Answer:
Order processing= $846.67 per order
Explanation:
Giving the following information:
Activity costs:
Wages and salaries= 420,000
Depreciation= $170,000
Occupancy= $190,000
Activity Cost Pools:
Order Processing:
Wages and salaries= 0.3
Depreciation= 0.25
Occupancy= 0.45
Order processing 300 orders
First, we need to calculate the total overhead cost for order processing:
Wages and salaries= 0.3*420,000= 126,000
Depreciation= 0.25*170,000= 42,500
Occupancy= 0.45*190,000= 85,500
Total= $254,000
Now, using the following formula, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 254,000/300= $846.67 per order
Answer:
Cash cows
Explanation:
Cash cows are one of the four classifications of the Boston Consulting Group Matrix, the other three being dogs, stars, and questions marks.
Cash cows are products or services that hold a large market share, in a slow-growing industry. They are called cash cows because from the sales they generate, other products or services in fast-growth industries can be financed (for example, question marks or starts).
In other words, cash cows are "milked" to generate operating cash flow that can be either re-invested or distributed as profit.
Answer:
0.95= standard price
Explanation:
Giving the following information:
In 2017, the company produced 28,000 units. During the year, 117,000 pounds of raw materials were purchased at $0.92 per pound.
Direct material price variance= (standard price - actual price)* actual quantity
3510= (sp - 0.92)*117000
0.03=sp-0.92
0.95= standard price
Answer:
$90,000; $18,000; $37,500; $34,500
Explanation:
Total contribution to GDP:
= Number of bicycles produces × Selling price of each
= 300 × $300
= $90,000
Value added by Firm T is calculated as follows:
= value of tires sold to Firm B
= Selling price of each tire × No. of tires produced
= $30 × 600
= $18,000
Value added by Firm F is calculated as follows:
= Value of bicycle frames sold to Firm B
= Selling price of each bicycle frame × No. of bicycle frames produced
= $125 × 300
= $37,500
Value added by Firm B:
= Value of bicycles sold to consumers - Cost of purchasing tires from Firm T - Cost of purchasing bicycle frames
= ($300 × 300) - $18,000 - $37,500
= $90,000 - $18,000 - $37,500
= $34,500
