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Ghella [55]
3 years ago
12

Immen Corporation manufactures two products: Product B82O and Product P99Y. The company uses a plantwide overhead rate based on

direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B82O and P99Y.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $ 330,000 15,000 MHs
Machine setups Number of setups $ 300,000 500 setups
Product design Number of products $ 46,000 2 products
Order size Direct labor-hours $ 330,000 10,000 DLHs
Activity Measure Product B82O Product P99Y
Machine-hours 7,000 8,000
Number of setups 200 300
Number of products 1 1
Direct labor-hour 3,000 7,000
Required:
1. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P99Y?
Business
1 answer:
Arisa [49]3 years ago
6 0

Answer:

Allocated overhead = $704,200

Explanation:

Allocated overhead = overhead absorpton rate × labour hours

Overhead absorption rate = estimated overhead /estimated labour hours

= $( 330,000 + 300,000 + 46,000 + 330,000)/(3000+7000) labour hours

=$100.6  per hour

Overhead to be allocated to Product P99Y= $100.6 × 7000

= $704,200

Allocated overhead = $704,200

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The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to
Margaret [11]

Answer:

1,081,000

Explanation:

Here we will use the formula

Material Purchase = Beginning raw material - (Ending raw material + raw material used)

by applying this formula we can calculate Material purchased.

= 547,000 - (610,000+1,018,000)

= 1,081,000

5 0
4 years ago
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three ac
pychu [463]

Answer:

Overall margin is $84.15

Explanation:

Given that:

For Haupt wedding, Cost of purchased decorations for cake = $73.45

Charges for the Haupt wedding cake = $718.21

The activity rate for the Size-Related activity cost pool = $1.15 per guest.

The activity rate for the Complexity-Related cost pool = $36.42 per tier

The activity rate for the Order-Related activity cost pool = $86.41 per order

Number of order = 1

Number of guest for Haupt wedding = 254 guest

Number of tiers used for Haupt cake = 5 tiers

Therefore:

Size related cost =  $1.15 per guest × 254 guest = $292.1

Complexity-Related cost = $36.42 per tier ×  5 tiers = $182.1

Order-Related cost = $86.41 per order × 1 order = $86.41

Total cost = Size related cost + Complexity-Related cost + Order-Related cost + Cost of purchased decorations for cake = $292.1 + $182.1 + $86.41 +  $73.45 = $634.06

Overall margin = Charges for the Haupt wedding cake - Total cost = $718.21 - $634.06 = $84.15

Overall margin is $84.15

7 0
4 years ago
When a product experiences an increase in the number of competitors, it is usually in the _____ stage of the product life cycle;
azamat

Answer:

Growth stage, Maturity stage

Explanation:

Product life cycle can be defined as the various stages that a product undergoes from the period that it is brought into the market to the period in which it is withdrawn from the market.

The four stages involved in the product life cycle include:

- Introduction stage

- Growth stage

- Maturity stage

- Decline stage

Growth stage is the stage in which the product experience a high rate of sales and profit. In this stage the public is fully aware of the product potential. There is also a high level of competition in this stage.

Maturity stage Is the stage in which the sales of the product begins to reduce. In this stage, saturation of the product in the market is attained. A lot of companies begin to think of new ways to rebrand their products to meet up with the new market trends.

4 0
4 years ago
2017 2016 Net sales $ 1,110,000 $ 1,116,500 Net income (loss) 62,000 50,700 Total assets 855,338 838,078 Share information Share
mixer [17]

Answer:

Earnings per share 2016 = $0.00073

Earnings per share 2017 = $0.00095

Explanation:

Earnings per share relates to a period and not for a particular date, therefore, it is computed based on the average number of shares for the period.

Net income for each year

2017 = $62,000

2016 = $50,700

Shares at the end of year

2017 = 64,507,000

2016 = 66,282,000

2015 = 73,139,000

Average shares of 2016 = \frac{(73,139,000 + 66,282,000)}{2} = 69,710,500

Average shares of 2017 = \frac{(64,507,000 + 66,282,000)}{2} = 65,394,500

Earning per share for 2016 = \frac{50,700}{69,710,500} = $0.00073

Earnings per share for 2017 = \frac{62,000}{65,394,500} = $0.00095

7 0
4 years ago
If a country has a trade surplus, then the country Group of answer choices imports as much as it exports imports more than it ex
tekilochka [14]

Answer:

exports more than it imports

Explanation:

Trade surplus is when export exceeds import.

Export is the sum total of goods and services sold to other countries. For example, if clothes are sold to China, it constitutes export.

Import is the sum total of goods and services bought from other countries. If a laptop manufactured in China is sold to someone in the US, this is import

Trade deficit is when a country imports more than it exports

4 0
3 years ago
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