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3 years ago

Activity Cost Activity Allocation Base Allocation Rate

Business

1 answer:

Flura [38]3 years ago

3 0

Answer:

Following is attached the solution to each part of the given question.

I hope it will help you a lot!

Explanation:

You might be interested in

Ceteris paribus, in a closed economy, if consumers become more optimistic ________.

alexandr402 [8]

Ceteris paribus, in a closed economy, if consumers become more optimistic the equilibrium interest rate should increase .

So the answer is the equilibrium interest rate should increase

5 0

3 years ago

Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions

Vsevolod [243]

Answer:

Results are below.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing income statement:

Total unitary variable production cost= (24 + 16 + 2 + 3)= $45

Sales= 73*51,000= 3,723,000

Total variable cost= 51,000*45= (2,295,000)

Contribution margin= 1,428,000

Fixed manufacturing overhead= (784,000)

Fixed selling and administrative expense= (672,000)

Net operating income= (28,000)

Absorption costing income statement:

Unitary production cost= (24 + 16 + 2) + (784,000/56,000)

Unitary production cost= $56

Sales= 73*51,000= 3,723,000

COGS= 51,000*56= (2,856,000)

Gross profit= 867,000

Total selling and administrative= 672,000 + 3*51,000= (825,000)

Net operating income= 42,000

The difference between both methods is the fixed manufacturing overhead allocated in ending inventory.

6 0

3 years ago

Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p

sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

5 0

3 years ago

Suppose that the equation for the SML is Y = 0.05 + 0.07X, where Y is the average expected rate of return, 0.05 is the vertical

timurjin [86]

Answer:

Risk free interest rate is 5%

Y is 15.5% at a Beta of 1.5

X is 0.29 when Y is 7%

Explanation:

Risk free interest is 0.05 which 5% as given in the equation

The average expected return is given by Y

Y=0.05+0.07X

Since Beta is the same as X, when equals 1.5,Y is calculated thus

Y=0.05+0.07(1.5)

Y=0.05+0.105

Y=0.155

Y=15.5%

The value of Beta at an average return of 7% is computed thus:

7%=0.05+0.07X

where X is the unknown

0.07=0.05+0.07X

0.07-0.05=0.07X

0.02=0.07X

X=0.02/0.07

X=0.29

The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.

6 0

3 years ago

Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.42 per pers

Alik [6]

Answer:

(a) $3.48 per unit

(b) 64.2%

Explanation:

(a) Anthony’s contribution margin per unit:

= Selling price per unit - Variable cost per unit

= $5.42 - $1.94

= $3.48 per unit

Therefore, the Anthony’s contribution margin per unit is $3.48 per unit.

(b) Anthony's contribution margin ratio:

= (Contribution Margin Per unit ÷ Selling Price per unit) × 100

= ($3.48 per unit ÷ $5.42 per unit) × 100

= 0.6420 × 100

= 64.20%

Therefore, the Anthony's contribution margin ratio is 64.2%.

8 0

3 years ago