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lora16 [44]
2 years ago
5

Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A

is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $26,400 170 380 550 Activity 2 $54,365 950 360 1,310 Activity 3 $136,880 900 3,820 4,720 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) $14.64 $9.21 $6.71 $5.91
Business
1 answer:
saul85 [17]2 years ago
6 0

Answer:The activity-based costing cost per unit of Product A=$9.21

Explanation:

                             Product A       Product B

Units Produced    8000 units      6000 units

Activity Cost Pool Total Cost Product A Product B  Total Activity

Activity 1                  $26,400       170             380          550

Activity 2                  $54,365       950            360         1,310

Activity 3                   $136,880     900            3,820      4,720

 

              Activity−basedcost  for Poduct A

Activity−basedcost for Activity1= total Cost/total no. of activityx activity for particular product which is product A

=26,400/550 x 170= 8160

Activity−basedcost for Activity2= total Cost/total no. of activityx activity for particular product which is product A

=54,365/1310 x 950=39,425

Activity−basedcost for Activity3= total Cost/total no. of activityx activity for particular product which is product A

=136,880/4720 x 900=26100

Total activity based cost for Product A = $8,160 + $39,425 +$26,100=$73,685

The activity-based costing cost per unit of Product A = Total activity based cost for Product A/ Units Produced  for product A=$73,685/8000=$9.21

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Which of the following statements about annuities are true?
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Answer:

A)The first cash flow of an annuity due is made on the first day of the agreement.

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Explanation:

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6 0
2 years ago
You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You
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Answer:

$187,584.20

Explanation:

Firstly, we need to calculate the total future value (FV) of the bond account and stock account after 10 year from now (when you come to retirement age):

FV_bond at retirement = 169,000 x (1 + 7.25%)^10 + 7,100 x (1 + 7.25%)^9 + 7,100 x (1 + 7.25%)^8 + … 7,100 x (1 + 7.25%)^0 = 426,230.93

FV_stock at retirement = 609,000 x (1 + 10.75%)^10 = 1,690,653.63

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Because you plan to use up all the funds in your account after 21 equal amount withdrawals after retirement, total present value <em>(at the time you retire not now)</em> of these withdrawals <em>(discounted at 6.5%)</em> have to be equal to the value of your invesment 10 years from now, or:

2,116,884.57 = C/(1+6.5%) + C/(1+6.5%)^2 + … + C/(1+6.5%)^21, with C is the amount you plan to withdraw each year.

Solve the equation we get C = 187,584.20

<em>Note: The equation can be solved easily using Excel or BAII Plus.</em><em> </em>

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