Answer:
b. the money a company brings in from selling products equals the amount spent producing the products
Explanation:
At the breakeven point, the money a company brings in from selling products equals the amount spent producing the products
Answer:
Schrock record the $65,920 as the cost of the new van
Explanation:
The computation of cost of the new van is computed below:
= Purchase cost + sales tax + logo cost + safety testing cost
= $60,000 + $4,500 + $1,200 + $220
= $65,920
where,
Purchase cost is $60,000
Sales tax is $4,500
Logo cost is $1,200
Safety testing cost is $220
The van annual license is not included in the cost of new wan. Thus, it is not consider in the computation part.
Hence, Schrock record the $65,920 as the cost of the new van
No Decision have been made
Answer:
The total costs of Model A, B and C are $57,567.57,$ 115,175.68 and $67,756.76 respectively.
However,cost per unit of Models are highlighted below:
Model A $50
Model B $75
Model C $20
Explanation:
In calculating the total costs of models using activity-based costing system and activity based management, I multiplied the quantities by labor cost per unit and material cost per unit in order to arrive at total material costs and total labor costs.
However, in calculating overheads I multiplied direct labor hour per unit by the total quantity of product produced,then summed to together all labor hours to arrive total labor hours for all models with which I then shared the labor support overhead between the models.I repeated the same exercise for material support overhead as well.
Lastly, I added together all square feet ,then apportioned the facility to models based on each model's square feet divided by total square feet.
Find attached for detailed calculation.
