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maw [93]
3 years ago
14

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550

units. What is the approximate overhead cost per unit of Product A under activity-based costing?
Business
1 answer:
ELEN [110]3 years ago
4 0

Answer:

$3.00

Explanation:

Calaculation of the approximate overhead cost per unit of Product A under activity-based costing:

The first step is to calculate for the Activity 1 allocated to Product A line which is :

$87,000 × 3,000/5,800

=$261,000,000/5,800

=$45,000

The second step is to calaculate for Activity 2 allocated to Product A line which is :

$62,000 × 4,500/10,000

$279,000,000/10,000

=$27,900

The third step is to calculate for Activity 3 allocated to Product A line which is :

$93,000 × 2,500/7,750

=$232,500,000/7,750

=$30,000

The total overhead allocated to Product A

$45,000+$30,000+$27,900

= $102,900

Overhead per unit of Product A: $102,900/Annual production of 34,300 units

= $3.00

Therefore the approximate overhead cost per unit of Product A under activity-based costing will be $3.00

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In​ 2011, the value of the GDP deflator is 113. ​(Enter your response rounded to the nearest whole​ number.) In​ 2012, the value
kirill [66]

Answer:

2011 = 113

2012 = 119

Explanation:

The computation is shown below:

GDP deflator  = (Nominal GDP) ÷ (Real GDP) × 100

For 2011, it would be

                       = ($​13,495 billion) ÷ (​$11,919 billion) × 100

                       = 113

For 2012, it would be

                       = ($14,241 billion) ÷ (​$12,007 billion) × 100

                       = 119

In order to find out the GDP deflator, we divided the Nominal GDP by the Real GDP

3 0
3 years ago
Wait unemployment and search unemployment are both types of:
serious [3.7K]

Answer:

Option A. frictional unemployment, is the right answer.

Explanation:

Option A is correct because frictional unemployment is referred to as a situation when people change their job and remains unemployed during this period. For example, a person leaves his earlier job and starts finding a new job. It took him one month to find a new job, therefore, this period of one month during which he was unemployed and looking for a job is considered to be as the frictional unemployment.

6 0
3 years ago
The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $
diamong [38]

Answer:

5375

Explanation:

Given that:

Initial Fixed assets costing = $962000

Annual fixed costs = $403400

Variable cost per unit = $123.60

Sales price per unit = $249.00

Discount rate = 14%

Tax rate = 21%

The contribution per unit = Sales price - Variable cost

= $(249.00 - 123.60)

= $125.40

The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.

Assuming that the sales level = p

i.e.

NPV = PV(of inflows - of outflows)

Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate

= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate

where;

depreciation = initial fixed assest cost/ lifetime of the project

= (125.4p - 403400)*0.79 + (962000/6)*0.21

= (125.4p - 403400)*0.79 + (160333.33)*0.21

= (125.4p - 403400)*0.79 + 33670

Now, the PV of the inflows =PV factor(6 years, 14%) * inflows

= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}

= inflows * 3.8887

Replacing the value for inflows, we have:

=((125.4p - 403400)*0.79 + 33670)* 3.8887

The PV of the outflows = Initial Fixed asset cost = $962000

∴

Equating both together using:

PV(of inflows - of outflows) = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 =  962000

(99.066p - 318686 + 33670) * 3.8887 =  962000

(99.066p - 285016) * 3.8887 =  962000

385.24p - 1108341.72 = 962000

385.24p= 962000 + 1108341.72

385.24p= 2070341.72

p = 2070341.72 / 385.24

p ≅ 5375

6 0
3 years ago
The exchange rate between the British pound and the U.S. dollar is 2. In England, the price level is 1.0 and the one-year intere
kifflom [539]

Answer:

C) 1.6

Explanation:

The real exchange rate is calculated by multiplying the nominal exchange rate by the price level of the countries:

nominal exchange rate = 2 US dollars per British pound = $2/£

real exchange rate = $2/£ x (US price level / British price level) = $2/£ x 0.8 = $1.6/£

8 0
3 years ago
Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 sh
marin [14]

Answer:  

$1,114,000   -  total equity section

Balance sheet extract

common stock   (120,000 units)                   $720,000

common stock share premium                     $240,000

preference shares (8 000 units)                   $80,000

preference share premium                            $36,000

Profit (net income)                                       <u>     $ 38,000</u>

                                                                          $1,114,000      

Explanation:

common stock account (100,000 + 20,000) x $6 par value = $720,000

common stock premium per unit is calculated $18 minus par value of $6 = $12. total premium is 12 x 20,000 units issued= $240,000

Preference shares account = (5000+3000) x $10 = $80,000

preference share premium (22 minus 10) = $12 per unit

total preference shares premium is $12 x 3000 issued units= $36,000

8 0
3 years ago
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