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ratelena [41]
3 years ago
12

Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the compa

ny allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) $260,000 Building occupancy 600,000 Personnel costs 110,000 Total common costs $970,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) 20,000 40,000 Payroll $380,000 $180,000 Computer time (hours) 200 220 Computer storage (megabytes) 4,050 -0- Equipment value $200,000 $250,000 Operating profit (pre-allocations) $555,000 $495,000 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B
Business
1 answer:
skad [1K]3 years ago
5 0

Answer:

$136,190

Explanation:

The computation of computer cost allocated to Division B is shown below:-

Computer cost allocated to Division B = Computer service cost × Computer time of Division B ÷ Total computer time.

= $260,000 × 220 ÷ (200 + 220)

= $260,000 × 220 ÷ 420

= $260,000 × 0.5238

= $136,190

Therefore for computing the computer cost allocated to Division B we simply applied the above formula.

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<span>Actually in this scenario the business buyer should do type of transaction that would merge the buying business with the parent business or company, and also the business buyer should buy all the shares and stakes of the buying business along with the copyrights, which would cover all the buying companies performing assests along with non-performing assests all in one shot surely with mutual merging.</span>
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4 years ago
Read 2 more answers
Novak Co. uses the net method to account for cash discounts. On June 1, 2020, it made sales of $52,500 with terms 3/15, n/45. On
Misha Larkins [42]

Answer:

Explanation:

The journal entries are shown below:

On 1 June 2020

Accounts receivable A/c Dr  $50,925

       To Sales revenue $50,925

(Being goods are sold on credit)

On July 12 2020

Cash A/c Dr $50,925

     To Accounts receivable A/c  $50,925

(Being cash received is recorded)

The computation is shown below:

= Sales amount - discount

= $52,500 - $1,575

= $50,925

And, The discount = Sales amount × discount rate

= $52,500 × 3%

= $1,575

6 0
3 years ago
What factor reflects the 'cost of money'?
abruzzese [7]

Answer:

Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.

5 0
3 years ago
The primary reason that governments tax economic activity is:
sattari [20]

The primary reason why the government taxes economic activities is to generate revenue in order to pay for services rendered t the citizens.

<h3>What is Tax?</h3>

Tax is a mandatory financial charge or levy imposed on taxpayers by a governmental organization in order to generate revenue to fund government spending.

Taxes are imposed on economic activities primarily to generate revenue for the government and fund government spending. Thes taxes are used to build infrastructures and pay workers.

Learn more about Tax here:

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6 0
2 years ago
Robin wants to find the perfect gift for her grandparents' 50th wedding anniversary. She started looking for the gift last month
Gala2k [10]

Answer:

Extensive Problem Solving.

Explanation:

Robin is engaging in extensive problem solving by trying to get all the information she needs in order to make a choice on the best gift for her grandparent's 50th wedding anniversary.

Extensive problem solving: This can be defined as the process by which a buyer makes decision on the kind of product to purchase without having a prior knowledge or information about the product. It could be stressful and time consuming.

Extensive problem solving usually arise when buyers discovers there is a need that is new to them and the need requires a lots of effort to satisfy it. It involves getting information on the product to selecting the best brand. Robin is searching for a gift that will be accepted by both her grandmother and grandfather.

6 0
3 years ago
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