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EastWind [94]
3 years ago
14

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last ye

ar. How much in fringe benefit costs should be allocated to "A-line"?
a. $ 60,000
b. $120,000
c. $180,000
d. $ 90,000
d. $ 3,000
Business
1 answer:
fomenos3 years ago
3 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last year.

First, we need to calculate the allocation rate based on number of employees:

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

Estimated allocation rate= 180,000/30= $6,000 per employee.

Now, we can allocate fringe costs to the A-line:

Allocated fringe costs= Estimated Estimated allocation rate* Actual amount of allocation base

Allocated fringe costs= 6,000*10= $60,000

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3 years ago
Maurice can drive or fly from Jacksonville, Florida to Atlanda, Georgia, for a one-day business trip. If he drives, he will be a
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Answer:

c. $150.

Explanation:

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(8 hours taking a plane against 3 hours if driving)

As the income per hour is 30 dollar it can generate;

5 hours x $30 per hour = $150

Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150

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3 years ago
Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system u
vampirchik [111]

Answer:

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Explanation:

A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.

Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

8 0
3 years ago
Sally lee, the engineering manager, delegates tasks as a good manager should. However, mark hayes, the engineering director, has
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Answer:

The definition becomes defined in the clarification paragraph below, according to the particular circumstance.

Explanation:

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7 0
3 years ago
"Gamboa, Inc. sold 100 selfie sticks for $25 each. If the selfie sticks had an average cost of $1 to produce, how much profit di
IRISSAK [1]

Answer:

$2400

Explanation:

Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:

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Given that:

The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25

From Average cost = Total cost / number of units.

Substituting gibes:

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Revenue = $25 × 100 = $2500

Profit = Revenue - Total cost

Profit = $2500 - $100 = $2400

Total cost = $2400

5 0
3 years ago
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