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natka813 [3]
3 years ago
13

Perez Corporation’s computer services department assists two operating departments in using the company’s information system eff

ectively. The annual cost of computer services is $583,000. The production department employs 40 employees, and the sales department employs 13 employees. Perez uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments.
Business
1 answer:
ollegr [7]3 years ago
3 0

Answer:

Production department $440,000

Sales department $143,000

Explanation:

The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.

Hence,

Cost allocated to the production department

= 40/(40 + 13) × $583,000

= 40/53 × $583,000

= $440,000

Cost allocated to the sales department

= 13/(40 + 13) × $583,000

= 13/53 × $583,000

= $143,000

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It's a method where <span>subordinates share a significant degree of decision-making power with their immediate superiors
One positive benefit of the employee involvement and participation is that companies will prepare more employees to understand the company's operational method and make more potential leaders for the company if it choose to expand in the future</span>
6 0
3 years ago
moriband corp. paid a dividend of $2.15 yesterday. the company’s dividend is expected to grow at a steady rate of 5 percent for
BaLLatris [955]

The present market price of Moribund stock stands at $22.58.

<h3>What is market price?</h3>
  • Market value is another term for current price. It is the most recent price at which a share of stock or other security was traded. The current price serves as a baseline in an open market.
  • The market price is the current cost of purchasing or selling an asset or service. The details of supply and demand decide the market price of an investment or assistance.
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  • The market price is the price that exists on a specific day or at a specific time. It is the result of market supply and demand. Normal prices, on the other hand, are the result of long-term demand and supply.

To learn more about market price, refer to:

brainly.com/question/14612966

#SPJ4

7 0
1 year ago
Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with m
Elenna [48]

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

                                                  = -14,486.15 + 299.78x124.1886

                                                  = -14,486.15 + 37,229.25

                                                  = 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

                                                  = -14,486.15 + 299.78x31.68

                                                  = -14,486.15 + 9,446.46

                                                  = -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

3 0
3 years ago
Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its
klemol [59]

Answer:

The acquisition cost is $38140

Explanation:

acquisiton cost = invoice price + applicable sales tax - cash discount + freight paid + cost of insurance + installation cost +testing and adjusting costt                

= $34000 + $2000 - $400 + $260 + $125 + $2000 + $425

= $38410

Therefore, The acquisition cost is $38140.

6 0
3 years ago
The following data have been provided by Letze Corporation from its activity-based costing accounting system: Factory supervisio
Alex Ar [27]

Answer:

Letze Corporation

Overhead allocation to Batch Set-Up:

Factory supervision = 55% of $460,000 = $253,000

Indirect factory labor = 60% of $220,000     132,000

Total overhead assigned                             $385,000

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a) Data and Calculations:

Factory supervision $ 460,000

Indirect factory labor $ 220,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

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Factory supervision      55%                    35%                10%      100%

Indirect factory labor    60%                   20%                20%      100%

b) Letze Corporation can use Activity-Based Costing as a system of cost accumulation and allocation based on activity cost pools so that overhead costs are assigned based on the level of activity which each cost pool generates.  It tries to tie costs to the activities that generate them.

3 0
3 years ago
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