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3 years ago

To assign overhead costs to each product, the company:_____.

Business

1 answer:

mina [271]3 years ago

4 0

Answer:

a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

Explanation:

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.

Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

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

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Which type of store has high sales volume, shallow product lines, little service, and prices that are lower than supermarkets

AnnyKZ [126]

The type of store that has high sales volume, shallow product lines, little service, and prices that are lower than supermarkets is known as discount stores.

<h3>What is a Discount Store?</h3>

This refers to the type of store which makes a bulk purchase of items and then sells them off at a lower price than they are worth.

Hence, we can note that a discount store operates in a way that enables them to engage in efficient distribution and bulk purchasing to meet the needs of their customers.

Read more about discount stores here:
brainly.com/question/1838431

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2 years ago

Markus Company sells 1,000 bonds of its debt investment in Berta Inc. for $20,000. The original cost of the 1,000 bonds was $18,

gregori [183]

Answer:

Credit the following;

Investment (Available for sale) $18,000

Gain on sale of an investment $2,000

Explanation:

Assuming all the unrealized holding gains and losses have been reversed, the investment will be recorded at the original cost of $18,000 instead of the fair value and the gain would then be $2,000.

The Journal entry for the sale would be;

DR Cash.......................................... .............$20,000

CR Investment (Available for sale)......................... $18,000

Gain on sale of an investment .................................$2,000

<em>(To record sale of bond investment)</em>

3 0

3 years ago

Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to:

telo118 [61]

Answer:

Letter A is correct. <em>Face morale and motivation problems.</em>

Explanation:

A company with a high degree of formalization is a company with a vertical organizational structure. Vertical management is represented by a classic business structure, based on the principle of top-down authority and command and a fixed organization chart.

Being an inflexible organizational model, there are some disadvantages, such as difficulty in interaction between areas and teams, communication failure due to communication noise, which can lead to the creation of moral conflicts and also the lack of motivation of employees, which due to Organizational rigidity is not so active in the process of contributing ideas and suggestions to organizational objectives, as decision making is centralized and concentrated at the top of the hierarchy.

7 0

3 years ago

What is the yield to maturity on a bond that pays annual coupon rate of 14%, has a par value of $1,000, matures in 10 years, and

max2010maxim [7]

Answer:

Yield to Maturity =15.6%

Explanation:

The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond

The yield on the bond can be determined as follows using the formula below:

YM = C + F-P/n) ÷ 1/2 (F+P)

YM-Yield to maturity-

C- annual coupon

F- Face Value

P- Current Price

n- number of years

DATA

Coupon = coupon rate × Nominal value = 1,000 × 14%=140

Face Value = 1000

YM-?, C- 140, Face Value - 1,000, P-911 , n- 10

YM = (140 + (1000-911)/10) ÷ ( 1/2× (1000 + 911) )

YM = 0.156 × 100 = 15.6%

Yield to Maturity =15.6%

6 0

4 years ago

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 32,000 pairs

Effectus [21]

Answer:

35.98%

12,362 pairs

$2.53

9,688 pairs

Explanation:

As per the data given in the question,

As we know that

Contribution margin ratio = (Contribution margin per unit) ÷ (Selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - variable cost per unit\

So,

Selling price = $137.00

Variable cost = $87.70

Contribution Margin = $137.00 - $87.70 = $49.30

Contribution margin ratio = $49.30 ÷ $137.00

= 35.98%

Net Income after tax = $41,620

Income Before tax = $41,620 ÷ 50%

= $83,240

Now Pairs of touring skis will be sold by company = (Income before tax + fixed cost) ÷ Contribution Margin

= ($83,240 + $526,200) ÷ $49.30

= 12,362 pairs

Break-even of mountaineering model

= Fixed cost ÷ (Selling price per unit - variable cost per unit)

= $622,400 ÷ ($149 - $87.70)

= $10,153

Now Let Variable cost be Y

$10,153 = $526,200 ÷ ($137 - Y)

Y = $85.17

Therefore, Variable cost per unit decreased by

= ($87.70 - $85.17)

= $2.53

New Fixed cost

= Fixed cost × increased percentage

= $526,200 × 1.15

= $605,130

New variable cost per unit

= $87.70 × 0.85

= $74.54

New Break-even point = New Fixed cost ÷ Contribution Margin

= $605,130 ÷ ($137-$74.54)

= 9,688 pairs

4 0

3 years ago