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4 years ago

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

Business

1 answer:

Anuta_ua [19.1K]4 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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Eurenasia is a country that has frequently been assigned low macro-assessment ratings of country risk in the recent past due to

castortr0y [4]

Answer:

Eurenasia is a country that has frequently been assigned low macro-assessment ratings of country risk in the recent past due to its tendency to war with neighboring nations. MNC A is considering the establishment of a subsidiary to manufacture personal computers, while MNC B is considering the establishment of a subsidiary to manufacture tanks. Which of the two MNCs is likely to be less affected by the low macro-assessment?

Option B is correct - MNC B will be less affected by low macro-assessment.

Explanation:

Due to the tendency of Eurenasi to war with neighboring countries, the manufacture of tanks by MNC B will be less affected by low macro-assessment because, during war periods, tank sales will increase. Whereas, Low macro assessment will affect MNC A because it selling computers will be affected by war.

Therefore, Option B is correct - MNC B will be less affected by low macro-assessment.

3 0

3 years ago

The Maurer Company has a long-term debt ratio of .31 and a current ratio of 1.70. Current liabilities are $870, sales are $6,290

Serhud [2]

Answer:

$ 3,912,531 TOTAL NONCURRENT ASSETS

Explanation:

BALANCE

$ 1,479,000 TOTAL CURRENT ASSETS

$ 3,912,531 TOTAL NONCURRENT ASSETS

$ 5,391,531 TOTAL ASSETS

$ 870,000 TOTAL CURRENT LIABILITIES

$ 1,671,375 TOTAL NONCURRENT LIABILITIES

$ 2,541,375 TOTAL LIABILITIES

$ 2,850,156 TOTAL SHAREHOLDERS SEQUITY

$ 5,391,531 TOTAL EQUITY & LIABILITIES

CURRENT RATIO 1,70

$ 1.479,000 TOTAL CURRENT ASSETS

============

$ 870,000 TOTAL CURRENT LIABILITIES

ROE 19,2%

$547,230 Net Income = Sales $6,290,000 * 8,7%

=====================

$2,850,156 TOTAL SHAREHOLDERS SEQUITY

DEBT RATIO 0,31

$ 5,391,531 TOTAL ASSETS

=============

$ 1,671,375 TOTAL NONCURRENT LIABILITIES

3 0

3 years ago

Lashondra is the owner/operator of an interior design firm. Last year she earned $400,000 in total revenue. Her explicit costs w

padilas [110]

Answer:

b. $70,000

Explanation:

Economic profit is the difference between the total revenue received by a business and the total implicit and explicit costs of a firm.

Economic profit = Total revenue - (Implicit costs + Explicit costs)

Economic profit = $400,000 - $200,000 - $130,000 = $70000

Therefore Lashondra's economic profit is equal to $70000.

4 0

4 years ago

Read 2 more answers

When a firm uses the LIFO inventory cost flow assumption: ____________

o-na [289]

Answer:

Answer is D. better matching of revenue and expense is achieved than under FIFO.

Explanation:

The inventory cost flow assumption describes the flow of product cost: from the inventory and to cost of goods sold. When a firm uses the LIFO inventory cost flow assumption: better matching of revenue and expense is achieved than under FIFO.

5 0

3 years ago

Cannon Sporting Goods is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities

Ratling [72]

Answer:

a.Building (Dr.) $145

Equipment (Dr.) $260

Cash (Cr.) $404

Long-term note (Cr.) $30

b. Cash (Dr.) $340

Common Stock (Cr.) $180

Share Premium (Cr.) $160

c.Retained Earnings (Dr.) $145

Dividend Payable (Cr.) $145

d.Short-term investment(Dr.) $7716

Cash (Cr.) $7716

e. No Effect on accounting equation or Canon Sporting Goods Accounts.

f. Cash (Dr.) $4313

Short-term Investment (Cr.) $4313

Explanation:

a. Non-current Asset is increase by $434 and Current Assets cash account decreased by $404, Non-current liability is increased by $30.

b. Cash received debited which increases current asset by $340 and common stock account increased by $180, Share premium account increased by $160 under the stockholder account.

c. Dividends are paid from retained earnings on the equity account of the balance sheet. No effect on the assets. Retained earnings are decreased (stockholder account) and dividend payable is increased (current liability account).

d. Both are current asset accounts. Short-term investment account is increased and cash is decreased by $7716.

e. There will be no effect on the accounts of Canon Sporting Goods as the transaction occurred between two outside investors.

f. Both are current asset accounts. Cash is increased and short term investment is decreased by the $4313.

6 0

3 years ago