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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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Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of ope
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Answer:

Darby Company

The amount of interest payable at December 31, Year 1 is:

$76.67

Explanation:

a) Data and Calculations:

Cash Revenue = $1,300

Bank Note Payable = $2,300

Interest rate on Bank Note = 10%

Issue date of bank note = September 1, Year 1

Term of bank note = 1 year

Amount of interest payable on December 31, Year 1:

= $2,300 * 10% * 4/12 = $76.67

b) The amount of interest payable on the loan totals $230 ($2,300 * 10%).  However for Year 1, the interest payable is reduced to 4 months (September 1 to December 31, Year 1), amounting to $76.67.  This implies that the remaining interest ($153.33) will be payable in the period between January 1 and August 31 in Year 2.  In accordance with the accrual and matching principles of generally accepted accounting principles, interest expense must be accrued to the period when the expense is incurred and matched to the revenue it has generated.

4 0
3 years ago
1. Does the selected business have differentiated products or services? If so, what is the basis for this differentiation from t
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Answer: You can know if you have differentiated products if we have a quality that stands out from the other competitors.

For example: Our service time is less than the competition and we also give gifts to our buyers, things that the competition does not do.

The basis for differentiation is to look for that quality that the competition does not have and that adds value to what we are doing.

8 0
3 years ago
Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 55,870 Direct la
liq [111]

Answer:

 $16.66

Explanation:

Data provided

Direct material = $55,870

Direct labor hour = 475

Wage rate = $11

Machine hour = $556

Number of units = 4,100

Overhead rate = $13

The preparation of job sheet is shown below:-

Direct Material                $55,870

Add: Direct Labor           $5,225

( 475 × $11)

Overhead                         $7,228

($556 × $13)

Total                                  $68,323                      

Number of units                4,100

Cost per unit                      $16.66

($68,323 ÷ 4,100)

8 0
3 years ago
The treasurer of Systems Company has accumulated the following budget information for the first two months of the coming year:Ma
expeople1 [14]

Answer:

March $6,000

April $134,400

Explanation:

Preparation of a monthly cash budget for March and April

SYSTEMS COMPANY CASH BUDGET FOR MARCH AND APRIL

March April

Estimated cash receipts from:

Cash sales $157,500 $182,000

($450,000*35%=$157,500)

($520,000*35%=$182,000)

Collections of accounts receivable

$285,000 $328,900

[$51,000+($450,000*65%*80%)=$285,000]

[($450,000*65%*20)+($520,000*65%*80%)=$328,900]

Total cash receipts $442,500 $510,900

($157,500+$285,000=$442,500)

($182,000+$328,900=$510,900)

Estimated cash payments for:

Manufacturing costs $174,500 $305,000

[$102,000+($290,000*1/4)=$174,500]

[($290,000*3/4)+($350,000*1/4=$305,000)]

Selling and administrative expenses $37,000 $37,500

[($41,400-$6,400)/2 + $19,500 $37,000]

[($46,400-$6,400)/2 +$19,500$37,500]

Capital additions $250,000 $0

Income taxes $0 $40,000

Total cash payments $461,500 $382,500

Cash increase (decrease) -$19,000 $128,400

($442,500-$461,500=-$19,000)

($510,900-$382,500=$128,400)

Cash balance at beginning of month $45,000 $26,000

Cash balance at end of month $26,000 $154,400

(-$19,000+$45,000=$26,000)

($128,400+$26,000=$154,400)

Minimum cash balance $20,000 $20,000

Excess (deficiency) $6,000 $134,400

($26,000-$20,000=$6,000)

($154,400-$20,000=$134,400)

Therefore The monthly cash budget for March and April will be :

March $6,000

April $134,400

7 0
3 years ago
Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline
love history [14]

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

= $1,550,000

therefore, the overall profit is  $1,550,000

7 0
3 years ago
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