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AlladinOne [14]
3 years ago
5

Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Tot

al Activity Assembly $1,137,36084,000 machine-hoursProcessing orders $28,4791,100 ordersInspection $97,1551,270 inspection-hours. The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit. According to the activity-based costing system, the product margin for product W26B is: A. $16,675.60B. $3,384.70C. $4,679.20D. $6,444.70
Business
2 answers:
const2013 [10]3 years ago
7 0

Answer:

The answer is B) $3384,70

Explanation:

First we need to split the 3 main cost drivers into

Machine Hours - $1137360 / 84000 = 13,54

Processing Hours - $28479 / 1100 = 25,89

Inspection Hours - $97155 / 1270 = 76,5

Now we use the actual hours for the 470 units of W26B

470 units require 660 machine hours ( 660 x 13,54 ) + 40 inspection hours ( 40 x 76,5 ) + 50 orders ( 50 x 25,89 )

The total costs excluding the materials and labor cost are = $13290,9

Now we include the material and labor costs

Material Cost = 40,30 x 470 =  $18941

Labors Costs = 42,22 x 470 =  $19843,4

Total costs = $52075,3

Product sales = 118 x 470 = $55460

The margin = $3384,70

Therefore the answer is C.) 3384,70 as proven by the calculation above.

Kamila [148]3 years ago
3 0

Answer:

Option C. $3,384.7

Explanation:

The cost pool per cost driver can be calculated as under:

Cost Pool per Cost Driver = Total Coot Pool / Respective T.Cost Driver

Here

Total cost pool                     Respective Total Cost Driver

 $1,137,360                                  84,000 Machine Hours

 $28,479                                      1,100 Orders

 $97,155                                       1,270 Inspection Hours

Now,

Assembly cost per machine hour = $1,137,360 / 84,000 = $13.54 per Machine hour

Processing cost per order =  $28,479 / 1,100 = $25.89 per Orders

Inspection cost per inspection hour = $97,155 / 1,270 = $76.5 per inspection hour

Now for 470 units W26B, total machine hours worked are 660 machine hours, 50 orders and 40 inspection hours.

So:

Total ABC per 470 units of W26B = 660 * $13.54   +  50 * $25.89 + 40 * $76.5 = $13,291 per 470 units

Total ABC per unit W26B = $13,291 / 470 = $28.27 per unit

Total Product Cost = Prime Cost per unit  + Total ABC per unit

By putting values, we have:

Prime cost per unit = $40.3 + $42.22 = $82.52

Now

Total Product cost = $28.27 + $82.52 = $110.79

Which means product margin is $7.21 per unit and total margin for the year is $3389 ($7.21 * 470 units) which is close to $3,384.7 and the difference is because of rounding figures. So the right option is C.

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If businesses follow regulations, financial disasters are far less likely.
lys-0071 [83]

Answer:

True

Explanation:

All businesses, regardless of type or size, must abide by statutes and regulations. Laws comes from all levels of government. Some laws apply to specific sectors, but the majority addresses the entire industry.

Regulations deal with business registration, licensing, and employee compensation. Laws related to professional bodies such as lawyers or doctors must be adhered to by relevant businesses.  Governments impose regulations on taxation, statutory deduction, and safety in the workplace.

Following regulations protects the customers, employees, and businesses.  An employee who follows the law knows what is expected of them. Following rules will save the company from lawsuits. Employees will feel confident and motivated when they work for a company that follows the law.

Not following the law will cause problems with the tax authorities.  It may lead to misrepresentation of financial records or expose employees to hazardous work environments.  Such a business will most likely face may lawsuits that come along with huge costs. Not following the law may lead to the collapse of a company.

6 0
3 years ago
Chuck Diesel Burger is a food truck in Houston, Texas. Imagine that Chuck Diesel Burger’s minimum average total cost (ATC) is $3
Trava [24]

Answer:

The answer is: $3.00

Explanation:

In order for Chuck Diesel Burger to make a profit it must sell its product at ˃$3.75.

If it sells its product at $3.75 it will break even (costs = revenue).

If its price is <3.75 but ˃$2.50 it will lose money but still produce, since its revenue is ˃ than its variable cost.

Any price ≤$2.50 would make it impossible for Chuck Diesel Burger to continue production since its revenue is < variable production costs.

5 0
3 years ago
In a recent year hart corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. what was
makkiz [27]

Net income = $125,000

Interest expense = $30,000

Tax expense = $40,000

Interest times hart corporation earned for the year = ?

First add all the expenses and then divided by interest expense to get interest times.

= ($125,000 + $30,000 + $40,000) / $30,000

= $195,000 / $30,000

<span>= 6.5 </span>

4 0
3 years ago
In early April 2020, an amendment to the annual budget for 2020 was approved by the city council for inflows and outflows in the
djverab [1.8K]

Answer:

attached below

Explanation:

Given data :

Year : 2020

estimated other financing sources = $20,000 ( premium on bonds sold )

estimated revenues = $12500 ( accrued interest on bonds sold )

approximations in amount of one interest payment = $25,000 ( to be made during 2020 )

attached below is the Budget for the street improvement Bond debt service fund for year 2020

3 0
2 years ago
Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi
blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

    <u>Cr Cash 5,000</u>

December 31, dividends received

<u>Dr Cash 60</u>

    Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

    Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

  • Decrease by $5,000 due to the purchase of stocks.
  • Increase by $60 due to the dividends received.
  • net cash from investing activities = -$4,940

4 0
3 years ago
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