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Ira Lisetskai [31]
3 years ago
9

In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the ac

tivity cost pool by:
Business
1 answer:
chubhunter [2.5K]3 years ago
8 0

Answer:

the total activity for the activity cost pool.

Explanation:

In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

In activity-based costing, the activity rate for an activity cost pool is computed as;

Activity rate = total overhead cost/activity for the activity cost pool.

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The company cost of capital for a firm with a 60/30/10 debt/common/preferred split, 8% cost of debt, 15% cost of equity, preferr
sveticcg [70]

Answer:

b. 8.82%

Explanation:

WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

Cost of Preferred Stock calculation :

Cost of Preferred Stock = Expected dividend / Market Price x 100

                                        = $6 / $50 x 100

                                        = 12 %

After tax cost of debt calculation :

After tax cost of debt = Interest x (1 - tax rate)

                                    = 8 % x (1 - 0.35)

                                    = 5.20 %

therefore,

WACC = 15% x 30 % + 12 % x 10 %+ 5.20 % x 60 %

           = 8.82 %

6 0
2 years ago
The ____________________ is a detailed examination of the events that occurred in a test, exercise, or assessment function, from
RUDIKE [14]

Answer:

after action review

Explanation:

After action review -

It refers to the complete brief analysis of any event which is completed , is referred to as after action review .

Complete analysis about the act is done in this process in order to get maximum information possible .

The process consists of steps like test , exercises , experiments etc.

Hence , from the given information of the question ,

The correct answer is after action review .

7 0
3 years ago
Traditional and command economies are the only systems that offer __________. a. growth b. security c. freedom d. innovation ple
antoniya [11.8K]

Answer:

b

Explanation:

7 0
2 years ago
Read 2 more answers
Early in Ford Motor Company’s history, it offered just one car (Model T) to customers. The cars were made exactly the same way f
sergiy2304 [10]

Answer:

Production concept

Explanation:

Under the production concept of marking, it is stated that the consumer desires the products which are most common and are highly available in market which tends to reduce its price.

Therefore, under this the products are priced relatively less, and there is low cost and with huge capacity there is mass distribution.

In the given instance also, the company manufactures a single model of car, same for everyone at low prices.

Therefore, the final answer is:

Production concept

5 0
3 years ago
Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37 comma 000 sails per year and i
xz_007 [3.2K]

Answer:

Increase in operating income  = $456,000

Explanation:

According to the scenario, computation of the given data are as follow:-

                 Operating Income Statement

Particular                             Existing         New order       Total  

Current selling                     25,000             5,700             30,700

Selling price per unit                $185                    $160  

Manufacturing variable cost per unit $60            $60  

Selling and administrative variable cost per unit $20  $20  

Contribution margin per unit(CMPU)= $105     $80  

(sale price - variable cost)

Contribution margin                 $2,625,000   $456,000 $3,081,000

(sale units × CMPU)

Manufacturing fixed cost         $700,000   $700,000

Selling and administrative fixed cost $250,000  $250,000

Net operating income                $1,675,000  $2,131,000

So, Difference in net income are as follows:

Increase in operating income = $2,131,000 - $1,675,000

= $456,000

8 0
3 years ago
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