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2 years ago

Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:

Business

1 answer:

Amiraneli [1.4K]2 years ago

8 0

Answer:

Results are below.

Explanation:

First, we need to calculate the activity rate for each activity:

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

Machining= 312,000/80,000= $3.9 per machine hour

Designing costs= 73,600/8,000= $9.2 per design hour

Setup costs= 71,600/500= $143.2 per batch

Now, we can allocate overhead to each product:

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

Product A:

Machining= 3.9*30,000= 117,000

Designing costs= 9.2*3,200= 29,440

Setup costs= 143.2*50= 7,160

Total overhead= $153,600

Product B:

Machining= 3.9*40,000= 156,000

Designing costs= 9.2*1,800= 16,560

Setup costs= 143.2*175= 25,060

Total overhead= $197,620

Product C:

Machining= 3.9*10,000= 39,000

Designing costs= 9.2*3,000= 27,600

Setup costs= 143.2*275= 39,380

Total overhead= $105,980

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3 years ago

Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p

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Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

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N =5

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3 years ago

Of the two main methods of withholding, only the wage-bracket method distinguishes unmarried persons from married persons.

BigorU [14]

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3 years ago

On December 31 of Swift Co.’s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of it

pishuonlain [190]

Answer:

1. $66,000

2. $66,000

Explanation:

The computations are shown below:

1. Before written off:

= Account receivable balance - uncollectible amount

= $70,000 - $4,000

= $66,000

2. After written off:

= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount

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3 years ago

ou are scheduled to receive $35,000 in two years. When you receive it, you will invest it for 8 more years at 6.5 percent per ye

Studentka2010 [4]

Answer:

$57,925

Explanation:

n = 8 years

i/r = 6.5%/year

PV = $35,000

The amount in 10 years (FV) = 35,000 x (1+0.065)^8 = $57,925

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3 years ago