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andre [41]
3 years ago
9

Swifty, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments

and 200 pressure gauges were produced, and overhead costs of $90,810 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities

Cost Drivers

Total Cost

1. Materials handling Number of requisitions
$38,850

2. Machine setups Number of setups
26,190

3. Quality inspections Number of inspections
23,520

$88,560


The cost driver volume for each product was as follows.
Cost Drivers

Instruments

Gauges

Total

Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Air United, Inc. manufactures two products: missil

Air United, Inc. manufactures two products: missil
Determine the overhead rate for each activity.
Overhead Rate

Materials handling $


Machine setups $


Quality inspections $
Business
1 answer:
aniked [119]3 years ago
7 0

Answer:

Material handling= $37 per requisitons

Setups= $54 per setup

Inspections= $48 per inspection

Explanation:

Giving the following information:

Activities - Cost Drivers - total cost

Materials handling - Number of requisitions - $38,850

Machine setups - Number of setups - $26,190

Quality inspections - Number of inspections - $23,520

Number of requisitions= 1,050

Number of setups= 485

Number of inspections= 490

To calculate the estimated manufacturing overhead rate we need to use the following formula for each activity cost pool:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Material handling= 38,850/1,050= $37 per requisitons

Setups= 26,190/485= $54 per setup

Inspections= 23,520/490= $48 per inspection

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Olga is the sales rep for ATV Communication Systems. She wants to bid on the RFP issued by Manitoba University for distance lear
Dmitriy789 [7]

Answer:

B. any experience with the product they wish to purchase

Explanation:

Since Manitoba University is completely new and that it do not have any information about the Communication system as of ATV.

As she wants to acquire the Manitoba bid she needs to provide thorough information and that the university is completely new, accordingly there is a clear demonstration required, for the service.

The university do not know the facts and is dealing in these things first time and because of that it is necessary.

Thus, correct option is statement B.

7 0
3 years ago
Instant Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information fo
Afina-wow [57]

Answer:

a. $21

b. $1,890,000

Explanation:

a. The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated  computer hours)

= $2,100,000 ÷ 100,000 hours

= $21

b. Now the applied overhead which equals to

= Actual computer hours  × predetermined overhead rate

= 90,000 hours × $21

= $1,890,000

5 0
3 years ago
Marketing links producers to
satela [25.4K]
Marketing links producers to customers.
That is the answerzb
8 0
2 years ago
Describe an advertisement you've seen that uses a desire based marketing message. What desire does this ad appeal to? (2-4 sente
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6 0
3 years ago
Read 2 more answers
13. Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the raw
timurjin [86]

Answer:

80000 unit of Alpha

Explanation:

This is a Limiting factor/resource constraint question. In certain situations entities suffer from shortage of necessary resources (e.g: shortage of material, labor hours, machine hours), in such circumstances entities strive to allocate the constraint resources to the production of those products which generate the highest contribution per limiting factor and help maximize total contribution. In this case the limiting factor for Cane is Raw material.

Lets suppose that each unit of <em>Alpha and Beta sell for $120 and $80</em> respectively and variable cost per unit of <em>Alpha and Beta is $69 and $20 </em>respectively. Each unit of <em>Alpha and Beta require 2 and 5 pounds</em> of raw material for production respectively.

Now that we have supposed the data we have to compute contribution per unit and then contribution per limiting factor and based on the ranking (i.e highest first) of contribution per limiting factor we decide which product should be given priority for resource allocation.

<em>Lets calculate contribution per unit.</em>

Alpha:

Contribution per unit= SP-VC

Where, SP stands for selling price and VC stands for variable cost.

CPU= 120-69

CPU=$51

Beta:

Contribution per unit= 80-40

CPU=$40

<em />

<em />

<em>Now, lets calculate contribution per limiting factor.</em>

Alpha:

CLF: $51÷2

CLF: $25.5        1st Rank

Beta:

CLF: $40÷5

CLF: $8              2nd Rank

So clearly Alpha has a greater contribution per limiting factor and it implies that Alpha will earn the highest contribution margin therefore Cane should produce and allocate resources to Alpha first and then Beta if there remains any?

Profit maximizing output:

It requires 2 pounds of raw material to produce one unit of Alpha (i.e 80000×2=160000) Therefore Cane should produce 80000 units of Alpha only in order to maximize its profits.

3 0
3 years ago
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