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3 years ago

Paparo Corporation has provided the following data from its activity-based costing system:

Business

1 answer:

Anuta_ua [19.1K]3 years ago

6 0

Answer:

Unitary cost= $133.30

Explanation:

Giving the following information:

Activity Cost Pool - Total Cost - Total Activity

Assembly - $846,040 - 52,000 machine-hours

Processing orders - $64,056 - 1,700 orders

Inspection - $102,408 - 1,360 inspection-hours

First, we need to calculate the estimated manufacturing overhead rate for each activity cost pool:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 846,040/52,000= $16.27 per machine-hour

Processing= 64,056/1,700= $37.68 per order

Inspection= 102,408/1,360= $75.3 per inspection hour

Now, we can allocate overhead to product Q79Y:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Assembly=16.27*1,080= $17,571.6

Processing= 37.68*70= $2,637.6

Inspection= 75.3*20= $1,506

Total overhead= $21,715.2

Data concerning the company's product Q79Y appear below:

Annual unit production and sales 450

Direct materials cost $44.00 per unit

Direct labor cost $41.03 per unit

Finally, we calculate the unitary cost of product Q79Y:

Unitary cost= direct material + direct labor + allocated overhead

Unitary cost= 44 + 41.03 + (21,715.2/450)= $133.30

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1. Reynolds Corporation has the following cost and production information available for the 10,000 units they plan to produce th

serg [7]

Answer:

Explanation:

Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:

(20 + 30 + 8 + 13 + 12 + 7)

Desired return

20% on 1440000

288000

Per unit 288000/10000.

28.8

Markup on cost

Desired return per unit

28.8

Cost 90

28.8 /90 = 32% on cost

Target sale price

90+28.8

= 118.8

3 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t

Umnica [9.8K]

Answer:

Revenues=$188,000

Less: Variable Costs=$57,000

Less: Rentals=$37,000

Earnings before depreciation and tax=$94,000

Less: Depreciation =$17,000

Earnings before tax=$77,000

Less: Tax40%=$30,800

Net Income=$46,200

a) Dollars in minus dollars out

Dollars in = Revenues = $188,000

Dollars out = Variable cost + Rentals + Tax = $57,000 + $37,000 + $30,800 = $124,800

Operating cash flow = $188,000 - $124,800 = $63,200

b) Adjusted accounting profits

Operating cash flow = Net income + Depreciation = $46,200 + $17,000 = $63,200

c) Add back depreciation tax shield

Operating cash flow = Earnings before depreciation and tax x (1 - tax rate) + Depreciation tax shield

or, Operating cash flow = $94,000 x (1 - 0.40) + $17,000 x 40% = $63,200

Yes, all the results are same.

7 0

3 years ago

Define Moore’s Law and explain why its consequences are important to business professionals today. State how business profession

balandron [24]

Answer:

Explanation:

1)Moore's Law was created by Gordon Moore, the co-founder of Intel Corporation. Moore's Law states that the speed of a computer doubles every 18 months. Because of Moore's Law, the ratio of price to computer performance has fallen and the cost of storage, data processing, and communication have dropped to nearly zero and any routine skill can be outsourced to the lowest bidder.

2)The text defined job security as a "marketable skill and the courage to use it". To attain job security, business professionals should develop their non-routine cognitive skills such as collaboration, the ability to experiment, systems thinking, and abstract reasoning. This course in introductory MIS requires students to learn these four keys skills because every topic will require us to apply and practice these skills.

3)1. Course gives students necessary background to assess, evaluate, and apply emerging information technology to business

2. Course leads the path to job security by educating students in marketable skills

3. Numerous MIS jobs are available

7 0

4 years ago

At the beginning of the year, Sheridan Company had total assets of $845,000 and total liabilities of $600,000. (Treat each item

zlopas [31]

Answer:

A. Stockholders equity at the end is $493,000.

B. Closing total assets is $865,000.

C. Closing liability is $410,000.

Explanation:

A. Closing total assets:

= Opening assets + increase in assets

= $845,000 + $177,000

= $1,022,000

Closing liability:

= Opening liability - Decrease in liability

= $600,000 - $71,000

= $529,000

Closing equity:

= Closing assets - Closing liability

= $1,022,000 - $529,000

= $493,000

B. Opening equity:

= Opening assets - Opening liability

= $845,000 - $600,000

= $245,000

Closing assets:

= Opening assets + increase in liability - Decrease in equity

= $845,000 + $92,000 - $72,000

= $865,000

C. Closing liability:

= Opening liability - decrease in assets - increase in equity

= $600,000 - $90,000 - $100,000

= $410,000

6 0

3 years ago

The balance sheet of Sub America reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectivel

Rudiy27

Answer:

$42,500

Explanation:

Given that,

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = (Beginning total assets + Ending total assets) ÷ 2

= ($400,000 + $450,000) ÷ 2

= $425,000

Return on assets = 10%

Net Income ÷ Average total assets = 0.1

Net Income ÷ $425,000 = 0.1

Net Income = 0.1 × $425,000

= $42,500

Therefore, the Sub America's net income for the year is $42,500.

6 0

3 years ago