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
The desire for a product class rather than for a specific brand is called __________ demand.
sveta [45]
The desire for a produsct class rather than for a specifik brand is called selective demand
8 0
3 years ago
Global Commerce Corporation purchased trading debt investments for $136,000 on December​ 31, 2018. There is a decrease of $3,400
stellarik [79]

Answer:

A. Unrealized Holding  Loss - Trading 3,400

Fair Value  Adjustment - Trading 3,400

Explanation:

Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:

Dr Unrealized loss on trading security 3,400

     Cr Debt investments 3,400

This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.

3 0
3 years ago
The upper class makes up about 25 percent of the population in the United States. True or False
jeyben [28]
Yes that is correct :)
5 0
3 years ago
Read 2 more answers
On January 1, 2021, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 1
anygoal [31]

Answer:

$372,000

Explanation:

The computation of the amount to be reported in the balance sheet is shown below:

= Number of shares of common stock × fair value of the Papa stock on that date per share

= 6,200 shares × $60

= $372,000

Since in the question it is given that the Nana company does not have significant influence over Papa Company which means that the net income, retained earning, dividend is not be considered.

Therefore, the investment should be reported at the fair value

6 0
3 years ago
Which of the following influences the consumer when he or she is deciding wether to buy a product?
Georgia [21]

Answer:

D.

Explanation:

The factors that infuence a consumer's decision of buying product are multiple. It can be internal, external, economic, cultural, etc.

These factors include psychological factor, social factor, cultural factor, situational factor, etc.

Many times it's psychological factors such as moods. If a person is in bad or good mood, it will affect his behavior to buy a product. Culture or social life also influences consumer's buying habit. Some buy under peer pressure or to have status in society.

Therefore, option D is correct.

5 0
3 years ago
Read 2 more answers
Other questions:
  • ‍You have just decided to add a new line to you manufacturing plant. Compute the expected loss/profit from the addition if you e
    7·1 answer
  • In business, failure usually means what? A. The market wasn't saturated enough. B. The company was unethical. C. The customers h
    14·2 answers
  • ______ can be defined as the general plan of action that describes resource allocation and other activities for dealing with the
    8·1 answer
  • Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians
    10·1 answer
  • Which of the following statements is CORRECT?a. Ethical behavior is not influenced by training and auditing procedures. People a
    10·1 answer
  • What are the benefits of transferable skills? Check all of the boxes that apply.
    14·2 answers
  • Inferior Company sells products that are poorly made. Jock, who has never bought an Inferior product, files a suit against Infer
    5·1 answer
  • Diel entered into a written contract to sell a building to Stone. The contract was properly recorded. Stone breached the contrac
    6·1 answer
  • In her role as a grocery store general manager, Shara is able to make changes that affect customers, store employees, and indivi
    5·1 answer
  • Time value of money is an important aspect of money management. Why is it important to know what interest rates, terms of an agr
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!