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Travka [436]
3 years ago
11

Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead

costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools Overhead Costs: Production overhead Office expense Total $150,000 100,000 $250,000 Distribution of resource consumption Activity Cost Pools MakingJob Support Other Total Awnings 45% Production overhead Office expenses 40% 15% 100% 8% 6590 2700 100% The amount of activity for the year is as follows Activity Cost Pool Making awnings Job support Other Annual Activity 5,000 metres 200 jobs Not applicable Required: a) Prepare the first-stage allocation of overhead costs to the activity cost pools b) Compute the activity rates for the Making Awnings and Job Support activity cost pools c) Calculate the overhead cost of a job# 452F that involves making 80 yards of awnings d) Prepare a report that determines the margin ofjob# 452F which has direct materials and direct labour cost of $3,000 and sales revenue from of $4,000

Business
1 answer:
viva [34]3 years ago
8 0

Answer:

a  

First stage allocation of overhead costs to the activity cost pools

                                      Making Awnings   Job Support   Other     Total

Production Overhead 67500               60000  22500 150000

Office Expenses           8000               65000 27000 100000

b  

Activity rates (cost per unit of activity)

                                                              Making Awnings    Job Support  

Production Overhead (Cost/annual activity)  13.5               300  

Office Expenses (8000/5000)(65000/200)  1.6                  325

Find attachments for c and d part.

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Which of the following best addresses the economic question For whom to produce?
Nonamiya [84]

Answer:

D. InFocus conducts focus groups to determine its target market.

Explanation:

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3 0
3 years ago
Lisa changes her filing status on last years tax return, and her standard deduction went up. Which of these could have been the
ira [324]

Lisa changes her filing status on last years tax return, and her standard deduction went up. Which of these could have been the change she made? "Single" to "head of household". Due to Lisa becoming head of household, she is able to claim her family as a deduction.

7 0
3 years ago
Suppose that the market demand curve for bean sprouts is given by P = 1,660 - 4Q, where P is the price and Q is total industry o
a_sh-v [17]

Answer:

In equilibrium, total output by the two firms will be option e= 300.  

Q = q_{1} + q_{2}

Q = 100 + 200

Q = 300

Explanation:

Data Given:

Market Demand Curve = P = 1660-4Q

where, P = price and Q = total industry output

Each firm's marginal cost = $60 per unit of output

So, we know that Q =  q_{1} + q_{2}

where q_{} being the individual firm output.

Solution:

P = 1660-4Q

P = 1660- 4(q_{1} + q_{2})

P = 1660 - 4q_{1} - 4q_{2}

Including the marginal cost of firm 1 and multiplying the whole equation by q_{1}

Let's suppose new equation is X

X =  1660q_{1} - 4q_{1} ^{2} - 4q_{1}q_{2} - 60q_{1}

Taking the derivative w.r.t to q_{1}, we will get:

X^{'} = 1660 - 8q_{1} - 4q_{2} - 60 = 0

Making rearrangements into the equation:

8q_{1} + q_{2} = 1660 - 60

8q_{1} + q_{2} = 1600

Dividing the whole equation by 4

2q_{1} +q_{2} = 400

Solving for q_{1}

2q_{1} = 400 - q_{2}

q_{1} = 200 - 0.5 q_{2}  

Including the marginal cost of firm 1 and multiplying the whole equation by q_{2}

P = 1660 - 4q_{1} - 4q_{2}

Let's suppose new equation is Y

Y =  1660q_{2} - 4q_{1}q_{2} -4q_{2} ^{2} - 60q_{2}

Pugging in the value of q_{1}

Y =  1660q_{2} - 4q_{2}(200 - 0.5 q_{2}) -4q_{2} ^{2} - 60q_{2}

Y =  1660q_{2} - 800q_{2} +2q_{2} ^{2} -4q_{2} ^{2} - 60q_{2}

Y =  1600q_{2} - 800q_{2} -2q_{2} ^{2}

Taking the derivative w.r.t q_{2}

Y^{'} = 1600 - 800 - 4q_{2} = 0

Solving for q_{2}

4q_{2} = 800

q_{2} = 200

q_{1} = 200 - 0.5 q_{2}

Plugging in the value of q_{2} to get the value of q_{1}

q_{1} = 200 - 0.5 (200)

q_{1} = 200 - 100

q_{1} = 100

Q = q_{1} + q_{2}

Q = 100 + 200

Q = 300

Hence, in equilibrium, total output by the two firms will be option

e= 300.

5 0
3 years ago
During the current year, Harry, a self-employed accountant, travels from Kansas City to Miami for a seven-day business trip. Whi
irakobra [83]

Answer:

$1,200

Explanation:

during 2019, Harry can deduct:

  • 50% of the costs of meals while on he is on business trips
  • 100% of airfare and other travelling costs
  • 100% of lodging costs while doing business

Harry's deductions = (50% x $200) + (100% x $600) + (100% x $500) = $100 + $600 + $500 = $1,200

Any expenses incurred during vacation are not deductible.

4 0
3 years ago
Mills Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. Company management
Evgen [1.6K]

Answer:

investment on bonds   200 millions

premium on bonds         40 millions

                        cash                            240 millions

to record the purchase of bonds

cash                             7 millions

      interest revenue             6 millions

      premium on bonds         1 million

interest proceeds of december 31th

Balance sheet:

bonds      200

premium    39

net            239

cash                                             250 millions

              investment on bonds                         200 millions

              premium on bonds                               39 millions

              gain on sale of invesment                    11   millions

to record the sale of bonds

                       

Explanation:

<u>recording the bonds:</u>

acquisition             240

bonds face value (200)

premium                  40

It is a premium, as the bonds where purchased at higher price than face value

<u>Interest at December 31th</u>

To calculate the interest, we will calcualte the interest per payment:

7% annual coupon rate /2 payment per year = 3.5% semi-annual rate

5% market rate /2 payment per year = 2.5% semi-annual market rate

cash proceeds: 200 x 3.5% = 7

interest revenue:

carrying value x market rate

240 x 2.5% = 6

amortization 7 - 6 = 1

<u>Value in the balance sheet:</u>

the net value of the bond will be the face value plus the carrying value of the premium

<u>Sale of the bonds:</u>

selling price                           250

carrying value of the bonds (239)

gain on sale of bonds              1 1

It is a gain, as the bonds are being sold at a higher price than his carrying value.

7 0
3 years ago
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