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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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3 years ago

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2 years ago

Wheeler Company issued 5,000 shares of its $5 par value common stock having a fair value of $25 per share and 7,500 shares of it

Arte-miy333 [17]

Answer:

Option (c) $141,818

Explanation:

Data provided in the question:

Number of common stocks issued = 5,000

Value of common stock = $25 par value

Number of preferred stocks issued = 7,500

Value of preferred stock = $20 par value

Lump sum value of total shares issued = $260,000

Now,

Fair value of the preferred stocks = 7,500 × $20

= $150,000

Fair value of the common stocks = 5,000 × $25

= $125,000

Thus,

Total value of the stocks issued = $150,000 + $125,000

= $275,000

Therefore,

Proceeds allocated to the preferred stock

= Lump sum value × [ Fair value of the preferred stocks ÷ value of the stocks ]

= $260,000 × [ $150,000 ÷ $275,000 ]

= $141,818.18 ≈ $141,818

Hence,

Option (c) $141,818

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2 years ago