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Eddi Din [679]
3 years ago
12

Activity Budgeted Activity Cost

Business
1 answer:
vampirchik [111]3 years ago
3 0

Answer:

Activity Rate = Activity Cost/ Driver Costs= $ 500,000/10,000= 50

    Activity             Budgeted         Budgeted      Budgeted

                            Activity Cost       Cost Driver      Activity Rate

Production       $500,000                    10,000                    50

Setup              $144,000                       450                         320

Inspection      $44,000                       1100                           40

Shipping         $115,000                     5750                          20

Customer service $84,000              600                            140

Total            $887,000

                              White               Brown        Powdered      Total

                                Sugar              Sugar            Sugar  

Units                        10,000              5000            5000      20,000

Production              250,000         125,000       125,000     500,000

Setup                   $ 27200              54,400         62400      144,000

Inspection          $ 8800                13200               22000      44000

Shipping               $ 23000            52,000            40,000       115000

Customer service   $ 8400           49,000            26,600      $ 84,000        

Total                       $ 317,400       $ 293,600        $276,000   $887,000

Per Unit Cost           $ 31.74              $58.72         $ 55

<u>Working </u>

                                White               Brown        Powdered      Total

                                Sugar              Sugar            Sugar  

Machine Hours  5000                   2500             2500           10,000

<u>Production             *50                   *50               *50</u>

<u>                             $ 250,000           $ 125,000     $ 125,000</u>

Number of setups  85                    170                 195             450

<u>Setup                       * 320               * 320              * 320</u>

<u>                              27,200              54,400            62,400</u>

Number of inspections  220           330              550             1100

<u>Inspection                     *40               *40                 *40</u>

<u>                                    8800             13200            22000</u>

Number of customer     1150           2600           2000          5750

Orders  

<u>Shipping                          *20             *20               *20</u>

<u>                                        23,000       52000             40,000  </u>

Number of customer  60                350                190           600

Service Requests

<u>Customer service      *140            *140                 *140</u>

<u>                                    8400          49000            26,600</u>

Units                        10,000              5000            5000      20,000

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Answer:

C. LIFO liquidation

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Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.

The difference between these two numbers is commonly referred to as LIFO Reserve.

LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.

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4 0
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Saddleback manufacturing ltd. purchased 5,000 shares of its own previously issued $10 value common stock for $95,000. Thes 5,000
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Answer:

The Purchased 5,000 shares at $95,000 would be considered as <u>Treasury stock</u> and it will be treated as <u>Asset</u>

Explanation:

Journal Entry                 Debit        Credit

Treasury stock           $95,000

Cash                                              $95,000

The 5,000 shares should be considered as authorized , issued and outstanding shares although they are deducted from paid in capital under stockholders equity section.

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Here, the value of the effective rate of interest<u>,</u> that is 0.1433 that would be multiplied with 100 to get the <u>percentage value</u> of 14.33%

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