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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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Answer:

$40 million

Explanation:

The computation of stock price is shown below:-

For computing the stock price first we need to compute the firm value which is below:-

Firm value = Free cash flow-1 ÷ (Weighted average cost of capital - Growth rate)

= $70.0 million ÷ (10% - 5%)

= $70.0 million ÷ 5%

= $1,400 million

Stock price = (Firm value - Debt) ÷ Number of shares

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3 years ago

(Life-Cycle Hypothesis) According to the life-cycle hypothesis, what is the typical pattern of saving and spending for an indivi

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Answer & Explanation:

Modiglani's Life cycle Hypothesis depicts spending & consumption pattern of people, in order to stabilise / or smoothen their consumprtion. The theory has following phases :

Early (Non Working) Age, Low Income stage : Borrowings are done, to cover up for lack of income that yields desirable stable consumption level.
Youth, Earning (Working) Age : Savings are done, through surplus of income level over desirable stable consumption level.
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Implication rate for entire economy saving rate : It implies that economy's savings rate is high, if more population comprises of middle aged working population.

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3 years ago

Hackers who intend to profit from their actions are motivated by:

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Hackers who intend to profit from their actions are motivated by money. Those who hack electronics/items in the means to collect profit from doing so are motivated by money. Money is their driving force to hack the item they were told to.

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3 years ago

Force Corporation is owned equally by Luke and his sister Leia, each of whom own 200 shares in the company. Force redeemed 100 s

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Complete question:

Force Corporation is owned equally by Luke and his sister Leia, each of whom own 200 shares in the company. Force redeemed 100 shares of Luke’s stock in the company on December 31 of this year paying Luke $1,000 per share. Luke’s income tax basis in each share is $500. Force has total E&P of $800,000. What are the tax consequences to Luke as a result of the stock redemption?

a)$50,000 capital gain and a tax basis in each of his remaining shares of $500.

b)$50,000 capital gain and a tax basis in each of his remaining shares of $1,000.

c)$100,000 dividend and a tax basis in each of his remaining shares of $500.

d)$100,000 dividend and a tax basis in each of his remaining shares of $1,000.

Answer:

$50,000 capital gain and a tax basis in each of his remaining shares of $500.

Solution:

The sale should be viewed as an swap as Luke decreases the shareholding from 50 per cent (200/400) to 33 per cent (100/300).

Luke is not regarded as the shareholder of any property held by his dad.

Luke records a capital benefit of $50,000, measured as $100,000 – $50,000.

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An employee is compensated on a piece rate basis. This indicates that the amount picked, packed, pruned, or made determines the employee's compensation rate. Piece rates are used instead of the hourly or weekly pay rate when payment is made.

To learn more about piece rate, click here.

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