1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yi
Leni [432]

Answer:

5.37%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the company’s after tax return on preferred by using following formula:-

Company’s After Tax Return = Before Tax Dividend Yield Rate on Preferred Stock × [1 - (1 - Dividend Exclusive) × (Tax Rate)]

= 6% × [1 - (1 - 70%) × (35%)]

= 0.06 × [1 - (1 - 0.70) × (0.35)]

= 0.06 × [1 - (0.30) × (0.35)]

= 0.06 × (1 - 0.105)

= 0.0537

= 5.37%

We simply applied the above formula to determine the company after tax return

8 0
3 years ago
The three-letter code that summarizes your three strongest career types is called your
lorasvet [3.4K]
I think it's called the Holland code.
8 0
3 years ago
Read 2 more answers
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.
natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock Price =\frac{D1}{r-g}

If r is made subject of formula;  r=\frac{D1}{Price}+g = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%                                      

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2= \frac{D3}{ke-g}

Price of the stock today = \frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}=109.57

Therefore dividend yield =\frac[D1}{Price} = \frac{4.2(1.2)}{109.57}=4.6%

5 0
3 years ago
In business, it is customary to praise individualistic competition and denigrate collective bargaining in all forms. However, in
GuDViN [60]

Answer:

What lessons are we to learn from this?

The Hanseatic league, just like the Northern Italian City-States of the Late Middle Ages, are early examples of capitalism: they represent proto-capitalism.

In the cities that belonged to the Hanseatic League, the work of merchants was promoted, and capital accumulation and the profit motive began to develop. However, this does not meant that cooperation was out of place. The merchants cooperated voluntarily because they could get more working in association.

Are there prospects for more merchant leagues in an increasingly globalized economy?

There will always be the prospect for more merchant leagues, because people naturally cooperate if it is in the benefit of all the parties.

In fact, trade unions and economic unions could be seen as a form of merchant league, that are created by states instead of individual merchants.

3 0
3 years ago
answer the two questions relating to demand and the law of demand. a. which can cause a shift in the demand curve? a change in t
fredd [130]

One thing that can cause a shift in the demand curve is a change in one of the determinants of demand.

The law of demand can be shown as Pat wants to buy more candy bars at $1 than at $2

<h3>What does the law of demand say?</h3><h3 />

The law of demand posits that people will demand more of a good when the price is lower as opposed to when it is higher. This is why Pat will want to buy more candy bars when the price is lower at $1 as opposed to $2.

The demand curve will shift when there is a change in one of the determinant of demand such as the income of people and the price of substitutes.

Find out more on the law of demand at brainly.com/question/24500422

#SPJ1

7 0
2 years ago
Other questions:
  • Suppose that all 75 employees of a company received a raise of $150 per month? How would this affect the mean salary of all empl
    15·1 answer
  • A specific group of related businesses in known as a/an _________.
    5·1 answer
  • True or False: Banks are required to make electronically deposited funds available on the same day of the deposit
    15·2 answers
  • Over a decade ago, survivor premiered as a nighttime reality tv show during the summer season when tv ratings are normally low a
    6·1 answer
  • A group of elderly men, whose government disability benefits are the sole source of income, is approached to consider an experim
    5·1 answer
  • Greg, a project manager in your company, is falling behind on the project schedule. He has elected to crash the project. What is
    7·1 answer
  • Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank em
    11·1 answer
  • What do economists mean by the demand for​ money? A. It is the amount of moneylong dashcurrency and checking account depositslon
    15·2 answers
  • Marigold Inc. reported total assets of $2391000 and net income of $318000 for the current year. Marigold determined that invento
    8·1 answer
  • The activities needed to operate a business can be divided into a number of
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!