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polet [3.4K]
3 years ago
11

PB5.

Business
1 answer:
Olin [163]3 years ago
6 0

Answer:  

Calculation of cost driver rates

Material receipts = $249,975/750  = $333.30 per requisition

Machine set-up = $150,000/200 set-ups = $750.00 per set-up

Assembly = $450,000/300 parts = $1,500 per part

Machine maintenance = $175,000/3,500 hours = $50 per machine hour

Calculation of overhead allocated to each unit of products

Material receipts

Simple = <u>$333.30 x 300</u>

              369,991 units  

           = $0.27 per unit

Removable = <u>$333.33 x 450</u>

                      146,100 units

                   = $1.03  per unit

Machine set-up  

Simple = <u>$750 x 150 set-ups</u>

               369,991 units

           = $0.30 per unit

Removable = <u>$750 x 50 set-ups</u>

                       146,100 units

                   = $0.26

Assembly

Simple = <u>$1,500 x 100 parts </u>

                369,991 units

           = $0.41 per unit

Removable = <u>$1,500 x 200 parts </u>

                      146,100 units

                   = $2.05 per unit  

Machine maintenance

Simple = <u>$50 x 2,000</u> machine hours

                369,991 units

           = $0.27 per unit

Removable = <u>$50 x 1,500</u> machine hours

                      146,100 units

                  = $0.51 per unit

Calculation of overhead allocated to each product

                                         Simple      Removable

                                          $                    $

Material receipts                0.27             1.03

Machine set-up                  0.30             0.26

Assembly                            0.41              2.05                                                                                                                                                                                                

Machine maintenance       <u>0.27 </u>           <u> 0.51</u>

Overhead allocated          <u> 1.25 </u>            <u>3.85</u>                                                                                                                                                                                                                      

Explanation:

The overhead allocation rate is calculated by dividing the overhead for each cost pool by the total cost driver for each cost pool.

The overhead allocated to each product is calculated by multiplying the cost driver rate by the cost driver for each product divided by the number of units of each product.

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Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $12,000
mina [271]

Answer:

$0

Explanation:

The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.

Let

u = number of units

s = selling price per unit

v = variable cost per unit

F = Fixed cost

I = Net income

I = su - F - vu

but vu = 0.3su

Hence

I = su - 0.3su - F = 0.7su - F

Given that the proposal will increase sales by $12,000,

New sales = su + 12000          ( in $)

and total fixed costs by $8,400

New fixed cost = F + 8400

New variable cost = 0.3( su + 12000) = 0.3su + 3600

New net income = su + 12000 - 0.3su - 3600 - F - 8400

= 0.7su - F

New net income is same as the old net income hence no increase.

4 0
3 years ago
A product manager is eager to develop a new product idea. To gain approval to do so, the product manager orders the research tea
vladimir1956 [14]

Answer:

The answer is b. Advocacy research

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8 0
3 years ago
Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon
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Answer: c. Sydney can diversify 50% of her WillCo stock.

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5 0
3 years ago
Data concerning Dorazio Corporation's single product appear below:
Reika [66]

Answer:

30600 less 25 000 = 5600

increase in net income

Explanation

                                               1400 units                                               1000 units

sales                                       224 000                                                  160 000  

(1400*160) (1000*160)                                                                          

variable costs                   (106 400)                                                    (48 000)

(1400*76) (1000*48)                                                      

contribution margin            117 600                                                     112 000                          

fixed costs                             (87 000)                                                  (87 000)                                              

net operating income            30 600                                                   25000                              

6 0
3 years ago
Customers are likely to be more price sensitive when
Murljashka [212]
They dont see the end benefit

Not 100% on this one
4 0
3 years ago
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