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Alik [6]
3 years ago
14

Lewis Corporation has two service departments: Data Processing and Administration/Personnel. The company also has three division

s: X, Y, and Z. Data Processing costs are allocated based on hours of use and Administration/Personnel costs are allocated based on number of employees. Department Direct Costs Employees Hours of use Administration/ Personnel $400,000 10 3,300 Data Processing 850,000 5 1,100 X 450,000 30 1,800 Y 300,000 15 2,200 Z 550,000 25 4,500 Assume that Data Processing provides more service than Administration/Personnel. Refer to Lewis Corporation. Assume that Data Processing costs have been allocated and the balance in Administration is $600,000. Using the step method, what amount is allocated to Y
Business
1 answer:
scZoUnD [109]3 years ago
3 0

Answer:

Lewis Corporation

Using the step method, the amount allocated to Y is:

Y =  $128,571

Explanation:

a) Data and Calculations:

Department      Direct Costs   Employees     Hours of use

Administration/            

Personnel         $400,000                10                3,300

Data Processing 850,000                 5                 1,100

X                         450,000                30                1,800

Y                         300,000                 15               2,200

Z                         550,000                25               4,500

Allocation of Administration/

 Personnel cost of $600,000:

X = $257,143 (600,000 * 30/70)

Y =  $128,571 (600,000 * 15/70)

Z = $214,286 (600,000 * 25/70)

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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
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not ro
____ [38]

Answer:

Interest= $90

Explanation:

Giving the following information:

Initial investment= $3,000

i= 3%

Number of periods= 1

<u>First, we need to calculate the future value, using the following formula:</u>

FV= PV*(1+i)^n

FV= 3,000*1.03= $3,090

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8 0
3 years ago
If a player chooses a mixed strategy in a Nash equilibrium, this implies that the payoff from using that mixed strategy is the s
son4ous [18]

Answer:

False.

Explanation:

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In playing this game, the players or participants can use the pure strategy or the mixed strategy. The mixed strategy is the use of different strategies randomly.

"If a player chooses a mixed strategy in a Nash equilibrium, this implies that the payoff from using that mixed strategy is the same as the payoff from using any of the pure strategies in it".

The statement given above is FALSE because the PAYOFF WILL INCREASE IF WE ARE TO PLAY A MIXED STRATEGY.

For instance if we have a head of 1 and -1, and a tail of -1 and 1, the payoff for pure strategy is likely one or minus one but for a mixed strategy it could be zero.

8 0
3 years ago
Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely
MaRussiya [10]

Answer: Wholesaler

Explanation:

Television Haven buys televisions from a manufacturer and then sells them to department stores. Television Haven is most likely a wholesaler.

A wholesaler involves someone who buys goods from the manufacturer or producer in bulk, that is large quantities and then sell to the retailers after which the retailer then sells to the consumers

Here, Television Haven is a whilesaler while the department store is a retailer.

5 0
3 years ago
Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $4.00 at the end of each
nikklg [1K]

Answer:

the required rate of return i r=0.13%

Explanation:

In order to calculate the required rate of interest in the case of a perpetual preferred stock we will use the following formula:

P(p) = D(p) / r

where P(p) is the preferred price of the stock, D(p) is the preferred dividend price and r is the required rate of interest.

This gives us the following values:

30 = 4 / r

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r = 0.13%

4 0
3 years ago
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