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leonid [27]
3 years ago
8

Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospita

ls. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total ActivityCustomer deliveries Number of deliveries $ 361,900 4,700Manual order processing Number of manual orders 266,400 3700 Electronic order processing Number of electronic orders 191,540 12200 Line item picking Number of line items picked 518,000 370000 Total selling and administrative expenses $ 1,337,840 Med Max gathered the data below for two of the many hospitals that it servesâCity General and County General: Activity Activity Measure City General County GeneralNumber of deliveries 15 30Number of manual orders 0 60 Number of electronic orders 20 0 Number of line items picked 130 290 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County General.
Business
1 answer:
kenny6666 [7]3 years ago
5 0

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate for each activity:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Customer deliveries= 361,900/4,700= $77 per delivery

Manual order processing= 266,400/3,700= $72 per manual order

Electronic order processing= 191,540/12,200= $15.7 per electronic order

Line item picking= 518,000/370,000= $1.4 per line item picked

<u>Now, we can allocate costs to each hospital:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

City general:

Customer deliveries= 77*15= 1,155

Electronic order processing= 15.7*20= 314

Line item picking= 1.4*130= 182

Total costs= $1,651

County General:

Customer deliveries= 77*30= 2,310

Manual order processing= 72*60= 4,320

Line item picking= 1.4*290= 406

Total costs= $7,036

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77julia77 [94]

Answer:

no option is correct, check the question to see if it was copied correctly and check the work to verify my answer

$1,430

Explanation:

worst case scenario:

2,500 units sold at $16 = $40,000

variable cost per unit $14 x 2,500 units = $35,000

contribution margin = $5,000

fixed costs = $8,500

depreciation expense = $11,000

cash flow = [(contribution margin - fixed costs - depreciation) x (1 - tax rate)] + depreciation

cash flow = [($5,000 - $8,500 - $11,000) x 0.66] + $11,000 = $1,430

8 0
2 years ago
A significant summer drought takes place in several states, including lowa, Nebraska, Illinois, Minnesota, Indiana, and others.
viva [34]
I wanna say the answer is D it sounds the safest
5 0
2 years ago
Read 2 more answers
On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0
zysi [14]

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.  

The book value of the loan is $194,000.

The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

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Income from the loan = Book value × Effective interest rate × No. of months of the year

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3 0
3 years ago
The expansionary phase of the business cycle is characterized by
Leokris [45]

Answer:

<u>increasing real output and reducing unemployment</u>

Explanation:

The expansionary phase of the cycle is business characterized by the i<em><u>ncreasing real output and reducing unemployment.</u></em>

<em> Business cycle refers to that cycle in which there is increase and decrease or fall and rise of output of goods and services.</em>

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4 0
2 years ago
Yehle Inc. regularly uses material Y51B and currently has in stock 457 liters of the material for which it paid $2,619 several w
Sedaia [141]

Answer:

Option A is the correct answer,$5810

Explanation:

The relevant of the Y51B is the cost of replacement,which is the open market price as it is actively being used by Yehle Inc.

Besides, if the quantity currently in inventory is used it has to be replaced at open market price.

Disposal value would have been used if the material in question is not being used

The relevant of 700 liters is given below:

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Above,it would be wrong to choose option D as 700 liters is not available

5 0
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