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ira [324]
2 years ago
15

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of

factory overhead): Plus Max Units produced 200 16,000 Batch size (units) 10 400 Number of setups 20 40 Direct labor hours per unit 5 5 Total direct labor hours 1,000 80,000 Cost per setup$1,080 Total setup cost$64,800 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:Multiple Choice$21.60; $.54.$60.00; $60.00.$108.00; $2.70.$54.00; $27.00.$200.00; $16,000.00
Business
1 answer:
Ad libitum [116K]2 years ago
3 0

Answer:

Apportioned set-up cost

Plus =$21,600

Max=$43,200

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.  

<em>Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers. </em>

<em>The cost driver in this scenario is the number of set-ups</em>

Activity rate per driver is calculated as:  

Activity overhead for the period / Total cost drivers for the period

So, we can apply this formula to the scenario above:

Set-up overhead= $64,800

Total set-ups for the period = 20 + 40 = 60

Overhead cost per set-up = $64,800/60=1,080

Set-up cost allocation:

Plus - 20 × 1,080=$21,600

Max- 40 × 1,080=$43,200

Apportioned set-up cost

Plus =$21,600

Max-=$43,200

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Artyom0805 [142]

Answer:

The assembly line efficiency is 4.17% (to 2 decimal places)

Explanation:

Efficiency is a measure of productivity that is used to determine how well a target is achieved, by finding the ratio of the actual output to the expected output. In this example, the number of units is the output of the assembly line, and the assembly line efficiency is calculated as follows:

Assembly line efficiency = (actual output) /(required output) × 100

actual output = 25 minutes

if 5 minutes = 1 unit

∴ 25 minutes = 1/5 × 25 = 5 units

∴ actual output = 5 units

required output = 120 units

∴ efficiency = \frac{5}{120} *100

= 4.17%

5 0
3 years ago
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6 0
2 years ago
Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won
Stolb23 [73]

Answer:

The correct option is (b)

Explanation:

According to the scenario, the foreign currency that original sold at the market is shown below:

= (Forward rate to Jan 15 - Spot rate) × paymen made

= ($0.00089 - $0.00082 ) × 20 million

= $0.00007 × 20,000,000

= $1,400 premium

hence, the foreign currency that originally sold at the market is $1,400 premium

Therefore the correct option is (b)

5 0
2 years ago
You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.
olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

                     = (8,000*$1,060) + (310,000*$57) + (15,000*$72)

                     = $8,480,000 + $17,670,000 + $1,080,000

                      = $27,230,000

weight of debt = debt/total finance

                         = $8,480,000/$27,230,000

                         = 0.31

weight on equity = equity/total finace

                             = $1.080.000/$27,230,000

                             = 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0
2 years ago
Ken's Car Repair uses a 35.00% material loading charge and a labor rate of $23.00 per hour. How much will be charged on a job th
Art [367]

Answer:

the amount charged on a job is $401.50

Explanation:

The computation of the amount charged on the job is shown below:

The Amount to be charged is

= Material Loading Charge + Labor Charge + Materials Cost

= 35% × $110 + $23 Per Hour × 11 Hours + $110

= $38.50 + $253 + $110

= $401.50

Hence, the amount charged on a job is $401.50

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

4 0
3 years ago
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