Answer:
See below
Explanation:
Activity rate = Overhead costs/Estimated driver
Customer service : 175 per serv. req.
Project bidding : 400 per bid
Engineering support : 750 per design change
Activity costs allocated = Activity rate × Driver consumed
Activity costs
Gough industries. 39,800
Been inc. 47,150
The Martin group. 139,300
Artic Air inc.
Customer profitability report for the year ended, December 31
Gough industries Been inc. Martin Grou
Revenues
1,800,000 960,000 240,000
Cost of goods sold
840,000 448,000 112,000
Gross profit
960,000 512,000 128,000
Selling and administrative activities:
Customer service
6,300 4,900 20,300
Project bidding
20,000 16,000 38,000
Engineering support
13,500 26,250 81,000
Total selling and administrative support
39,800 47,150 139,300
Operating income(loss)
920,200 464,850 (11,300)
Answer:
Feline Watch Company should budget $15,000 overhead costs.
Explanation:
5 labor hours per unit of watch at $7 per labor hour
Variable Overheads $4 per labor hour
Total Variable overheads for 500 watches
$4 per labor hour * 5 labor hours per watch * 500 watches = $10,000
Fixed Overhead = $5,000
Total Overhead = $15,000
Land improvements are capitalized separately from Land because land improvements have only a limited useful life.
Land is a special fixed asset which means that:
- It is purchased for long term use
- It is not depreciated because it lasts forever
Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.
In conclusion, land improvements are capitalized separately from land because they have a limited useful life.
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The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.
<h3>
What is a risk?</h3>
Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.
Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.
Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.
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Answer: $13500
Explanation:
The triple net lease refers to a lease agreement whereby the tenant pays all the property expenses such as property taxes, building insurance, utilities, repairs and maintenance.
Therefore, based on the question given, the expenses to be paid will be:
Property taxes = $5,000
Add: Utilities = $7,000
Add: Repairs & Maintenance = $1,500
Total = $13500
