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Lapatulllka [165]
3 years ago
7

Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activ

ity for each of the company's three activity cost pools are as follows:
Estimated Expected Activity
Activity Cost Pools Overhead
Cost Product A Product B Total
Product design $23,500 400 100 500
Assembling $18,000 500 200 700
Supporting customers $34,600 600 300 900

The activity rate under the activity-based costing system for Supporting customers is closest to:
A. $36.24
B. $38.44
C. $84.56
D. $115.33
Business
1 answer:
olya-2409 [2.1K]3 years ago
5 0

Answer:

B) = $38.44

Explanation:

<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>

Activity rate is calculated as:

<em>Activity cost for the period / Total cost drivers for the period</em>

<u><em>Activity rate for supporting customers:</em></u>

<em>The appropriate cost driver to allocate supporting customer activity is the number of customers as given.  This is so because it is most likely that the number of customers served will be a major factor that influences the supporting customers activity costs. </em>

<u><em>Activity rate for supporting customers </em></u>

= Supporting customers overhead/total number of customers

= $34,600/(600+300)

= $38.44

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Answer:

c. cost-leadership strategy

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A business produces 10 units of output. Its average variable cost (AVC) = $25, average fixed cost (AFC) = $5, and marginal cost
kramer

Answer: $30

Explanation:

Given that,

Average variable cost (AVC) = $25

Average fixed cost (AFC) = $5

Marginal cost (MC) = $30

Average total cost (ATC) = Average fixed cost (AFC) + Average variable cost (AVC)

                                          = $5 + $25

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Therefore, average total cost is the sum of average fixed cost and average variable cost. Alternatively, average total cost is calculated by dividing total cost to units of output produced.

6 0
3 years ago
Jasper makes a $31,000, 90-day, 6.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is:__
pochemuha

Answer:

the amount of interest that is collected is $503.75

Explanation:

The computation of the amount of interest that is collected is shown below:

= Cash loan × number of days ÷ total number of days × rate of interest

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= $503.75

Hence, the amount of interest that is collected is $503.75

This is the answer but the same is not provided in the given options

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And, the same is to be considered

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2 years ago
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