Answer:
<em>.C. cash cow businesses with an excellent financial fit</em>
Explanation:
With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are:A. struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.B. companies offering the biggest potential to reduce labor costs.C. cash cow businesses with an excellent financial fit.D. companies that are market leaders in their respective industries.E. companies that are employing the same basic type of competitive strategy as the parent corporation’s existing businesses.
Big businesses are usually the one that acquire distressed companies /. They are called the cash cow because they are basically business, investment, or product that provides a steady income or profit. they possess a large volume of the market share with little investment contribution to it.
Answer:
A.Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
B.Small glove 8.52
Medium glove 10.65
Large glove 12.78
Explanation:
a) Calculation to Determine the two production department factory overhead rates.
Pattern Department = 165,200/2,900
= 56.9 Approximately 57 per DLH
Cut and Sew Department = 273,000/3,500
= 78 per DLH
Therefore two production department factory overhead rates will be :
Pattern Department 57 per DLH
Cut and Sew Department 78 per DLH
b) Calculation of the factory overhead cost per unit
Small glove (57*.04+78*.08)=8.52
Medium glove (57*.05+78*.10)=10.65
Large glove (57*.06+78*.12)=12.78
Therefore the factory overhead per unit for each product will be: Small glove 8.52
Medium glove 10.65
Large glove 12.78
Answer:
b. $588
Explanation:
Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:
Debit Receivable Account $1,000
Credit Revenue $1,000
On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:
Debit Revenue $400
Credit Receivable Account $400
The balance Receivable Account of Stuart Co. = $1000-$400 = $600
On July 24, Stuart Co. makes the payment, the sales discount was:
$600 x 2% = $12
The amount of cash received = $600-$12=$588
The following entry is made:
Debit Cash: $588
Debit Sales discount: $12
Credit Receivable Account $600
Answer:
The ABC overhead for a Deluxe kayak will be $170.93
Explanation:
We are going to divide the overhead cost over the cost driver of each activity.
![\left[\begin{array}{cccc}-&Overhead&Total&Rate\\fabric&246,000&10,000&24.6\\assembly&144,000&32,000&4.5\\setup&110,000&15&7,333.33\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26Overhead%26Total%26Rate%5C%5Cfabric%26246%2C000%2610%2C000%2624.6%5C%5Cassembly%26144%2C000%2632%2C000%264.5%5C%5Csetup%26110%2C000%2615%267%2C333.33%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Now we apply the rate to Deluxe Kayak:
![\left[\begin{array}{cccc}-&Rate&Deluxe&Overhead\\fabric&24.6&10,000&246,000\\assembly&4.5&24,000&108,000\\setup&7,333.33&10&73,333.33\\Total&-&-&427,333.33\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26Rate%26Deluxe%26Overhead%5C%5Cfabric%2624.6%2610%2C000%26246%2C000%5C%5Cassembly%264.5%2624%2C000%26108%2C000%5C%5Csetup%267%2C333.33%2610%2673%2C333.33%5C%5CTotal%26-%26-%26427%2C333.33%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Finally we divide the overhead for Deluxe between the units produced
427,333.33/ 2,500 = 170.933 = 170.93
