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Mnenie [13.5K]
2 years ago
5

Diehl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following d

ata concerning its costs and its activity-based costing system: Costs: Manufacturing overhead $480,000 Selling and administrative expenses 100,000 Total 580,000 Distribution of resource consumption: Activity Cost Pools Customer 85% 20% Order Size Support Other Total 10% | 100% 5% Manufacturing overhead Selling and administrative expenses 60% 096 | 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs You have been asked to complete the first-stage allocation of costs to the activity cost pools How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision- making?
Business
1 answer:
photoshop1234 [79]2 years ago
4 0

Answer:

 $84,000

Explanation:

The computation is shown below:

Particulars                      Order Size Customer support  Other Total

Manufacturing overhead   $24,000   $408,000                $48,000               480000

Selling and administrative

expenses                      $60,000 $20,000                        $20,000        $100,000

Total                              $84,000 $428,000                $68,000 $580,000

The allocation of manufacturing overhead is done in 5% 85% 10% 100%

The allocation of selling and administrative expense is done is 60% 20% 20% 100%

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The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would l
Art [367]

Answer:

2.6 years

The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = amount invested / cash flow

Cash flows is used in calculating the payback period.

To derive the payback period from net income, add depreciation to net income

$82,000 + $42,000 = $124,000

$321,000 / $124,000 = 2.6 years

I hope my answer helps you

4 0
3 years ago
Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net in
PtichkaEL [24]
<h2>Answer: $78,00</h2>

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Explanation:

4 0
3 years ago
The Shoe Box is considering adding a new line of winter footwear to its product lineup. When analyzing the viability of this add
Sindrei [870]

Answer:

D)the research and development costs to produce the current winter footwear samples.

Explanation:

Research and development costs associated with the current winter footwear samples will not impact the performance of the proposed new line.

When analyzing the viability of the new product line up, the company should only consider the projected expenses and revenues arising from the project. A project is viable if its benefits outweigh its shortcomings. One way of establishing viability is by doing a cost-benefit analysis.

For the Shoe Box company, the new project line may have some effects on the sales of current products. The new projects will demand new counters. The company must also consider expected revenues and taxes. All these have elements of cost and benefits directly associated with the proposed product line.

7 0
3 years ago
A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.
Mamont248 [21]

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

5 0
3 years ago
Which of the following housing decisions provides a person with both
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C selling a share in cooperative
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3 years ago
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