quantity, such as the used machine hours, the consumed electricity kilowatt hours (kWh), or the square footage that is being occupied.
the ABC implementation step in order will be to select the cost allocation bases.
Answer:
See below
Explanation:
Activity rate = Overhead costs/Estimated driver
Customer service : 175 per serv. req.
Project bidding : 400 per bid
Engineering support : 750 per design change
Activity costs allocated = Activity rate × Driver consumed
Activity costs
Gough industries. 39,800
Been inc. 47,150
The Martin group. 139,300
Artic Air inc.
Customer profitability report for the year ended, December 31
Gough industries Been inc. Martin Grou
Revenues
1,800,000 960,000 240,000
Cost of goods sold
840,000 448,000 112,000
Gross profit
960,000 512,000 128,000
Selling and administrative activities:
Customer service
6,300 4,900 20,300
Project bidding
20,000 16,000 38,000
Engineering support
13,500 26,250 81,000
Total selling and administrative support
39,800 47,150 139,300
Operating income(loss)
920,200 464,850 (11,300)