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4 years ago

Which is NOT true of the various methods of allocating service department costs?

Business

1 answer:

alexandr1967 [171]4 years ago

4 0

Answer:

The statement which is NOT true of the various methods of allocating service department costs is:

b. The choice of method affects the optimal allocation of resources

Explanation:

The allocation method used by an organization does not affect whether the organization's resources are allocated optimally or not. After all, what is at stake is not the allocation of resources, but the allocation of consumed resources. An organization is free in making its choice of method. The basis for choosing an allocation method is to ensure that costs are allocated optimally and not resources.

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Incorrect answer icon Your answer is incorrect. The total estimated manufacturing overhead of $264,000 was comprised of $168,000

AlexFokin [52]

Under activity-based costing (ABC), the amounts of materials handling costs assigned to the following units are:

(a) One mobile safe $210 per unit .

(b) One walk-in safe $168 per unit.

<h3>What is activity-based costing?</h3>

Activity-based costing is the costing method that assigns overhead and indirect costs to products and services based on consumption of activities.

<h3>Data and Calculations:</h3>

Materials handling costs = $168,000

Purchasing activity costs = $96,000

Total estimated manufacturing overhead = $264,000 ($168,000 + $96,000)

The following figures are assumed:

<u>Activities</u>:

Materials handling cost $168,000

Total hours of materials handling = 40,000 hours

Activity rate = $4.20 ($168,000/40,000) per hour

Purchasing activity cost = $96,000

Number of units purchased = 30,000

Activity rate = $3.20 ($96,000/30,000)

<u>Consumption of activities</u>:

Material Handling hours Number of Units used

Mobile safe per unit 50 hours 3 units

Walk-in safe per unit 40 hours 2 units

<u>Overhead assigned</u>:

Material Handling

Mobile safe per unit 50 hours x $4.20 = $210

Walk-in safe per unit 40 hours x $4.20 = $168

Thus, under activity-based costing (ABC), the amounts of materials handling costs assigned to the following units are as indicated above.

Learn more activity-based costing at brainly.com/question/6654166

5 0

3 years ago

On October 1, 2018, Swifty Company places a new asset into service. The cost of the asset is $125000 with an estimated 5-year li

Novosadov [1.4K]

Answer:

The book value of the plant asset on the December 31, 2018 is $75,000.

Explanation:

<u>Determine the depreciable cost,</u>

The depreciable cost = Acquisition cost - Salvage value.

The depreciable cost = 125,000 - 30,500.

The depreciable cost = $94,500.

<u>Determine the annual depreciation expense,</u>

The annual depreciation expense = depreciable cost/useful life

The annual depreciation expense = 94,000/5

The annual depreciation expense = $18,900.

<u>Find the % rate of depreciation .</u>

The % rate of depreciation = (18,900/94,500) × 100.

% rate of depreciation = 20%

Since it is the double-declining-balance method of depreciation we multiply the % rate by 2 = 20% × 2 = 40%

<u>Applying the rate to the carrying value of the asset to obtain current year's depreciation expense.</u>

Current year's depreciation expense = Carrying value of the asset × the depreciation rate %.

Current year's depreciation expense = 125,000 × 40%.

Current year's depreciation expense = $75,000

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4 0

3 years ago

Which of the following is true about presentation methods for providing training? Audiovisual techniques are most effective when

otez555 [7]

Answer:

The best answer for this question would be: Webcasting involves classroom instructions that are provided online through live broadcasts.

Explanation:

The other answers are incorrect because:

Audiovisual techniques are most effective when combined with other training strategies to provide context and opportunity for the learners to practice what they have learned.

Mobile technologies do not include simulation, case, studies, and on-the-job training.

The best people to be trained through teleconferencing would be those who are working from an office position, though not located in the same area as the training provider.

Classroom instruction is still a popular training method, because it's relative ease of access compared to other methods.

3 0

3 years ago

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you

Olenka [21]

Answer:

1. if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

2.If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

3. if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

The income elasticity is given as 3 , it means that demand is elastic. So if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls.

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitutes goods.

Substitute goods are goods that can be used in place of another good.

If the cross price elasticitiy is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Because the cross price elasticity between Chevrolet Camaro and Ford Mustangs is positive, it means they are subsituite goods. So, if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

Because the cross price elasticity of demand between gasoline and Ford Mustangs are negative, they are complementary goods.

If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

8 0

3 years ago

Chicago Company reported the following information at the end of the current year

Nookie1986 [14]

Answer:

37,000 common stock outstanding

preferred stock dividends = $82,000 x 10% = $8,200

Case A The preferred stock is noncumulative, the total amount of dividends is $32.000

dividends distributed to preferred stockholders = $8,200
dividends distributed to common stockholders = $32,000 - $8,200 = $23,800

since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.

Case B The preferred stock is cumulative, the total amount of dividends is $24,600

dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
dividends distributed to common stockholders = $0

Case C The pretend stock is cumulative, the total amount of all dividends is $90,200

dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
dividends distributed to common stockholders = $90,200 - $24,600 = $65,600

5 0

3 years ago