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3 years ago

EB10.

Business

1 answer:

mafiozo [28]3 years ago

8 0

Answer:

The question is incomplete; the complete question is given below.

Cost Pool Cost Driver Estimated Cost Driver Estimated Overheads

Material Material requisition 250,000.00 $105,000.00

Machining Machine hours 360, 750 $432,900.00

Inspection Number of inspections 25,000.00 $15,750.00

Answer:

Overhead rate per activity :Material- $0.42, Machining-$1.2, Inspection-$6.3

Explanation:

Activity-based costing aims to achieve better product pricing than traditional absorption cost by charging overheads to the product cost more accurately.

Activity-based costing uses cost drivers to charge overheads to cost unit as against the use of of volume-based bases like labour hours, machine hours. Overheads are first traced to the activities responsible for them- the sum is called cost pool. Cost pools are then absorbed into the cost unit using cost driver rates

Cost pool- the sum of the total overheads associated with an activity. E.g $105,000 material requisition overheads.

Cost driver: A factor that causes a change in the cost pool. E.g

250,000 material requisitions.

Cost per driver: A specific overhead absorption rate computed for an activity. It is calculated as follows:

Cost per driver = Estimated activity overheads/Total number of cost drivers

The predetermined overhead rate for each activity is calculated as follow;

Material requisition= $105,000/250,000 requisitions= $0.42 per requisition

Machining = $432,900/360,750 machine hours = $1.2 per machine hour

Inspection= $15,750/ 25,000 inspections = $6.3 per inspection

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When manufacturing overhead costs are assigned to production in a process cost system, it means that

Colt1911 [192]

Answer:

When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

Explanation:

When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

Absorption costing system is that where units of products and inventories are valued using full cost. Full cost implies that each product would be charged for an amount of the fixed production overhead in addition to the variable cost.

The fixed overhead is charged using a predetermined overhead absorption rate.

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3 years ago

: Typically required on ________ loans when the down payment is less than ______% and loan-to-value ratio is in excess of ____%.

BARSIC [14]

Answer:

Mortgage, 20%, 80%

Explanation:

Typically required on Mortgage loans when the down payment is less than 20% and loan-to-value ratio is in excess of 80%. Loans with higher LTVs don't conform to Fannie Mae/Freddie Mac guidelines, so a lender may require PMI to offset the risk.

3 0

3 years ago

Marcella has a $65,000 basis in her 50% partnership interest in the JM Partnership before receiving any distributions. This year

PSYCHO15rus [73]

Answer:

C) $40,000 inventory basis, $15,000 JM basis.

Explanation:

JM distributed $80,000 worth of inventory, since Marcella has a 50% partnership interest, then half of the inventory belongs to her, $40,000 (= $80,000 / 2).

Since Marcella also received $10,000 in cash from JM, then her remaining basis in the partnership is:

$65,000 - $40,000 - $10,000 = $15,000

3 0

3 years ago

The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc.

Sidana [21]

Answer:

Machine B has a higher NPV therefore should be produced

Explanation:

The machine with the higher Net Present Value (NPV) should be produced .

NPV of Machine A

PV of cash flow

PV of annual profit = A × (1- (1+r)^*(-n)/r

A- 92,000, n- 11, r- 12%

PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32

PV of salvage value = 13,000× 1.12^(-11)= 3737.189

NPV = 546268.320 + 3737.189 -250,000 = $300,005.50

NPV of Machine B

A- 103,00, n- 19, r- 12%

PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165

Pv of salvage value = 26000× 1.12^(-19)= 3018.776199

NPV =758675.0165 + 3018.77 -460,000 = $301,693.79

Machine B has a higher NPV , therefore should be produced.

6 0

3 years ago

Read 2 more answers

"An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, w

lesantik [10]

Answer:

The expected annual return of Portfolio is 12.00%

Explanation:

The portfolio return is calculated by multiplying the individual security return with weight of individual security in the portfolio. We have three securities R, J and K with expected return on 12%, 18% and 8% with weight of 50%, 20% and 30%. Through multiplying them we get individual return of security that is 6%, 3.6% and 2.4%. The weighted average portfolio return is 12%

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3 years ago