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2 years ago

Paparo Corporation has provided the following data from its activity-based costing system:

Business

1 answer:

BARSIC [14]2 years ago

8 0

Answer:

Unitary total cost= $123.74

Explanation:

First, we need to calculate the activities rates to allocate costs:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 926,800/56,000= $16.55 per machine-hour

Processing orders= 68,310 / 1,800= $37.95 per order

Inspection= 103,360 / 1,360= $76 per inspection-hour

Now, we can allocate costs based on actual activity:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Assembly= 16.55*1,060= 17,543

Processing orders= 37.95*80= 3,036

Inspection= 76*20= 1,520

Total allocated costs= $22,099

Unitary allocated costs= 22,099/700= $31.57

Finally, the unitary total cost:

Unitary total cost= 31.57 + 51 + 41.17

Unitary total cost= $123.74

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4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton falls substantially. The demand

antoniya [11.8K]

Answer:

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

This is because it is temporary and people in the affected sector could opt for jobs in other performing sectors of the economy.

Explanation:

Suppose the world price of cotton falls substantially, the following scenario will ensue.

The demand for labor among cotton-producing firms in Texas will reduce .

The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will also decline .

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

Frictional unemployment is seasonal employment that could occur when there is no demand or work period is completed unlike structural unemployment that can last for long.

It is a temporary unemployment situation because workers in the cotton industry could opt for jobs in other performing sectors of the economy.

5 0

3 years ago

During March, Adams Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume t

ad-work [718]

Answer:

Option (c) is correct.

Explanation:

Variable cost as a percent of sales:

= (Variable expenses ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100

= 60%

If Sales = X

then Variable cost is 0.6X (i.e. 60% of Sales)

Sales - Variable cost - fixed expenses = net operating income

X - 0.6X - 1,500,000 = 300,000

0.4X = 300000 + 1500000 = 1800000

X = 1800000 ÷ 0.4

= 4,500,000

4 0

3 years ago

The inventory costing method that reports the earliest costs in ending inventory is:_______

nikdorinn [45]

Answer:

a. LIFO.

Explanation:

The LIFO method refers to an inventory method that means the item which is last purchased should be sold first during the period of time. So in this inventory method the earliest cost in the closing inventory should be recorded

Therefore the given situation, the correct option is a.

And, the other options are wrong

4 0

3 years ago

Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run

konstantin123 [22]

Answer:

Ease of entry into the market

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services.

In the long run, perfect competition make zero economic profit because if firms are making economic profits in the short run , new firms would enter into the industry in the long run. This is made possible because of the ease of entry into the market.

I hope my answer helps you

3 0

3 years ago

Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the product

jek_recluse [69]

Answer:

Product 1 - $36

Product 2 - $ 96

Product 3 - $66

Explanation:

The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.

These costs includes cost of purchase, freight, Insurance cost during transit etc.

Subsequently, inventory is to be carried at the lower of cost or net realizable value.

The NRV is the Selling price less the cost to sell.

Given

Product 1 Product 2 Product 3

Cost $36 $ 106 $ 66

Selling price $ 88 $ 168 $ 118

Costs to sell $ 9 $ 72 $ 26

NRV $ 79 $ 96 $ 92

6 0

3 years ago