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Deffense [45]
3 years ago
5

Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the

three types of textbooks the company publishes.
Activity (Cost) Cost Driver Delux Moderate Economy
Machine maintenance ($330,000) machine hours 250 750 1,000
Setups ($630,000) setups 35 20 15
Packing ($166,000) cartons 10 30 60
Photo development ($574,000) pictures 4,400 2,400 1,400
Deluxe textbooks are made with the finest quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.

Required:

Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:

Deluxe Moderate Economy
50,000 150,000 200,000
Determine the overhead cost per book for each book type.
Business
1 answer:
Ber [7]3 years ago
4 0

Answer:

Deluxe= $4.25 per book

Moderate= $4.25 per book

Economy= $4.25 per book

Explanation:

Giving the following information:

Activity (Cost) Cost Driver Delux Moderate Economy

Machine maintenance ($330,000) machine hours 250 750 1,000

Setups ($630,000)

Packing ($166,000)

Photo development ($574,000)

First, we need to calculate the total overhead cost:

Total overhead= 330,000 + 630,000 + 166,000 + 574,000= 1,700,000

Now, we can calculate the estimated manufacturing overhead rate to allocate overhead to each book type.

The allocation base is machine-hours.

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

Estimated manufacturing overhead rate= 1,700,000/ 2,000= $850 per machine hour.

Now, we can allocate overhead to each book:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe= $850*250hours= $212,500

Moderate= $850*750hours= $637,500

Economy= $850*1,000= $850,000

Based on the number of units, we can calculate the unitary overhead:

Deluxe= $212,500/50,000= $4.25 per book

Moderate= $637,500/150,000= $4.25 per book

Economy= $850,000/200,000= $4.25 per book

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Which of the following is a source that businesses use to develop standards:
ira [324]

Answer:

Suppliers

Explanation:

Suppliers are the main factor to achieve quality standards and to develop standards which lead to competitive advantage in the market. Business use suppliers to develop standards by hiring the best suppliers who give quality input or raw material. It’s all about making sure that your supplier is meeting the required standards and making sure they company with all the relevant laws.

4 0
3 years ago
Sally works for Timber Products, Inc. The basis for her contribution under the Federal Insurance Contribution Act to help pay fo
Delicious77 [7]

Sally works for Timber Products, Inc. The basis for her contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is her ​annual wage base.

Answer: Option B

<u>Explanation:</u>

The contribution that Sally, who is working for Timber Products incorporation, has to make for federal insurance contribution act is based on the amount of wage that Sally gets on an annual basis or the wage that she gets in a year.

A part of that wage which is a particular percentage is paid to the federal insurance contribution act who is going to benefit her in case she incurs any kind of loss of income.

8 0
3 years ago
Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labo
anastassius [24]

Answer:

C. $9.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead equals to

= Total fixed manufacturing overhead cost + Direct labor hours × variable manufacturing overhead per direct labor-hour

= $497,000 + 70,000 × $2.40

= $497,000 + $168,000

= $665,000

And, the direct labor-hours is 70,000  

So the rate is equal to

= $665,000 ÷ 70,000

= $9.5 per direct labor-hour

4 0
3 years ago
HELP ASAP FOR BRAINLIEST ****
Mrac [35]
Okay well I got you.
The first answer is: When unemployment is low, businesses have to compete  more for workers, forcing wages up. Higher wages increases labor costs.
The second answer is: As inflation accelerates, workers may supply labor in the short term because of higher wages- leading to a decline in the unemployment rate.
The third answer is: I don't know this one sorry :(
The fourth answer is: I don't know this one either.
Sorry i wasn't much help...:(
7 0
3 years ago
"A firm finances itself with 30 percent debt, 60 percent common equity, and 10 percent preferred stock. The before-tax cost of d
Nutka1998 [239]

Answer:

WACC = Ke(E/V) + Kd(D/V)(1-T)  + Kp(P/V)

WACC = 15(60/100) + 5(30/100)(1-0.3) + 10(10/100)

WACC = 9 + 1.05 + 1

WACC = 11.05%

Explanation:

Weighted average cost of capital is a function of cost of common stock and the proportion of common stock in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure plus cost of preferred stock and the proportion of preferred stock in the capital structure.  Ke = Cost of equity or common stock, kd = cost of debt and kp = cost of preferred stock.

7 0
3 years ago
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