Answer:
activitity rate:
sprocked unit cost: $ 38.95
hub units cost: $ 93.00
Explanation:
We divide teh cost pool over the total of the cost driver.
This give us the activitty rate.
Then we multiply each rate by the use of each product:
And divide by the total units to get the unti manufacturing overhead
Finally we add the cost component:
Sprocked:
materials $ 18 + $ 15 x 0.40 units + $ 14.95 = 38.95
Hubs
materials $ 32 + $ 15 x 0.80 units + $ 49 = 93
Answer:
days on inventory 57 + collection cycle 163- payment cycle 63
CCCT = 157 days
Explanation:
The cash-to-cash measures the times from the company paid his good from the time it collect from the customer:
days inventory outstanding + collection cycle - payment cycle
<u>days inventory outstanding:</u>
Where:
where:
COGS $ 1,790,000
Beginning Inventory: $ 273,000
Ending Inventory: $ 290,000
Average Inventory: $ 281,500
Inventory TO 6.358792185
Days on Inventory 57
<u>Collection cycle:</u>
where:
Purchases: 1,575,000
Beginning AP: 227,500
Ending AP: 316,200
Average AP: 271,850
AP TO 5.793636196
payment cycle 63
<u>Collection cycle</u>
Sales 102,000
Average AR 45,500
AR TO 2.241758242
collection cycle 163