1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Korvikt [17]
3 years ago
8

Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based costing

system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 5.55 per direct labor-hour Batch processing Number of batches $ 107.00 per batch Order processing Number of orders $ 275.00 per order Customer service Number of customers $ 2,463.00 per customer The company just completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 per unit. This was Interstate Trucking’s only order during the year. Required: Prepare a report showing the customer margin on sales to Interstate Trucking for the year.
Business
1 answer:
ella [17]3 years ago
7 0

Answer:

Report Showing Customer Margin

Interstate Trucking

Sales value for 1,000 custom seat cushion = $20 X 1,000                 $20,000

Less: Direct material = $8.5 X 1,000 units                                            ($8,500)

Less: Direct labor = $6 X 1,000 units                                                     ($6,000)

Less: Batch processing $107 X 2 batches                                               ($214)

Less: Direct labor hours = 1 hour/0.25 = 4 units in an hour

          Total = ($1,000/4) X $5.55 per labor hour                                   ($1,387.5)

Less: Order processing, cost per order                                                    ($275)

Less: Customer service, per customer                                                     ($2,463)

Profit on this customer                                                                              $1,160.5

Customer margin = ( $1,160.5/$20,000 )* 100 = 5.80%

   

You might be interested in
Describe the functions of SARB​
zavuch27 [327]

Answer:

The Reserve Bank's responsibilities include formulating and implementing monetary policy, promoting financial stability, issuing banknotes, providing banking services to government, operating the high-value payments system, managing Australia's foreign reserves and setting payments system policy.

8 0
2 years ago
Read 2 more answers
Explain why the operating income is less than it was when the company was producing its optimal product mix. Operating income is
Jet001 [13]

Answer:

There it is below

Explanation:

Given this product mix. what will the company's operating income be? ... the production of regular bins because the contribution margin per machine hour is higher. ... is less than it was when StoreAll was producing its optimal product mix. ... its optimal product mix because: the company had to produce less regular size bins ...

5 0
3 years ago
On January 1, 2017, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a
aalyn [17]

Answer:

The amount allocated to goodwill at January 1, 2017, is: $16,000

Explanation:

We talk of goodwill when a company acquires another one and is the difference between the cost to purchase the business minus the fair market value of the tangible assets netted the liabilities.

In this case the fair value of the assets is:

Assets $550,000 + $40,000 - $10,000= $580,000

The book value of the assets is corrected with the fair value, in this case we correct the value of the patent.

Liabilities $300,000

porcentage acquired 30%

price paid $100,000

$100,000 - ((580,000-300,000)*30%) = $16,000

5 0
3 years ago
I dont have to pay for this right?
olga nikolaevna [1]

Answer:

no

Explanation:

7 0
2 years ago
Read 2 more answers
A person is mad at their roommate so out of spite they decide to intercept a credit card offer in the mail, and fill it out in t
Rudik [331]

Answer:

The correct answer is letter "B": identity theft .

Explanation:

Identity theft refers to the act of using other people's information to obtain usually a financial advantage. Full names, social security numbers, phone numbers or any other individual information is stolen from others to be used in favor of the criminal.

8 0
2 years ago
Other questions:
  • In one or two sentences, describe how the first-come, first-served distribution method works.
    10·2 answers
  • Kristen saved for over a year so that she could afford a trip to the super bowl if her favorite team won the title. she was exci
    10·1 answer
  • Listed below are various transactions that a company incurred during the current year. select the impact on total stockholders'
    5·1 answer
  • A teenager purchases a camera for $62 by endorsing his paycheck of $90. not having $28 change in his register the camera store o
    6·1 answer
  • Which of the following is a primary market transaction? a. You sell 200 shares of IBM stock on the NYSE through your broker.b. Y
    6·1 answer
  • A study of about 1,800 U.S. colleges and universities resulted in the demand equation q = 9,900 − 2p, where q is the enrollment
    9·1 answer
  • The tragedy of the commons results when​ ___________. A. too many public goods are provided.B. common pool resources are overuse
    5·1 answer
  • Packrall Company makes computer chips. Curtis is manager of the company's maintenance department. Because his maintenance techni
    10·1 answer
  • Which particular demographic do you think has the most effect on consumer purchasing decisions? Explain.
    12·1 answer
  • When a large supply of a product is available for sale, the price of the product will often
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!