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arsen [322]
3 years ago
9

The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pool

s: fabrication, $246,000; assembly, $144,000, and setup, $110,000. Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantities for each project by activity is as follows: Fabrication Assembly Setup Basic 2,000 dlh 8,000 dlh 5 setups Deluxe 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak?
Business
1 answer:
tatuchka [14]3 years ago
3 0

Answer:

The ABC overhead for a Deluxe kayak will be $170.93

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

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]

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]

Finally we divide the overhead for Deluxe between the units produced

427,333.33/ 2,500 = 170.933 = 170.93

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If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as
ivanzaharov [21]

Answer: Restructuring cost

Explanation:

Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.

8 0
3 years ago
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True or false?.
MrMuchimi

True. One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

<h3>What is a predetermined overhead rate?</h3>

This is the term that is used to refer to the allocation rate that is used in the determination of the estimated cost of the manufacturing overhead. It is used to show in either the order of the product or that of the job.

Hence based on this question we can say that it is true because the reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

Read more on overhead rate here: brainly.com/question/13312583

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3 0
1 year ago
Suppose you use your entrepreneurial spirit and economics training to start your own business. In your first year of work, you a
3241004551 [841]

The  total amount of social insurance taxes you owe the federal government is $3,596.

The social insurance taxes will be tax rate (6.2%) of gross income amount of  $58,000 which is calculated using this formula

Social insurance taxes=Social security tax rate× Gross income

Where:

Social security  tax rate=6.2%

Gross income=$58,000

Let plug in the formula

Social insurance tax=6.2%×$58,000

Social insurance tax=$3,596

Inconclusion the  total amount of social insurance taxes you owe the federal government is $3,596.

Learn more here:brainly.com/question/10714904

3 0
2 years ago
Suppose bundle A contains 5 CDs and 5 DVDs and bundle B contains 2 CDs and 6 DVDs. If a consumer is able to rank different combi
Liono4ka [1.6K]

Answer:

E) a, b, and c are possible.

Explanation:

Consumer has different interests, thus they may prefer either Bundle A  with same volume of CD or DVDs or bundle B with more DVDs or even neither of any.

8 0
2 years ago
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% annual coupon rate, and a par value of $1,000. The discount rate is
azamat

Answer:

$977.93

Explanation:

This is a coupon paying bond. Using a financial calculator, input the following;

Time to maturity; N = 15

Coupon payment; PMT = 7.25% *1000 = 72.5

Face Value; FV = 1,000

Annual interest rate; I/Y = 7.5%

then compute the price of the bond, a.k.a present value; CPT PV = 977.93

Therefore, the price of the bond today is $977.93

7 0
3 years ago
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