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mote1985 [20]
3 years ago
9

the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and

allowances
Business
1 answer:
Marina CMI [18]3 years ago
7 0

Answer:

$87,650

Explanation:

The computation of the dollar amount of returns and allowances  is shown below:

= Gross sales for store B × customer returns and allowances percentage

= $876,500 × 10%

= $87,650

By multiplying the gross sales with the customer returns and allowances percentage we can get the dollar amount with respect to the returns and allowances and the same is to be considered

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Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost
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b) The computation of the overhead cost per unit for Pup and Pop-up Tents for Tent Master is computed as follows:

                               Pup Tents     Pop-up Tents

Overhead cost     $24 ($6 x 4)    $18 ($6 x 3)

c) The computation of the product cost per unit for Pup and Pop-up Tents is as follows:

Per Unit      Selling     Direct     Direct  Overhead     Product

                    Price   Materials   Labor    per unit    Cost / Unit

Pup tent       $ 78         $ 20      $ 45        $24             $89

Pop-up tent    73             25         30         $18             $73

d) The computation of the gross profit per unit (selling price per unit minus the product cost per unit) of Pup and Pop-up Tents is as follows:

Per Unit      Selling     Direct    Direct  Overhead   Product    Gross Profit

                    Price   Materials  Labor    per unit   Cost / Unit  (Loss) per unit

Pup tent      $ 78       $ 20      $ 45         $24             $89     ($11) ($78 - $89)

Pop-up tent   73          25          30          $18             $73       $0 ($73 - $73)

<h3>What does a product cost?</h3>

The determination of the product cost includes the costs of direct materials, direct labor, and overhead.  The overhead cost is allocated to each unit based on a predetermined overhead rate (budgeted overheads/budgeted usage) or using an activity-based costing technique.

<h3>Data and Calculations:</h3>

Budgeted overhead costs = $252,000

Budgeted direct labor hours = 42,000

<h3>Question Completion:</h3>

Tent Master produces Pup tents and Pop-up tents. The company budgets $252,000 of overhead cost and 42,000 direct labor hours. Additional information follows:

Per Unit      Selling Price  Direct Materials  Direct Labor  DL Hours

Pup tent          $ 78                   $ 20                   $ 45            4

Pop-up tent       73                       25                      30            3

<h3>Required: </h3>

1. Compute a single plantwide overhead rate assuming the company allocates overhead costs based on 42,000 direct labor hours.

2. Pup tents use 4 direct labor hours (DLH) per unit and Pop-up tents use 3 direct labor hours per unit. Compute the overhead cost per unit for each product.

3. Compute the product cost per unit for each product.

4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit).

Learn more about calculating the predetermined overhead rates at brainly.com/question/26372929

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