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3 years ago

Difference between real flows and monetary flows

1 answer:

3 0

Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.

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Garden Zurich Corp. manufactures garden fountains. It currently has two product lines, the basic and the luxury. Garden Zurich h

wolverine [178]

Answer:

Garden Zurich Corp.

a. Traditional costing system with machine hours as the cost driver:

Overhead rate = $171,500/10,000 = $17.15

Overhead assigned to each product line:

Basic = $85,750 ($17.15 * 5,000)

Luxury = $85,750 ($17.15 * 5,000)

b. Activity rates for each cost pool:

Materials handling = $200 ($14,000/70)

Quality control = $100 ($37,500/375)

Machine maintenance = $120 ($120,000/1,000)

Explanation:

a) Data and Calculations:

Total overhead = $171,500

Basic Luxury

Direct costs $200 $300

Selling price 500 750

Contribution $300 $450

Production units 800 500

Activity Cost Cost Driver Cost Assigned to Pool Quantity/Amount

Pools Basic Luxury

Materials handling Number of moves $14,000 20 50 moves

Quality control Number of inspections $37,500 250 125 inspec.

Machine Number of machine

maintenance hours $120,000 5,000 5,000 m.hour

Total overhead costs $171,500

4 0

2 years ago

Allocative efficiency occurs when the a. minimum of average total cost equals average revenueb. minimum of average total cost eq

Usimov [2.4K]

Answer: Allocative efficiency occurs when the marginal cost equals the marginal benefit to society

Allocative efficiency is a state of the economy in which production stand for individual preferences, every commodity or work is produced up to the state where the last part renders a marginal benefit to individual equal to the marginal cost of producing.

Therefore the correct option is (c)

3 0

3 years ago

Natural gas is often priced in units of dollars per therm. One therm equals 100,000 BTUs . A certain family uses 600 therms of e

ololo11 [35]

Answer:

-$28.8.

Explanation:

Note, we were told,

to assume the cost of a therm is $0.30
the family uses 600 therms of energy annually.

Savings on old furnace:

600 * $0.30 * 0.80 (or written as 80%) = $144

Savings on new furnace:

600 * $0.30 * 0.96 (or written as 96%) = $172.8

Difference: $144 - $172.8 = -$28.8.

7 0

2 years ago

Karley's setting aside $32,000 each quarter, starting today, for the next three years for an expansion project. How much money w

Mashutka [201]

Answer:

Final Value= $414,135.43

Explanation:

Giving the following information:

Quarterly deposit= $32,000

Number of quarters= 3*4= 12

Interest rate= 0.0545/4= 0.01363

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit

FV= {32,000*[(1.01363^12)-1]} / 0.01363

FV= $414,135.43

8 0

3 years ago

Two main reasons a company will market its products are to _____. (Select all that apply)

Leni [432]

Answer:

3. consumers know what is available

Explanation:

3 0

2 years ago

Difference between real flows and monetary flows​

Difference between real flows and monetary flows