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3 years ago

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based

Business

1 answer:

lakkis [162]3 years ago

7 0

Answer:

K425 = $20, 705

M67 = $1, 460

Explanation:

Overhead costs are costs on the income statement that exclude direct labor, direct materials and any other direct expenses. These costs are costs that are incurred indirectly, but are necessary for production. These include any advertising, insurance, rent, maintenance, repairs, telephone bills, supplies, utilities, taxes, etc.

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.

Activity Cost Pool K425 M67

Supporting direct labor ($) 10, 250 ($) 300

Machine processing 6, 600 60

Machine set-ups 350 50

Production orders 1, 120 160

Shipments 1, 610 115

Product sustaining 775 775

Total overhead cost 20, 705 1, 460

Below are the workings for each product, to determine how we arrive at each amount.

Activity cost pool Activity rate Activity ABC cost ($)

K425

Supporting direct labor $10 per direct labor hour 1, 025 10, 250

Machine processing $3 per machine hour 2, 200 6, 600

Machine set-ups $50 per set-up 7 350

Production orders $160 per order 7 1, 120

Shipments $115 per shipment 14 1, 610

Product sustaining $775 per product 1 775

Total Overhead cost 20, 705

Activity cost pool Activity rate Activity ABC cost ($)

M67

Supporting direct labor $10 per direct labor hour 30 300

Machine processing $3 per machine hour 20 60

Machine set-ups $50 per set-up 1 50

Production orders $160 per order 1 160

Shipments $115 per shipment 1 115

Product sustaining $775 per product 1 775

Total Overhead cost 1, 460

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2 years ago

Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,0

yuradex [85]

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3 years ago

The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:

Alinara [238K]

Answer:

Net income = $725,625

Earnings per share = $7.26 per share

Explanation:

The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.

The multiple-step income statement can be prepared as follows:

Rollins Inc.

multiple-step income statement

For the Year Ended December 31, 2021

Details $ $

Sales Revenue 5,400,000

Cost of goods sold (3,950,000)

Gross profit 1,450,000

Operating expenses:

Selling expense (350,000)

General and admin expense (250,000)

Total operating expenses (600,000)

Operating income 850,000

Interest revenue (expense):

Interest revenue 37,500

Interest expense (20,000)

Total Interest revenue (expense) 17,500

Other compreh. income (loss):

Loss on sale of investments (10,000)

Loss on debt investments (125,000)

Gain on projected ben. obligation 235,000

Total other compreh. income (loss) 100,000

Income before tax 967,500

Income taxes (w.1) (241,875)

Net income  725,625 

Earnings per share (w.2) 7.26

Workings:

w.1: Income taxes = Income before tax * Effective tax rate = $967,500 * 25% = $241,875

w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26

7 0

3 years ago

4.An important feature of a is that the holder has the right, but not the obligation, to buy or sell currency.(a)swap(b)foreign

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Answer:

(c) Foreign exchange option

Explanation:

Derivatives refer to those securities whose value is derived from the underlying asset. Examples being currency derivatives, commodity derivatives, etc.

Foreign exchange option refers to a derivative instrument whereby the holder has the right but not the obligation to buy or sell a currency at a future date at a predetermined rate fixed today.

In a call option, the holder has the right but not the obligation to buy a currency while in a put option the holder has the right but not the obligation to sell a currency.

The predetermined price at which the holder can buy or sell a currency is referred to as the strike price or exercise price.

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3 years ago

The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software program on its Web site to allow customers such

elixir [45]

Answer:

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Explanation:

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