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Genrish500 [490]
3 years ago
7

Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor

hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 15,000 9,000 Number of material moves 440 660 Number of setups 40 80 Total estimated overhead costs are $150,000, of which $110,000 is assigned to the materials handling cost pool and $40,000 is assigned to the setup cost pool.
Business
1 answer:
WARRIOR [948]3 years ago
5 0

Answer:

$93,750

Explanation:

Required: "<em>Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."</em>

<em />

Total estimated overhead costs (A) = 150,000

Total labor hours (B) = 15,000 + 9,000 = 24,000

Overhead allocation rate (C) = A/B = 150,000/24,000

Overhead allocation rate (C) = $6.25 Per labor hour

Total labor hours used by Fabric case (D) = 15,000 Hours

Overhead assigned to the fabric case (C*D) = $6.25 Per labor hour * 15,000 Hours = $93,750

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The following information to perform the calculations below (using the indirect method).
Liono4ka [1.6K]

Answer: -$556,000

Explanation:

Based on the information given in the question, the the amount of cash used by investing activities would be calculated as:

Purchase of long-term assets -612,000

Add: Sale of long-term investment at cost 56,000

The amount of cash used by investing activities would now be:

= -$612,000 + $56,000

= -$556,000

7 0
3 years ago
A $2,000 cash dividend is planned in 2019. No dividend was paid in 2018. 1,000 shares of 5% cumulative $10 par value preferred s
Irina-Kira [14]

Answer:

C) $1000

Explanation:

First lets calculate the cumulative preferred stock dividend for 2 years

(1000 * 10 ) * 5% = 500 / year

so for 2 years = $1000 since it is cumulative and not paid in one year is added to next year.

Total dividend payable = $2000

so for common stock whatever is left over is paid thus,

Common stock share = Total - Preferred cumulative = 2000 - 1000 = $1000

Hope that helps.

4 0
3 years ago
Consider a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio B has a beta of 0.8 and an
nirvana33 [79]

Answer:

B, A

Explanation:

A: 16% = 1.0F + 6%; F = 10%; B: 12% = 0.8F + 6%: F = 7.5%; thus, short B and take a long position in A.

4 0
3 years ago
Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid wer
ollegr [7]

Answer:

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

7 0
3 years ago
A company that manufactures bicycles has a fixed cost of ​$90000. It costs ​$100 to produce each bicycle. The total cost for the
Paul [167]

Solution:

The total cost for the company is the sum of its fixed cost and variable costs.

Corporate expenditures that do not depend on the amount of goods or services provided by the company are fixed costs.

Variable costs are expenses that change when changes occur in the sum of the good or service produced by a company.

C(x) = 90000 + 100x

C(110) = 90000 + 100 ( 110 )

C(110) = 90,000 + 11, 000 = 101,000

It costs $101,000 to produce 110 bicycles.

4 0
3 years ago
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