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frosja888 [35]
3 years ago
8

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of u

nits produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $ 79,000 16 24 Material handling Number of parts 58,000 64 16 Packaging costs Number of units 300,500 105,000 70,000 $ 437,500 What is the total overhead allocated to Product XY using the current system?
Business
1 answer:
muminat3 years ago
3 0

Answer:

$239,300

Explanation:

As per the data given in the question,

Activity                 Cost driver     Amount   M        XY         Total

Production setup No. of setups $79,000 16        24         40

Material handling No. of parts   $58,000 64       16           80

Packaging cost No. of units       $300,500   $105,000   $70,000 $175,000

                                                  $437,500

Allocation of Product XY :

Production setup $79,000 ÷ 40 × 24                        $47,400

Material handling $58,000 ÷ 80 × 16                         $11,600

Packaging cost $300,500 ÷ $175,000 × $105,000 $180,300

Total overhead                                                          $239,300

We simply added the production setup, material handling and packaging cost

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China, India, Eastern Europe, and other developing countries have been sourcing hot spots. Explain why and also discuss any prob
Oksana_A [137]

Answer: The problem in outsourcing from low-cost country:

It is seeking goods and services beyond the border of a region. It is a process where organizations look for the most cost-effective place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the cost is using lower abroad.

Explanation:

Outsourcing from low-cost countries a move by the company to cut costs as they have a huge presence of labor. It will allow them to concentrate on their core activities. But, there are some problems outsourcing from low-cost countries. Some are :

1. Sometimes the outsourcing does not provide the expected cost savings.

There might be new conflict and problem arising from different sources

2. There might be legal barriers present between the two different nations involved in outsourcing.

7 0
3 years ago
Ridge Company issues $10,000,000 10-year, 9% bonds on 3/1/17 at 97 plus accrued interest. The bonds are dated January 1, 2010, a
lilavasa [31]

Answer:

$9,850,000

Explanation:

Calculation for What is the total cash received on 3/1/17

Total cash received on 3/1/17=$10,000,000 × .97) + ([9%*$10,000,000) × 2/12]

Total cash received on 3/1/17=$10,000,000 × .97) + ($900,000 × 2/12)

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8 0
3 years ago
Allison and josh are partners in a business. allisons capital is $60,000, and joshs capital is $100,000. profits for the year ar
solmaris [256]
Hi there

The share of profit and loss based on their proportion of their capital
Total capital is
100000+60000=160000

Allison's share of profit is
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joshs share of profit is
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Good luck!
4 0
3 years ago
The triple-bottom-line philosophy says that: companies should treat their local, national, and global customers fairly. business
alexandr1967 [171]

Answer: companies should try to support the economic, social, and environmental spheres of sustainability.

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The triple bottom line philosophy says that organizations should not only focus on the financial aspect(profit) alone but should also focus on the environment and the social aspect of the society.

Therefore, the triple-bottom-line philosophy says that companies should try to support the economic, social, and environmental spheres of sustainability.

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Answer:

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6 0
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