1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tanzania [10]
3 years ago
7

Snowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and

testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Cost Pool Total Cost Driver Repair and maintenance on assembly machine $ 105,600 Number of units produced Programming cost 143,400 Number of programming hours Software inspections 11,000 Number of inspections Product testing 15,000 Number of tests Total overhead cost $ 275,000 Expected activity for each product follows: Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 19,800 2,000 190 1,400 Decoder Q 46,200 1,000 60 1,100 Total 66,000 3,000 250 2,500 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Direct Labor Hours Decoder P 6,600 Decoder Q 15,400 Total 22,000 Required Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.
Business
1 answer:
Rainbow [258]3 years ago
4 0

Answer:

Using Direct Labour hours;

The cost per unit for Decoder P=$5.76

The cost per unit for Decoder Q=$5.76

Using Activity based costing;

The cost per unit for Decoder P=$7.48

The cost per unit for Decoder Q=$5.01

Explanation:

A)Total Overhead cost= $275,000

Total Labour Hours=22,000

P Total Overhead  =6,600/22,000*$275,000=$82,500

Overhead cost per unit=$82,500+$31,680/19,800units=$5.76

Fixed cost=$105,600

19800/66000*$105,600=$31,680

Q Total overhead  =15,400/22,000*$275,000=$192,500

Overhead cost per unit=$192,500+$73,920/46,200units=$5.76

Fixed cost=$105,600

46,200/66000*$105,600=$73,920

B)Using activity based costing;

Total Overhead cost= $275,000

Repair and Maintenence Cost = $105,600

Total Labour Hours=22,000

P Overhead  =6,600/22,000*$275,000=$82,500

Overhead cost perunit=$82,500/19,800units=$4.16

P Activities overhead=(2000+190+1400)/5750*$105,600=$65,931.13

Activity cost per unit=$65,931.13/19,800units=$3.32

Total Overhead cost =$4.16+$3.32=$7.48

Q Total overhead  =15,400/22,000*$275,000=$192,500

Overhead cost per unit=$192,500/46,200units=$4.16

Q Activities overhead=(1000+60+1,100)/5750*$105,600=$39,668.87

Activity cost per unit=$39,668.87/46,200units=$0.85

Total Overhead cost =$4.16+$0.85=$5.01

You might be interested in
The residents of Bucktown, Illinois, place their trash at the curb each Wednesday morning to be picked up by Municipal Crews. Ex
svetoff [14.1K]

Answer: 8.56crews

Explanation:

To get critical fractile probability SL,

We stock up the local trash collection capacity.Cost of overstocking by 1 ton =MC = 625/5 = $125Cost of understocking by 1 ton = additional cost of using outside trash pick up = MB = $650-$125 = $5

SL = Prob(RQ) = MB /( MB + MC) = 525/(125 + 525) = 0.8077 appropriate # of crews = 8.56 crews

8 0
3 years ago
Lito works for a business that is part of a large corporation with many diverse business lines that operate autonomously. Lito’s
irinina [24]

Answer: Conglomerate structure

                           

Explanation: In simple words, conglomerate structure refers to the structure under which many entities operate in different industries under a single corporation. In other words, it is a different name for parent subsidiary relationship.

In the given case, Lito group owns different firms in different industries. Hence from the above we can conclude that the group uses conglomerate structure.

4 0
3 years ago
Oriole Company has a balance in its Accounts Payable control account of $8,170 on January 1, 2020. The subsidiary ledger contain
dem82 [27]

Complete question:

Oriole Company has a balance in its Accounts Payable control account of $8,170 on January 1, 2020. The subsidiary ledger contains three accounts: Hale Company, balance $2,550; Janish Company, balance $1,580; and Valdez Company. During January, the following payable-related transactions occurred.

Purchases Payments Returns  

Hale Company $6,529 $5,972 $ -0-  

Janish Company   5,066   2,087 2,215  

Valdez Company   6,647   6,790   -0-

What is the January 1 balance in the Freeze Company subsidiary account?

What is the January 31 balance in the control account?

Balances in the subsidiary accounts Bixler $ Cuddyer $ Freeze$

Which January transaction would not be recorded in a special journal?

Solution:

What is the January 1 balance in the Freeze Company subsidiary account?

8,170 - 2,550 - 1,580 = 4040

What is the January 31 balance in the control account?

8,170 + 6,529 + 5,066 + 6,647 - 5,972 - 2,087 - 6,790 - 2,215 = 1,995

Compute the balances in the subsidiary accounts at the end of the month.  

Hale 2,550 + 6,529 - 5,972 = 3,107

Janish 1,580 + 5,066 - 2,087 - 2,215 = 2,344

Valdez 4040 + 6,647 - 6,790 = 3,897

Which January transaction would not be recorded in a special journal?

Returns Purchases Payments

The purchase return for Brown of $2,215

6 0
3 years ago
Please answer all 4 of these fast
jeka57 [31]

Answer:

15. A - Net Loss

Rest of the questions are bad quality, take a better picture.

Explanation:

7 0
3 years ago
Read 2 more answers
HH Companies has identified two mutually exclusive projects. Project A has cash flows of −$40,000, $21,200, $16,800, and $14,000
gulaghasi [49]

Answer:

At any rate.

Explanation:

The function to calculate the NPV of each project is the same, therefore it is not expected that potential NPV of projects meet in any time in the future, so always would be a project better than the other regardless the discount rate used. In this case, the project B will be always better than project A

3 0
3 years ago
Other questions:
  • When rebuilding a steering system, a can of bolts and nuts was somehow lost. Technician A says to simply go to the hardware stor
    12·1 answer
  • In which phase of the job search cycle will you write a thank-you letter to the company following your interview?
    14·1 answer
  • Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. T
    9·1 answer
  • give me an example of something you learned from a specific class and described how it will help you be successful in the future
    11·1 answer
  • Managers lead in a wide variety of situations and organizations and have various kinds of subordinates performing diverse tasks
    8·1 answer
  • Jarrod's Meat Shop doubles as a butcher shop and a sandwich shop that sells to both individuals and a nearby hospital system. On
    14·1 answer
  • When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________
    13·1 answer
  • We opened the doors to Data Driven Donuts last year. What type of analysis tells us how we performed the first year?
    6·1 answer
  • Many commuters in New York install radio frequency identification (RFID) devices on their cars that can be read automatically as
    13·1 answer
  • How much money did daniel radcliffe make from harry potter
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!