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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

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Explanation:

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Grace [21]
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BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its
sineoko [7]

Answer:

The contribution margin ratio will increase.

Explanation:

Giving the following information:

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5 0
3 years ago
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Cloud [144]

The correct answer would be option C, Socialist System.

Socialist system is another term for a planned economy.

Explanation:

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The system of planning in this economic system can either be centralized, decentralized or participatory.

This economic system is regulated by the Government. All decisions about the capital, lands, buildings, machinery, or other resources are taken by the government.

The production, prices, distribution, etc of the products or services are regulated centrally by the government.

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6 0
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Which of the following statements is correct?A.The payment of a cash dividend reduces net income.B.Cash received from issuing co
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Answer:

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Explanation:

As when common stock is issued, it provides cash to the company, for any kind of investments, or expense to be made, for running the business.

Financing activities are those which arrange monetary assets generally cash for the company, issue of securities, issue of bonds, borrowings as loans or note payable.

Thus, the statement B is correct.

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Purchasing of any equipment is investing as it will create an asset for the company.

7 0
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