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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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Answer:

short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash

Explanation:

A liquidity ratio can be regarded as type of financial ratio which is been utilized in determination of a ability of a company to pay out its short-term debt obligations. The metric is way to determine if there is a possibility for company to use its current as well as liquid and assets to cover up for its current liabilities.

It should be noted that A liquidity ratio measures short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash.

6 0
3 years ago
An analysis of the competition suggests the average retail selling price of an electronic game is $89. The owner of a computer a
sukhopar [10]

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Yes, she should buy

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The cost price of the electronic games is $55 per unit.

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As a percentage, the margin will be

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4 0
3 years ago
Best Buy does not play loud music in its stores, based on feedback that women don’t like it. A woman who arrived at Best Buy aft
ivanzaharov [21]

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D) Problem removal

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Since it has been discovered that women don't like loud music, a woman who just left a loud music technology store for Best Buy stores that doesn't play loud music will have her 'problem removed'.

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Women Will have a good and problem removal experience in Best Buy Store.

Best Buy store has had an advantage against other stores because they don't play loud music and more women will patronise them, thereby, increasing their profits.

7 0
2 years ago
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Lancashire Railway Company (LRC) has two divisions, L and H. Division L is the company’s low-risk division and would have a weig
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Answer:

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Explanation:

a) Data:

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Company composite weighted average cost of capital = 11% (8% * 50%) + (14% * 50%)

Expected return from a proposed project for Division H = 12%

4 0
2 years ago
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Answer:

bureaucracy

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According to my research on business strategies, I can say that based on the information provided within the question UPS is successful because of bureaucracy. This is a system of administration that has a clear hierarchy of authority, rigid labor, and inflexible rules and regulations, which allowed UPS to cement itself as one of the most successful delivery companies in the World.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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