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garri49 [273]
3 years ago
13

Choosing cost drivers, activity-based costing, activity-based management. Pastel Bags (PB) is a designer of high-quality backpac

ks and purses. Each design is made in small batches. Each spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows:
Pastel Bags Budget for Costs and Activities For the Year Ended February 28, 2014

Direct materials—purses $319,155
Direct materials—backpacks 454,995
Direct manufacturing labor—purses 99,000
Direct manufacturing labor—backpacks 113,000
Setup 64,000
Shipping 73,000
Design 169,000
Plant utilities and administration 221,000
Total $1,513,150


Other budget information follows:


Backpacks Purses Total
Number of bags 6,175 3,075 9,250
Hours of production 1,665 2,585 4,250
Number of batches 120 80 200
Number of designs 2 2 4

Required:
a. Identify the cost hierarchy level for each cost category.
b. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
c. Calculate the budgeted cost per unit of cost driver for each cost category.
d. Calculate the budgeted total costs and cost per unit for each product line.
e. Explain how you could use the information in requirement 4 to reduce costs.
Business
1 answer:
Andrej [43]3 years ago
6 0

Answer:

vcvgbExplanation:

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Answer:

C. Deductible.

Explanation:

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Deductible is the term used to describe the dollar amount of a physical damage claim paid by the policyholder.

5 0
3 years ago
Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument sho
masha68 [24]

The instrument that Shawn must use is “payable to the order of” before the name of the payee.

<h3>Requirements of Negotiability </h3>
  • The first of the four major considerations is whether or not a paper is negotiable, and it is one that nonlawyers must address.
  • Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
  • In a negotiable instrument, the only permissible promise or direction is to pay a particular sum of money. Any other promise or command renders negotiability null and void
  • This restriction exists to prohibit an instrument from having an uncertain value.
  • If the bearer of a negotiable instrument had to examine whether a provision or condition had been met before the thing had any value, the utility of the object as a substitute for money would be severely diminished.

Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.

To learn more about the Negotiation instrument refer to:

brainly.com/question/9312091

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5 0
2 years ago
Define office .Explain its importance ​
snow_tiger [21]

Answer:

Therefore, An office is an important part of the organization in which different administrative and clerical functions are performed to achieve the objective of the organization. It has given importance to a functional area of business rather than a specific place. ... The office is the brain of an organization.

7 0
3 years ago
Which section of a business plan gives details about a business’s core products and services?
yuradex [85]

Answer:

the executive summary. (more info below)

Explanation:

A strong executive summary is a convincing one. It shows the mission statement of the organization, along with a brief summary of its goods and services. It may also be a smart opportunity to clarify briefly why you are beginning your company and to give specifics about your background in the field that you are joining.These four key sections are what the 4 major sections of a business plan, the executive summary, marketing plan, key management bios, and financial plan.

hope this helped!

5 0
3 years ago
Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct
photoshop1234 [79]

Answer:

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

Explanation:

<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>

The relevant cash flows figures include:

  1. Internal variable cost of production
  2. External purchase price
  3. Savings in internal; fixed cost as result of buying outside

Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500

Increase in variable cost if purchased externally = 66500 - 66500 = 0

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

6 0
3 years ago
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