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
Delvig [45]
3 years ago
11

Evert Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; th

e other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Evert incurred $540,000 of inspection cost. Evert recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow: Direct Labor Hours Number of Batches Number of Inspectors Number of Square Feet High caliber 6,000 20 3 30,000 Low caliber 21,000 20 2 70,000 Total 27,000 40 5 100,000 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $540,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.)
Business
1 answer:
Allisa [31]3 years ago
4 0

Answer:

The calculation is shown below:-

Explanation:

a. Unit-level activities

Total direct labor hours = 27,000

Total inspection cost = $540,000

Per direct labor hours cost = $540,000 ÷ 27,000

= $20

Allocations

High caliber = 6,000 × $20

= $120,000

Low caliber = 21,000 × $20

= $420,000

b. Batch-level activities

Total number of batches = 40

Total inspection cost = $540,000

Cost per batch = $540,000 ÷ 40

= $13,500

Allocations

High caliber = $13,500 × 20

= $270,000

Low caliber = $13,500 × 20

= $270,000

c. Product-level activities

Total number of inspections = 5

Total inspection cost = $540,000

Cost per inspections = $540,000 ÷ 5

= $108,000

Allocation

High caliber = $108,000 × 3

= $324,000

Low Caliber = $108,000 × 2

= $216,000

d. Facility-level activities

Total number of square feet = 100,000

Total inspection cost = $540,000

Cost per square feet = $540,000 ÷ 100,000

= $5.4

Allocation

High caliber = 30,000 × $5.4

= $162,000

Low caliber = 70,000 × $5.4

= $378,000

You might be interested in
An example of a transfer payment is:________
Fed [463]

Unemplyment benefits are an example of a transfer payment. So, the correct option of this question is b.

Transfer payment is payment made or income received in which goods and services are not paid is known as transfer of payment. It is one-way payment. Transfer Payment is also known as Government transfer as it is given by the Government without goods and services being received in return. Transfer of payment is based on the concept of donor and recipient. A donor gives up something of value without receiving anything in return.

Unemployment benefits are given by the Government without receiving any goods or services in return so it is considered a transfer payment. The government collects money through taxes then this money is reallocated to citizens equally through welfare services.

Unemployment benefits are also provided by the Government therefore it is an example of transfer payment.

While other options are incorrect because rent, wages and government purchases dont have relation with transfer payment.

Therefore, the correct option of the given question is b i.e. Unemployment benefits.

You can learn more about transfer payment at

brainly.com/question/7176766

#SPJ4

6 0
2 years ago
In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes bac
PtichkaEL [24]

Answer:

Feb. 2021

  Dr Gift Card Liability         $20

     Cr Gift Card Revenue    $20

(to record revenue arisen from oustanding Gift Card Liability)

Explanation:

Under GAAP, the accounting for Gift Card is quite simple. When the gift card are sold, Gift Card Issuer receives Cash (Debit Cash) and assume the Liability (Cr Liability) to anyone owning the gift card for later providing of goods/services priced at the Cash amount that had been received.

It is not until Gift Card is redeemed that Gift Card Issuer is allowed to record revenue (Credit Revenue) as it is an actual point of time when the provide of goods/services takes place. Also at the same time, once the goods/services are provided, they Liability assumed earlier in time through Gift Card issuance will be discharged to the extent of the price of goods/services provided.

7 0
3 years ago
Walmart reduced waste in packaging by 3,500 tons by __________.
mash [69]
Walmart noticed that the packaging in some of their products only led to waste. Based from this observation, Walmart established a new policy requiring its toy suppliers to reduce the packaging of their products by one square-inch. Just from this reduction alone, Walmart's waste from packaging alone decreased by 3,500 tons. 
6 0
3 years ago
Bramble Corp. on July 15 sells merchandise on account to Sheridan Company for $4000, terms 3/10, n/30. On July 20 Sheridan Compa
Vaselesa [24]

Answer:

Amount of cash flow will be $2328

So option (B) will be the correct answer

Explanation:

We have given total merchandise = $4000

And return merchandise = $1600

Here \frac{3}{10} means if Sheridan Company makes the payment within 10 days then he will get discount of 3 % as in the question he makes the payment within 10 days so he will will get 3 % discount

Now amount of cash received = total merchandise - return merchandise

= $4000 - $1600 = $2400

Now discount is 3 %

So after discount amount received =2400-2400\times 0.03=2400-72=$2328

So option (B) will be the correct answer

4 0
3 years ago
Valorous Corporation will pay a dividend of $2.00 per share at this year's end (at t = 1) and a dividend of $2.50 per share at t
seraphim [82]

Answer:

The maximum price that should be paid for one share of this stock today is $46.86

Explanation:

Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.

The price of this stock at time zero (t=0) will be,

Prcie = 2 / (1+0.08)  +  2.5 / (1+0.08)^2  +  50 / (1+0.08)^2

Price = $46.86

8 0
3 years ago
Other questions:
  • Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and adminis
    9·1 answer
  • Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spa
    12·1 answer
  • St. Book​ Shop's unadjusted Merchandise Inventory at June ​30, 2018 was $ 5 comma 600. The cost associated with the physical cou
    9·1 answer
  • Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs ex
    12·1 answer
  • Investors in middle management are most likely to be investing because they're
    9·2 answers
  • A teenager learning about computers and programming for the first time writes a simple program meant to disrupt the function of
    9·1 answer
  • You decide to become a neurosurgeon. After high school, you will need four years of college, four years of medical school, five
    12·1 answer
  • Tom Lewis, an individual taxpayer, performs services for the Red Cross at an out-of-town location for three weekends during the
    9·1 answer
  • The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected va
    8·1 answer
  • How many peolpe come in a job in the moring
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!