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Ne4ueva [31]
3 years ago
8

Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally al

located overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:
Total Pooled
Category Cost Types of Costs Cost Driver
Unit $360,000 Indirect labor wages, supplies, factory utilities,
machine maintenance Machine hours
Batch 194,400 Materials handling, inventory storage, labor for
setups,packaging, labeling and shipping, Number of
scheduling production
orders
Product 105,600 Research and development Time spent
by research
department
Facility 300,000 Rent, general utilities, maintenance, facility
depreciation, admin. salaries Square
footage
Additional data for each of the product lines follow:
Commercial Home Miniature Total
Direct materials cost $25.00 /unit $15.00 /unit $12.00 /unit —
Direct labor cost $10.00 /hour $8.00 /hour $9.00 /hour —
Number of labor hours 6,000 12,000 2,000 20,000
Number of machine
hours 10,000 45,000 25,000 80,000
Number of production
orders 200 2,000 800 3,000
Research and
development time 10% 20% 70% 100%
Number of units 15,000 45,000 14,000 74,000
Square footage 20,000 50,000 30,000 100,000
Required:
1. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.
3. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.
Business
1 answer:
Ivenika [448]3 years ago
8 0
THAT LINK IS A VIRUS DO NOT GO TO IT ALL LINKS ARE VIRUSES and also if you go to “goggle” you should see a camera icon on the top right and take a picture of the question and maybe get the answer there
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Over [174]

Answer:

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

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Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

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3 years ago
A firm has three different production facilities, all of which produce the same product.. While reviewing the firm's cost data,
Valentin [98]

<u>Joshua is right because fixed costs are unavoidable but marginal costs are not.</u>

<u>Explanation</u>:

Decision making plays an important role while considering the development of the organization. The officials in the company should act smartly in making decisions during crucial situation.

<u>Marginal cost </u>is the cost added to the total cost while producing additional units. <u>Fixed cost </u>is the cost of the product that does not change with the increase or decrease in the quantity of the products.

In the above scenario, Jasmine and Joshua were discussing about the cost of the products that are produced in their manufacturing plants. They were discussing about the marginal cost and fixed cost.

6 0
2 years ago
A three-month HP put option with an exercise price of $60 sells for a premium of $8. The put is in the money only if the price o
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Answer:

less than $60 per share

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The relationship between the natural environment and business organizations can best be described as:_________
Marina86 [1]

The relationship between the natural environment and business organizations can best be described as <u>c. Interdependent.</u>

<h3>What is interdependence?</h3>

Interdependence describes a situation where two entities engage in exchanges for their continued sustenance.

Interdependence exists in many forms and between different organizations.

For instance, the natural environment of a business provides the resources that the organization requires for productivity and profitability.  

Similarly, the natural environment utilizes the products and services of business organizations for continued development.  Business organizations also protect the natural environment for their self-interest.

Thus, there is an interdependent relationship between the natural environment and the business organizations because one cannot exist sustainably without the other.

Learn more about the interdependence of the natural environment and business organization at brainly.com/question/23479668

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<h3>Question Completion with Answer Options:</h3>

a. A U-shape

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6 0
1 year ago
Suppose that $2500 is placed in a savings account at an annual rate of 5%, compounded quarterly. Assuming that no withdrawals ar
babymother [125]

Answer:

number of periods = 8 years.

Explanation:

We know,

Future Value = Present value × (1 + r)^{n}

Here,

Present value = PV = $2,500

Future value = FV = $3,500

Interest rate (Compounding) = 5% = 0.05

We have to determine how many years (Periods) it will take, n = ?

Putting the values into the above formula,

$3,500 = $2,500 × (1 + 0.05)^{n}

or, (1 + 0.05)^{n} = $3,500 ÷ $2,500

or, n log 1.05 = 1.4

or, n × 0.17609 = 1.4

or, n =  1.4 ÷ 0.17609

Therefore, number of years = 7.95 or 8 years.

5 0
3 years ago
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