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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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Sphinxa [80]

Answer:

D) Abundon

Explanation:

Based on the scenario being described within the question it can be said that the marketing intermediary in this chain is Abundon. This is because Abundon is acting the company that is connecting the manufacturer's (SoftStar and BlueHill) product to the customer, therefore acting as the go-between both of them. This is known as the middle-man or intermediary.

4 0
3 years ago
An investment will pay you $95,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the pres
olga2289 [7]

The present value of the investment future value is $38,628.40

What is present value?

Present value is the today's worth of a future amount when discounted or expressed in today's dollar equivalence.

The present value of a single future cash flow can be determined using the present value formula below:

PV=FV/(1+r/365)^(N*365)

PV=present value=unknown

FV=future value=$95,000

r=discount rate=9%

N=number of years before the future amount is received=10

365 is an indication of number of years in a year since discounted is compounded daily.

PV=$95,000/(1+9%/365)^(10*365)

PV=$38,628.40

The present value can be further understood using the link below:

brainly.com/question/18490474

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5 0
2 years ago
If the price level is 100 for 1996 and the price level is 103.3 in 1998, a nominal GDP in 1998 of $8,800 billion would mean that
ella [17]

Answer: b. $8,518.9 billion.

Explanation:

Nominal GDP is calculated with current prices which means that the effects of inflation are present.

Real GDP removes this effect by basing the GDP calculation on the prices of a previous period:

Real GDP = Nominal GDP * 100/ Price level

= 8,800 * 100/ 103.3

= $8,518.877

= $8,518.9 billion

4 0
3 years ago
Oscar has negotiated a lease for his sporting goods store in which he is required to pay $2,500 per month in rent. Oscar pays hi
AfilCa [17]

Answer:

The Oscar's fixed costs per month is $2,500

Explanation:

Fixed cost: The fixed cost is that cost in which the amount is remain fixed whether production level change or not, that means it does not have any effect on the production level.

In the given question,

Monthly rent is $2,500 which is fixed so, it would be considered as fixed cost

The per hour pay and electrical bill depend upon the total hours of operation which means if the more hours, the workers are engaged so more pay will be give to them, and more electricity bill come.

And if they are working few hours, than less rate and less electrical bill will be there which reflects the variable cost. So, these cost are considered variable cost. Thu, it would not be included in the fixed cost.

Hence, Oscar's fixed costs per month is $2,500

6 0
3 years ago
What is a credit limit?
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7 0
3 years ago
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