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enot [183]
2 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]2 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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Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets an
Drupady [299]

Answer:

Company A and Company B

Calculation of Goodwill on Acquisition:

= $212,433

Explanation:

a) Current market value of:

 Tangible physical assets = $1,234,567

  Intangible asset =                 $125,000

Total assets' value =            $1,359,567

less Liabilities:

  Operating =  $160,000

  Financial =     600,000      ($760,000)

Net value of assets =             $599,567

Purchase Price (Company B) $812,000

Goodwill                                  $212,433

b) Company A acquired Goodwill when it bought over Company B.  This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.

3 0
3 years ago
A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Man
Alina [70]

Answer: barriers to entry

Explanation:

Barriers to entry are also known as economic barrier to entry. They are hindrances which makes entering a particular market difficult by new entrant.

Barrier to entry are fixed cost that must be incur by a new company irrespective of their sales or production level, this cost are incur by new entrant which those who have been in the industry before do not have to incur.

Few common barriers to entry includes technology, government regulation and policy, economies of scale, etc.

4 0
3 years ago
Jones Corp. reported current assets of $196,000 and current liabilities of $138,500 on its most recent balance sheet. The curren
myrzilka [38]

Answer:

0.74

Explanation:

Jones corporation reported a current assets of $196,000

The current liabilities is $138,500

The current assets consists of $61,000 cash , account receivable= $42,100, inventory= $92,900

Therefore the quick ratio can be calculated as follows

= cash + account receivables

= $61,000 + $42,100

= $103,100

$103,100/$138,500

= 0.74

Hence the acid test(quick ) ratio is 0.74

4 0
3 years ago
When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional managemen
Ksivusya [100]

Answer:

When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional management because he or she doesn't have access to international investments on his or her own. b. it will have no impact on either the risk or the return of his or her portfolio. c. he or she will increase his or her expected return but must also take on more risk. d. he or she can reduce the risk of his or her portfolio. e. it will raise his or her risk relative to the risk he or she would face just holding U.S. stocks.

3 0
2 years ago
The entry to record the use of direct materials in production would include a A. credit to Finished Goods Inventory. B. debit to
earnstyle [38]

Answer:  

B. debit to WIP inventory

Explanation:

The journal entry to record the usage of direct material in production is

Work in Process Inventory                                  Dr.

     To Raw Material Inventory

(Raw materials consumed recorded)

Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.

Work in process, like raw material is an inventory account i.e an asset. A debit increases their balance whereas a credit reduces it.

Here, raw materials i.e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.

3 0
3 years ago
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