Answer:
a. $17.44 per hour
b. $43,600 ; $104,640
Explanation:
The computation is shown below:
a. Single plantwide overhead rate equals to
= Total Overhead Amount ÷ Budgeted Direct Labor Hours
where,
Total overhead amount is
= $625,000 + $900,000 + $105,000 + $175,000 + $300,000 + $75,000
= $2,180,000
And, the budgeted direct labor hours is 125,000
So, the overhead rate is
= $2,180,000 ÷ 125,000
= $17.44 per hour
2. Now the overhead cost is
For Deluxe model
= 2,500 direct labor hours × $17.44 per hour
= $43,600
For basic model
= 6,000 direct labor hours × $17.44 per hour
= $104,640
Answer:
focus strategy
Explanation:
Focus strategy is a business strategy where a business concern stratify or segment a large market so as to concentrate on that small part, Market segmentation allows the business focus its marketing effort on the choosing segment for best customer experience. Focus strategy can help the business be a market leader in the choosing segment.
Answer:
$180,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The residual income serve a company to track its performance. It is a financial metric to assess company's internal performance. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $420,000 - (15% * $1,600,000 )
RI = $180,000
Answer:
AAA = (8000)
STOCK BALANCE = 0
AEP = 2000
Explanation:
-----------------AAA-------- stock basis---------AEP
Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000
Distribution (2000) - - - - (2000) - - - - - (4000)
Balance - - - 0 - - - - - - - 8000 - - - - - - 2000
LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0
Balance - -2000 - - - - - 10,000 - - - - - - 2,000
Loss - - - (10000) - - - - (10000) - - - - - - - 0
Ending - - (8000) - - - - - 0 - - - - - - - - - 2000
ENDING BALANCE :
AAA = (8000)
STOCK BASIS = 0
AEP = 2000
Beg. bal = beginning balance
LTCG = Long term capital gain
Answer:
$9,360
Explanation:
Cost Retail Ratio
Inventory, May 1 $10,440 $14,500 .72
Purchases 31,550 42,900
Freight-in 2,000
Purchase discounts (250)
Net markups 3,400
Net markdowns (1,300)
Totals excluding
beginning inventory 33,300 45,000 .74
Goods available $43,740 59,500
Sales (46,500)
Inventory, May 31 $13,000
Estimated inventory,
May 31 ($13,000 × .72) $ 9,360
