Questions for managing quality

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at

soldier1979 [14.2K]

Answer:

a. Activity rates for each activity

Fabrications = $18/dlh

Assembly = $7/dlh

Setup = $450/setup

Inspection = $230/inspection

b. Activity-based factory overhead per unit for each product

Speed Boats = $124.532

Bass boats = $302.068

Explanation:

Provided there are various activities as follows

Activity Cost Speed Boats Bass boats Total activity

Fabrications $522,000 7,250 dlh 21,750 dlh 29,000 dlh

Assembly $182,000 19,500 dlh 6,500 dlh 26,000 dlh

Setup $195,750 52 setups 383 setups 435 setups

Inspection $166,750 91 inspections 634 inspections 725 inspt.

a. Activity rates for each activity

Fabrications = $522,000/29,000 dlh = $18/dlh

Assembly = $182,000/26,000 dlh = $7/dlh

Setup = $195,750/435 setups = $450/setup

Inspection = $166,750/725 inspections = $230/inspection

b. Activity-based factory overhead per unit for each product

Activity Speed Boats Bass boats

Fabrications 7,250 x $18 = $130,500 21,750 X $ 18 = $391,500

Assembly 19,500 X $7 = $136,500 6,500 X $7 = $45,500

Setup 52 X $450 = $23,400 383 X $450 = $172,350

Inspection 91 X $230 = $20,930 634 X $230 = $145,820

Total of both = $311,330 = $755,170

Total units are 2,500 of each product

Cost p.u. = $311,330/2,500 =$124.532 = $755,170/2,500 =$302.068

a. Activity rates for each activity

Fabrications = $18/dlh

Assembly = $7/dlh

Setup = $450/setup

Inspection = $230/inspection

b. Activity-based factory overhead per unit for each product

Speed Boats = $124.532

Bass boats = $302.068

3 0

4 years ago

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15

Helga [31]

Answer:

D. Debit to Dividends Payable.

Explanation:

The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:

On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to subtract that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was added, therefore, the account was credited.

On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was discounted, because it is now in the hands of shareholders.

8 0

3 years ago

_____ is a type of job evaluation method in which individual jobs are evaluated in relation to every other job, based on a ranki

Kryger [21]

Answer:

Paired Comparison

Explanation:

Paired Comparison is a type of job evaluation method in which individual jobs are evaluated in relation to every other job, based on a ranking system, and an overall score is given for each job, determining the highest-valued job to the lowest-valued job. Here in paired comparison method an employee's work is basically evaluated by looking to every job being performed in that organisation, then after doing the comparison the relative scores are assigned to the job which needs to be evaluated. This method is different to the methods which most organisation use where jobs are evaluated specifically on the basis of your skills, performance and your knowledge. One of the drawback which this method has is that the employees start comparing themselves with other employees, not their job but their personalities and knowledge etc. which in turn creates jealousy factor which in return can decrease the overall performance of organisation.

6 0

3 years ago

Jane and Smith are considering the purchase of a home in downtown Minneapolis. They approached Larson’s Mortgagers Inc. to arran

sammy [17]

The answer is prequalification. This is a process or arranging with a mortgage lender in means of buying a home. It is an initial step and an essential step of having to manage and organize the financial needs that you need in order to buy a home.

4 0

3 years ago

Costs of $5,000 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping p

Sauron [17]

Answer:

d. $5,600

Explanation:

The computation of the total cost of merchandise inventory is shown below:

Cost of goods purchased $5,000

Add: Shipping charges (FOB point) $200

Additional necessary costs to purchase the goods $400

Buyer’s total cost of merchandise inventory $5,600

Hence, the total cost of merchandise inventory is $5,600

Therefore the option d is correct

3 0

3 years ago