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enot [183]
3 years ago
7

Latiker, Inc., manufactures and sells two products: Product Y9 and Product W0. Data concerning the expected production of each p

roduct and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product Y9 100 8 800
Product W0 100 10 1,000
Total direct labor-hours 1,800

The direct labor rate is $15.40 per DLH. The direct materials cost per unit for each product is given below:

Direct Materials Cost per Unit
Product Y9 $253.00
Product W0 $278.80

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:



Activity Cost Pools Activity Measures Overhead Cost Product Y9 Product W0 Total
Labor-related DLHs $61,488 800 1,000 1,800
Machine setups setups 50,687 400 300 700
Order size MHs 155,754 5,000 5,200 10,200
$267,929

The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:

a. $31.15 per setup
b. $26.27 per setup
c. $29.95 per setup
d. $72.41 per setup
Business
1 answer:
SSSSS [86.1K]3 years ago
5 0

Answer:

d. $72.41 per setup

Explanation:

The computation of the activity rate for the machine setup activity pool is as follows;

The Activity rate for the Machine setups activity cost pool is

= Estimated overhead cost ÷ Total machine setup

= $50,687 ÷ 700

= $72.41 per setups

Hence, the activity rate for the machine setup activity pool is $72.41 per setup

Therefore the option d is correct

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professor190 [17]

Answer: Increased profit as opposed to making them internally.

Explanation:

Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.

Buy decision

Unit price= $34

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Total cost= $34*19900=$676,600

Make decision

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Direct materials 178,000

Direct Labor. 380,000

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Total $922,000

Unit price for make=922000/19900

Unit price=$46.33

Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).

6 0
3 years ago
Which of the following best describes the difference between a convertible bond and a warrant? Convertible bonds give the invest
levacccp [35]

Answer: Statement A

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Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.

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Thus, from the above explanation we can conclude that statement A is correct.

4 0
3 years ago
Why would you use a chart AND data in Excel?
harina [27]

Answer:

a b d

Explanation:

:)

3 0
3 years ago
Each week, radio reaches about what percentage of all adults and teenagers? 94 percent, 91 percent
swat32

If each week radio reaches 94 percent of adults and 91 percent of teenagers, to get the average percentage it gets every week- with adults and teenagers, we have to add the two values and then divide them by two. So 94 + 91 is equal to 185 divided by 2 is 92.5% or 93%.

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3 years ago
I'm bored who wants to talk for a bit? About school or whatever
mariarad [96]

Answer:

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Explanation:

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