Refer to the given data. a $2 billion increase in consumption at each level of di could be caused by:

Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to all

hammer [34]

Answer:

a. predetermined overhead rate for each activity

initial concept formation = $3,310 per Project Change

design = $3 per Square feet

construction oversight = $1,130 per Month

b. Classification

unit-level activities :

design

batch level activities :

initial concept formation

Product level activities :

design

Facility level activities :

initial concept formation

construction oversight

Explanation:

This question requires application of Activity Based Costing (ABC) method of allocating overheads.

For each overhead a rate is determined as follows :

initial concept formation

Predetermined overhead rate = Overhead Cost / Number of Project Changes

= $52,960/ 16

= $3,310 per Project Change

design

Predetermined overhead rate = Overhead Cost / Square feet

= $420,000/ 140,000

= $3 per Square feet

construction oversight

Predetermined overhead rate = Overhead Cost / Number of Months

= $118,650/ 105

= $1,130 per Month

Classification

The way the activity is to be absorbed in costing determine its classification

5 0

3 years ago

diamong [38]

Answer: please refer to the explanation section for journals and notes

Explanation:

1 April

DR Inventory 23000

CR Trade Payable 23000

inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised

6 April

DR Freight costs 900

CR Bank 900

DR Inventory 900

CR Freight costs 900

Kerber Co Paid Freight costs of $900. There are two events happening in this transaction being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).

7 April

DR Equipment 26000

CR Creditor/Liability 26000

Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset and liability is credited.

8 April

DR Trade Payable 3000

CR inventory 3000

Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company) . Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable

15 April

DR Trade Payable 20000

CR Bank 20000

23000 - 3000 = 20 000

recording payment made to the Creditor for inventory purchased or settlement of the trade payable account

5 0

3 years ago

The Payroll records of Oregon Mist contained the following information for the month of November: Salaries $ 350,000 FICA Taxes

uysha [10]

Answer: D. debit to Payroll Tax Expense of $26,950.

Explanation:

We should note that the payroll tax expense will consist of the federal unemployment tax, the state unemployment tax and the FICA taxes. This will then be:

= 3500 + 1750 + 21700

= 26950

Therefore, the journal entry to record the monthly Payroll Tax Expense would include debit to Payroll Tax Expense of $26,950.

8 0

3 years ago

Cartels control the production and pricing of goods mainly through

Lubov Fominskaja [6]

Answer:

the elimination of competition

Explanation:

8 0

3 years ago

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed costs of $527,000. Total f

Anestetic [448]

Answer: $0.54

Explanation:

Total cost = Fixed cost + Variable cost

$622,500 = $527,000 + Variable cost

Variable cost = $622,500 - $527,000

Variable cost = $95,500

Variable cost per unit will be calculated as the variable cost divided by the production unit. This will be:

= $95,500/176,000

= $0.54

The variable cost per units is $0.54.

8 0

3 years ago