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NISA [10]
3 years ago
11

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cos

t and activity for each of its three activity cost pools: Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing
Business
1 answer:
puteri [66]3 years ago
5 0

Answer: $3 per unit

Explanation:

Here's the complete question:

company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Activity Cost Pool Budgeted Activity

Budgeted Cost. Product A Product B

Activity 1 $ 87,000. 3,000. 2,800

Activity 2 $ 62,000 4,500 5,500

Activity 3 $ 93,000 2,500 5,250

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

Activity 1 (87000/5800 × 3000) = 45000

Activity 2 (62000/10000 × 4500) = 27900

Activity 3 (93000/7750 × 2500) = 30000

Total overhead cost = 102900

Since Unit = 34300, the overhead cost per unit will then be:

= $102900 / 34300

= $3 per unit

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"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

6 0
3 years ago
Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the futur
inysia [295]

Answer:

$4,000

Explanation:

P- percent

r-rate

t-time

P: 10000

R:8 but u have to move it two spots so it would be 0.08

T:5 years

10,000(0.08) (5) = 4,000

$4,000

That's how I do it. I hope it helps!

5 0
2 years ago
On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truc
Ganezh [65]

Answer:

D.Gain, $5,000.

Explanation:

Truck Value =  $48,000

Annual depreciation =   ( $48,000 -   $8,000) / 8 = $40,000 / 8= $5,000

First year (2013) = $40,000 - $5,000 =  $35,000

Second year (2014) = $35,000 - $5,000 =  $30,000

Third year (2015)= $30,000 - $5,000 =  $25,000

Gain  = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000

8 0
3 years ago
The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs. Group of answ
Levart [38]

Answer:

True.

Explanation:

Indirect cost are cost incurred in the production process that cannot be traced directly back to the product, but contributes to the production process in general. For example the salary of wages is not a cost that is directly included in the product itself, but workers are needed to perform tasks and operate the machines that produce the product.

Direct cost are traceable directly to the product and include raw material.

So overhead, facilities and resource opportunity cost are all indirect cost in producing the product.

8 0
3 years ago
Flint corporation reported net income of 391320 in 2017 and had 206000 shares of common stock outstanding throughout the year. A
irakobra [83]

Answer:

$1.23

Explanation:

The computation of the diluted earnings per share is shown below:

Diluted earning per share = Net income ÷ weighted number of common stock outstanding

where,

Net income is $391,320          

Weighted average number of outstanding shares equal to

= 206,000 shares  + 114,000 shares

= 320,000 shares

The 114,000 shares is

= 570,000 ÷ $15 × $12

= 456,000

Now 570,000 - 456,000 = 114,000 shares

So, the diluted earning per share

= $391,230 ÷ 320,000 shares

= $1.23

8 0
3 years ago
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