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MArishka [77]
2 years ago
14

Monroe Corporation manufactures modern and antique clocks. Monroe's total overhead costs consist of assembly costs and inspectio

n costs. The following information is available: Cost Antique Modern Total Cost Assembly 3,600 mach. hours 1,200 mach. hours $168,000 Inspections 600 200 $80,000 4,500 labor hours 4,000 labor hours Monroe is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much of the assembly cost is assigned to the modern clocks
Business
1 answer:
lara31 [8.8K]2 years ago
8 0

Answer: $42,000

Explanation:

The total cost of Assembly is $168,000.

This is for the machine hours spent on both Antique and Modern clocks of:

= 3,600 + 1,200

= 4,800 hours

Modern clocks assembly costs would be:

= Modern clock machine hours / Total machine hours on assembly * Cost of assembly

= 1,200 / 4,800 * 168,000

= $42,000

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It’s when you convince people to buy a product, or service. Marketing is used in this.

Explanation:

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3 years ago
?if a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if
MrRissso [65]
$8,000,000 - corporate issued
5 % -  annual interest
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Annual net cash cost - ?

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Answer: The Annual net cash cost - $280,00
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3 years ago
Ying purchased a new brand of laundry detergent. When she used the detergent for the first time, she was highly frustrated becau
Sedbober [7]

Answer: C. Low-involvement consumer

Explanation:

A low-involvement consumer could be described as someone who does not observe much risk in a product after purchase and could continue using the product due to his or her reservation on the product instead of returning to the retailer where it was gotten. Ying discovers that she can manage the detergent as long as it's able to remove stain from her cloth even though it has a bad odour. She is seen as a low-involvement consumer.

3 0
3 years ago
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000
Vitek1552 [10]

Answer:

<em>Preparation of Journal Entries</em>

<u>Date                      Particulars                                  Dr($)                Cr($</u>)

January 3, 20x2      Cash & Receivables              57,000

                                 Inventory                                165,000

                                Buildings & Equipment           307,000

                                Patent                                       203,000

                                Account Payable                                               20,000                                                

                                Purchase Consideration                                    632,000                                                                  

                               Gain on Purchase Bargain                                  80,000                                

                              <em> (Being purchase of Lark</em>

<em>                                Corporation`s net assets)                                                                      </em>

<em />

<em>Recording of merger costs.</em>

(Debit)  Cash                                                             $9,000

(Credit)  Merger Expenses                                       $9,000

Recording of acquisition of Lark Corporation`s net assets

(Debit)  Investment in Lark`s net asset                    $712,000

(Credit)   Cash                                                            $632,000

(Credit)  Gain on Purchase Bargain                          $80,000

<em />

Explanation:

When acquiring another business, net asset (Total Assets - Total Liabilities) is valued at fair value (sometimes called market value, not book value.  Hence, the reason why the fair value of Lark`s assets and liabilities was used in the calculation above. So the net assets  ($57,000+$165,000+$307,000+$203,000 - $20,000) = $712,000.

After, calculating the net assets of the Lark, the purchase consideration given by Bower Company has to be removed from the net asset, in order to get the goodwill or gain on purchase bargain on the acquisition. The formula is Purchase consideration - Net assets of the target company = Goodwill (Gain on purchase bargain). If the purchase consideration is higher than the net assets, then goodwill is obtained. If the purchase consideration is lower than net assets acquired then, gain on purchase bargain is obtained.

In Bower`s case, gain on purchase bargain is obtained because net assets is  greater than purchase consideration ($632,000 - $712,000).

<em>Merger cost</em>

Merger cost is not considered as part of purchase consideration. The merger cost is taken to income statement of Bower Corporation as expense.

3 0
3 years ago
The master budget of Swifty Corporation shows that the planned activity level for next year is expected to be 50000 machine hour
densk [106]

Answer:

Total Manufacturing Overheads = $1198,333

Explanation:

<em>Machine Supplies would vary with the new level of machine hours. therefore flex the overheads to obtain the budgeted manufacturing overheads.</em>

<em>Note ; Depreciation remains constant as this is not affected by new level of machine hours</em>

<u>Total manufacturing overhead costs at a level of 60000 machine hours</u>

Indirect labor (780,000 /50,000×60,000)             650,000

Machine supplies ($250000/50,000×60,000)      208,333

Indirect materials  (180,000/50,000×60,000)        150,000

Depreciation on factory building                             190,000

Total Manufacturing Overheads                             1198,333

3 0
3 years ago
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