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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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Ordering cost only consists of the shipping cost from supplier to customer. True or False
Dennis_Churaev [7]

Answer:

False

Explanation:

Ordering costs are the costs incurred when materials are requested for. These components of this cost are:- 1)Clerical and administrative costs involved in purchasing and accounting for the goods ordered.

2)Cost of transportation

3)Retooling cost: This happens when the product is manufactured internally. Retooling means change of working tools.

4)Insurance while in transit.

5)Drivers' salaries and allowances

6)Loss of materials while in transit.

7)Taxes, custom duties and import duties.

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tangare [24]
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6 0
3 years ago
he Yachtsman Fund had NAV per share of $36.12 on January 1, 2016. On December 31 of the same year, the fund's NAV was $39.71. In
photoshop1234 [79]

Answer: 14.84%

Explanation:

To calculate the rate of return the investors received we will do a simple return formula to find out by how much, in terms of the Opening NAV, the fund has increased.

To find out how much the fund has increased by we can add up all the figures then deduct the opening balance.

= 39.71 + 0.64 + 1.13 - 36.12

= $5.36

$5.36 is the how much the fund has increased by.

Expressing it in percentage of the opening NAV per share we have,

= 5.36/36.12

= 0.14839424141

= 14.84%

14.84% is the rate of return that an investor received on the Yachtsman Fund in 2016.

7 0
3 years ago
Distinguish between planned economy and mixed economy​
Maslowich

Answer:

  • <em><u>Command Economy</u></em>

A command economy is an economic system where the government has control over the production and pricing of goods and services. Sometimes called a planned economy, in a command economy, the government decides which goods and services to produce, the production and distribution method, and the prices of goods and services. The government is the central planner.

  • The government has control over a command or planned economy.
  • In mixed economies, the government has some control, while the rest is up to supply and demand.
  • Command economies are characterized by large surpluses and shortages, monopolies, and prices set by the government.
  • Mixed economies are characterized by corporate profitability, the use of fiscal and monetary policies to stimulate growth, and the existence of a public and private sector. 《♡♡♡♡》

Explanation:

Hope it helps JOIN《Æ §QŮÅĐ》

8 0
2 years ago
A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation t
Kazeer [188]

Answer:

Question Aa. Alternative 1–$1,253,600

Alternative 2 –$1,230,300

Differential effect $ 23,300

b.The company should replace the old machine.

c Sunk cost $250,400

Question Ba. Alternative 1–$488,000

Alternative 2 –$466,000

Differential effect $ 22,000

b.The company should replace the old machine.

c Sunk cost $250,000

Explanation:

Question Aa. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $64,500 $64,500

Costs:

Purchase price 0 –$483,600 –$483,600

Variable production costs (8 years)–$1,253,600 –$811,200 $442,400

($156,700*8=$1,253,600)

($101,400*8=$811,200)

Income (Loss) –$1,253,600 –$1,230,300 $ 23,300

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formula

Sunk cost=$601,300-$350,900

Sunk cost=$250,400

Question Ba. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $231,000 $231,000

Costs:

Purchase price 0 –$545,000 –$545,000

Variable production costs (8 years)–$488,000 –$152,000 $336,000

($61,000*8=$488,000)

($19,000*8=$152,000)

Income (Loss) –$488,000 –$466,000 $ 22,000

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formua

Sunk cost=$600,000-$350,000

Sunk cost=$250,000

6 0
2 years ago
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