1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lilit [14]
3 years ago
15

Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on

direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $180,000 9,000MHs
Machine setups Number of setups $125,000 250 setups
Product design Number of products $44,000 2 products
Order size Direct labor-hours $260,000 10,000 DLHs

Activity Measure Product F82D Product T05P
Machine-hours 5,000 4,000
Number of setups 160 90
Number of products 1 1
Direct labor-hours 4,000 6,000

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T05P?

a. $156,000
b. $303,000
c. $147,000
d. $304,500
Business
1 answer:
ipn [44]3 years ago
6 0

Answer:

b. $303,000

Explanation:

The activity rate

1. Machining = $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{180000}{9000}$

                   = $ 20 per machine hour

2. Machine set up =   $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{125000}{250}$

                   = $ 500 per set up

3. Product design =  $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{44000}{2}$

                   = $ 22000 per product

4. Order size =  $\frac{\text{total cost}}{\text{total activity}}$

                    $=\frac{260000}{10000}$

                   = $ 26 per direct labor hour

Now the ABC cost (Product T05P)

1. Machining  = $\text{machine hours} \times \text{activity rate}$

                     = 4000 x 20

                     = $ 80,000

2. Machine set ups =  $\text{no. of set ups} \times \text{activity rate}$

                     = 90 x 500

                     = $ 45,000

3. Product design =  $\text{no. of products} \times \text{activity rate}$

                     = 1 x 22000

                     = $ 22,000

4. Order size =  $\text{direct labor hours} \times \text{activity rate}$

                     = 6000 x 26

                     = $ 156,000

Therefore, the total manufacturing overhead cost assigned to product T05P = 80000 + 45000 + 22000 + 156000

= $ 303,000

You might be interested in
Curry Seasonings has a patented technology for finely grinding spices while maintaining flavor. This has allowed the company to
VLD [36.1K]

Answer:

<em>Run a recoverability test and then a fair value test.</em>

Explanation:

Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.

<em>Measuring the magnitude of the loss requires two steps:</em>

  • Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
  • Measure the cost of damage by measuring the difference between the book value and the asset's market value.
4 0
3 years ago
Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Bud
lesya [120]

Answer:

Total sales variance    $87,340   Favorable

See report below

Explanation:

The sales budget for the month of June would like as follows:

Budgeted Sales

Product                 units        Price     Total($)

A                        40,000       $7          280,000

B                         39,000    $9            351,000

Actual sales

Product                 units        Price     Total($)

A                        39,000       $7.10         276,900

B                        49,600       $8.90         441440

Sales Budget Report for the month of June 2019

                                Budget           Actual           Variance ($)

A                        280,000                  276,900         3,100      Unfavorable

B                        351,000                   441,440            <u>90,440  </u>favorable

   Total sales variance                                          <u>  87,340   Favorable</u>

5 0
2 years ago
exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a check
algol13

Answer:

$22,789

Explanation:

One of the uses of the Bank Reconciliation Statement is to check the accuracy of the Cash Balance.

The Balance on the Bank Statement and that of the Cash Book in the Ledgers should always agree.

Bank Reconciliation Statement as a July 31

Balance as per Bank Statement                      $22,364

Add Lodgments not yet credited                       $1,745

Less unpresented checks                                 ($1,320)

Balance as per Cash Book                               $22,789

Therefore,

The balance of cash using a bank reconciliation is $22,789

5 0
3 years ago
The objectives of U.S. monetary policy are to achieve​ ______.
SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth.  If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0
3 years ago
Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute
natita [175]

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

7 0
2 years ago
Other questions:
  • Ruby wants to change the size of the margins in her document. Which of the following is a command she might use to do so in her
    13·2 answers
  • Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013.
    14·1 answer
  • Choose the answer below that is consistent with the following data: Assume that velocity is 5, the quantity of output is 1,000 i
    12·1 answer
  • When Damon filled out a survey for the sporting goods store he favors, it asked him to respond to items that asked for his agree
    7·1 answer
  • Matt Christopher is a 25 year old mechanical engineer earning 60,000 dollars next year. He expects his salary to increase 5% yea
    11·1 answer
  • What happens when the government finances a job creation project through taxes and borrowing?
    9·1 answer
  • Orion company sells several products. information of average revenue and costs is as follows: selling price per unit $23 variabl
    8·1 answer
  • A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,0
    12·1 answer
  • Which of the following should you NOT do to protect yourself from exposure to bloodborne pathogens?
    11·1 answer
  • Nice Watches inc has a planning process where the executive level of management, works with department and individual managers t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!