All categories

4 years ago

ACTIVITY BASED COSTING SYSTEMS AND ACTIVITY BASED MANAGEMENT

Business

1 answer:

Oduvanchick [21]4 years ago

4 0

Answer:

The total costs of Model A, B and C are $57,567.57,$ 115,175.68 and $67,756.76 respectively.

However,cost per unit of Models are highlighted below:

Model A $50

Model B $75

Model C $20

Explanation:

In calculating the total costs of models using activity-based costing system and activity based management, I multiplied the quantities by labor cost per unit and material cost per unit in order to arrive at total material costs and total labor costs.

However, in calculating overheads I multiplied direct labor hour per unit by the total quantity of product produced,then summed to together all labor hours to arrive total labor hours for all models with which I then shared the labor support overhead between the models.I repeated the same exercise for material support overhead as well.

Lastly, I added together all square feet ,then apportioned the facility to models based on each model's square feet divided by total square feet.

Find attached for detailed calculation.

Download xlsx

You might be interested in

Joe Loser enters into an investment scheme with some local bigwigs. To get Joe's money, these people lie to Joe about several pr

coldgirl [10]

15 is the answer to this question

7 0

3 years ago

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i

Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

$PresentValue=\frac{Coupon}{r}$

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = $\frac{170}{0.09}$ = $1,888.89

4 0

3 years ago

A company purchases inventory on terms of net 30 days and resells to its customers on terms of net 15 days. The inventory conver

Tanzania [10]

Answer:

The company's cash conversion cycle is 75 days

Explanation:

The conversion cycle is the number of days that a business takes to convert its investment in inventory into cash flowing from the purchase and sales of the business.

Conversion cycle = Payable days + Inventory in Stock days + Receivable days

where

Payable days = Purchases term = 30 days

Inventory in stock = Number of days until inventory remains unsold = 60 - 30 days = 30 days ( As payable days are already included in inventory conversion days )

Receivable days = Sales term = 15 days

Placing values in the formula

Conversion cycle = 30 days + 30 days + 15 days

Conversion Cycle = 75 days

6 0

3 years ago

Prahm Corp. wants to raise $4.4 million via a rights offering. The company currently has 500,000 shares of common stock outstand

Pavel [41]

Answer:

price for selling 3000 share right is $25060.87

Explanation:

Given data:

Total Amount raised= $4,400,000

Spreading rate = 6%

Subscription price = $20 per share

Number of share owned by company = 500,000

Per share cost = $45

Totals share own in the company = 3000

subscription price after deducting spreading rate $= 20\times (1 -0.06) = $18.80$

Now, Right share $= \frac{4400000}{18.8} = 234,043$

Right price is calculated as

Right price = ((Number of share held * market price) + (Right share *Right price))/( Number of share held + Right share)

plugging all value in above relation

$= \frac{500000 \times 45 + 234043\times 18.8}{500000 + 234043}$

Right share = $36.65

single right value = 45- 36.65 = $8.35

Price for 3000 share right = 8.35 *3000 = $25060.86

6 0

4 years ago

Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $46,000 $39,50

Archy [21]

Answer:

Cost of goods manufactured= $228,700

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 25,500 + (46,000 + 75,500 - 39,500) + 100,500 + (68,500 - 11,800) - 36,000

cost of goods manufactured= $228,700

We deduct the indirect material from overhead because it is already incorporated into direct materials.

6 0

3 years ago