1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lbvjy [14]
3 years ago
15

In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a complete inventory count of

all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items.
ITEM NUMBER ANNUAL USAGE ITEM NUMBER ANNUAL USAGE
1 $ 1,500 11 $ 13,000
2 12,000 12 600
3 2,200 13 42,000
4 50,000 14 9,900
5 9,600 15 1,200
6 750 16 10,200
7 2,000 17 4,000
8 11,000 18 61,000
9 800 19 3,500
10 15,000 20 2,900
a. What would you recommend Taylor do to cut back its labor cost? (Illustrate using an ABC plan.)
b. Item 15 is critical to continued operations. How would you recommend it beclassified?
Business
1 answer:
N76 [4]3 years ago
4 0

Answer:

a) Taylor Industries can successfully cut back its labor cost in inventory stockrooms by counting only high-value items.  These items are determined by reference to their Annual Usage values.  The items' annual usage values should be used as the activity cost pool for accumulating and allocating labor cost in inventory stockrooms.  Taylor Industries can establish a benchmark or cutoff point so that only the items meeting this benchmark are counted.  For example, the items with annual usage value above $5,000 should be included in the items to be counted.  This strategy will reduce the number of items to be counted and therefore the labor cost.

b) Since item 15 is critical to Taylor Industries' continued operations, it should be classified as a direct materials cost and not an overhead cost.

Explanation:

a) Data and Calculations:

a random sample of 20 of Taylor's items:

ITEM NUMBER   ANNUAL USAGE    ITEM NUMBER    ANNUAL USAGE

1                               $ 1,500                      11                       $ 13,000

2                               12,000                     12                              600

3                                2,200                      13                        42,000

4                              50,000                     14                           9,900

5                                9,600                     15                            1,200

6                                   750                      16                         10,200

7                                2,000                      17                          4,000

8                               11,000                      18                         61,000

9                                  800                       19                         3,500

10                            15,000                      20                        2,900

Average annual usage value = $12,657.50

You might be interested in
​_______ agreements ensure that communications carriers exchange traffic on their networks freely.
fgiga [73]
The answer to this question is peering agreements
In peering agreement, we basically agree to an exchange of information between two internet service providers.
This type of network is utilized by a program known as torrent, which is popular for computer users that wanted to share a certain file openly to the mass.
4 0
3 years ago
Read 2 more answers
Simon owns stock that has declined in value since acquired. He has decided either to give the stock to his nephew, Fred, or to s
Rudiy27

Answer:

It appears on the surface that Simon must give the stock to Fred and let Fred sell it, because Fred is in the higher tax bracket (i.e., 22% compared to Simons 12%). But for gift property, the basis of loss to the donee is the lower of (1) the adjusted basis of the donor, or (2) the amount of fair market value (FMV) on the date of the gift. Thus as Fred cannot take benefit of the loss, Simon must sell the stock, deduct the realized loss, and sales proceeds should be given to Fred.

When Simon sells the stock and handover the sale proceeds to Fred, in that case the capital gain received from the stock's sale will be taxed on Simon as per his tax bracket. The transfer of sale proceeds to Fred will not have any impact on tax.

8 0
3 years ago
What is an accurate definition of a value?
jenyasd209 [6]

Answer:

A possible answer: Value is how much worth something has to you.

Explanation:

Have a great rest of your day :)

4 0
3 years ago
Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. White Company projects sales of
lianna [129]

Answer:

$55,000

Explanation:

we must determine the total budgeted manufacturing cost per unit = direct materials per chair x direct labor per chair + variable manufacturing overhead cost per chair = $60 + $30 + $20 = $110 per unit

total budgeted sales = 500 units sold in January

budgeted cots of goods sold = 500 units x $110 per unit = $55,000

3 0
3 years ago
Which of the following is not a correct statement about noncontrolling interest?
kicyunya [14]

Noncontrolling interests are entitled to preference in dividends and payouts in liquidation is not a correct statement about noncontrolling interest.

Option B

<u>Explanation: </u>

Non-controlling interest (NCI) is the part of the equity in a corporation not directly related to a parental company that has a controlling interest (above 50% but below 100%) and strengthens the financial results of the corporation with its own.

Suppose, for example, that Alpha acquires 80 percent of Sierra's outstanding stock. As Alpha controls over 50% of the Sierra region, Alpha consolidates the financial performance of Sierra that has its own financial results.

Alpha's balance sheet reports as NCI 20 percent of the Sierra equity which Alpha does not own. In proportion to their amounts of holding, the Incorporated Net Income is assigned to parental and non-controlling interest parties (minority shareholders); 80% to Alpha and, in this situation, 20% to un-controlling interest.

7 0
3 years ago
Other questions:
  • Last year’s sales were $9,815,000 and are projected to increase by 4.5% for next year. Last year’s expenses were 41% of last yea
    14·1 answer
  • The United States began collecting federal income tax in which year?
    12·2 answers
  • Variable costs change with Group of answer choices changes in target return pricing. changes in fixed costs. changes in the quan
    10·1 answer
  • Use the following information to answer this question. Bayside, Inc. 2010 Income Statement ($ in thousands) Net sales $ 6,090 Le
    7·1 answer
  • Which fiduciary act requires that an agent act in good faith and obey the principal's directions as outlined in the contract?
    10·1 answer
  • Over the past several decades: A. international investment has become more one-sided, consisting almost entirely of foreign dire
    10·1 answer
  • What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rat
    13·1 answer
  • On January​ 1, 2018, Tyson Manufacturing Corporation purchased a machine for​ $40,000,000. Tyson's management expects to use the
    7·1 answer
  • If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers
    12·1 answer
  • How is the Sole Trading business financed?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!