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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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The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The s

maksim [4K]

Answer:

The correct option is a. $7.50.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now provided as follows:

Activity-based costing is a costing system that involves identifying an organization's activities and assigning the cost of each activity to all products and services based on actual consumption.

Based on the data in the question, a haircut requires one units each of Hair Washing and Conditioning, while it requires zero unit of each of Chemical Treatment and Styling.

Therefore, we have:

Cost of services for a haircut = (Units of Hair Washing * Rate of Hair Washing) + (Units of Conditioning * Rate of Conditioning) = (1 * $4.00) + (1 $3.50) = $4.00 + $3.50 = $7.50

Therefore, the correct option is a. $7.50.

Download pdf

5 0

2 years ago

Legislates and enforces regulations that

Nikolay [14]

Answer:

Environmental Protection Agency

Explanation:

Out of all of the choices, the Environmental Protection Agency is the only administration that focuses on the protection of the environment, which would include the reduction of pollution, through protecting the air, water, and land.

OSHA and the FDA work to protect consumers and people in the workforce.

The SEC works with small businesses and investors.

8 0

3 years ago

On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.

ELEN [110]

Answer:

When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%

Explanation:

Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).

Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.

$r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1$

So, everything should look like this.

$r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923$

Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%

Best of luck.

8 0

3 years ago

Adam Smith used the “invisible hand” as a metaphor for the forces that balance a free market. What might be a good metaphor for

7nadin3 [17]

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2 years ago

Bond ratings are significantly based on all of the following EXCEPT:_______.

KiRa [710]

Answer:

c) The current ratio

Explanation:

The current ratio is an example of a liquidity ratio.

Liquidity ratios measure a company's ability to meet its short term obligations.

Current ratio = curernt assets / current liabilities

Return on assets is a profitability ratio. It measures return on investment

The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments

5 0

2 years ago