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
Shtirlitz [24]
3 years ago
9

Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($60,500) have been divided into three c

ost pools that use the following activity drivers:
Number of Labor
Product Number of Orders Transactions Labor Hours
I 15 50 500
II 10 150 2,000
Cost per pool $12,500 $8,000 $40,000
If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
a. $8,000.
b. $58,000.
c. $9,600.
d. $32,000.
Business
1 answer:
Mila [183]3 years ago
7 0

Answer:

a. $8,000.

Explanation:

The computation of the amount of overhead cost assigned to the product I is shown below:

= $40,000 ÷ 2,500 × $500

= $8,000

Hence, the amount of overhead cost assigned to the product I is $8,000

Therefore the correct option is a.

You might be interested in
Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 ye
Len [333]

Missing Question Data:

The question was missing the total amount of loan taken. I have found the question online and the missing data is added below.

Explanation:

DATA:

Car Loan = $15000

Interest Rate (annual) = 7% = 0.07

Interest Rate (monthly) = 0.07/12 = 0.00583

Loan Life = 3 years

Period (monthly) = 3*12 = 36

Investment Rate (annual) = 4% = 0.04

Investment Rate (monthly) = 0.04/12 = 0.00333

Salvage value after 3 years (PV of Salvage Value) = $5000

Lease Down Payment = $3000

Lease Monthly Payment = $350

<h3>First, we consider the option of Buying on Loan</h3>

Car Loan - Salvage Value(PV) = 15000-5000

Car Loan - Salvage Value(PV) = $10000

<h3>For the option of Leasing the Car</h3>

Sum of monthly lease payments for the total period will be,

Sum of Installments (FV) = 350 * 12 = $12600

We know that,

PV\;=\;\frac{FV}{(1\;+\;r)^{n}}\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;(here\;n\;=\;4\%\;=\;0.00333)

Sum of Installments (PV) = \frac{12600}{(1\;+\;0.00333)^{36}}

Sum of Installments (PV) = $11178.76

Total Lease Payment = Down Payment + Sum of Installments (PV)

Total Lease Payment = $3000 + $ 11178.76

Total Lease Payment = $14178.76

As we can see that total investment for Loan option is lower than that of Lease option, hence taking Loan is the best choice.

3 0
3 years ago
Freeman​ Motors, a motorcycle​ manufacturer, had the following contingencies. Determine the appropriate accounting treatment for
mrs_skeptik [129]

Answer:

a. Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit.​ Freeman's attorneys estimate the potential loss will be​ $4,500,000.

  • Describe the situation in a note to the financial statements.

Since the event is possible but not likely, it should be disclosed in the footnotes of the financial statements.

b. Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous.

  • Do not disclose.

Since this is a frivolous lawsuit, there is no need to disclose it.

c. Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be​ $75,000.

  • Record an expense and a liability based on estimated amounts.

Since the negative outcome is probable and you were able to quantify your losses, you must record the expense for $75,000 and include the amount as a current liability.

6 0
3 years ago
A local transit authority charges​ $1 for a bus ride. An economics study suggests that in the price range from​ $0.50 to​ $1.50,
Sunny_sXe [5.5K]

Answer:

To increase its revenue, transit authority should lower the fare.

Explanation:

The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.

A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.

5 0
3 years ago
Black systems sold and delivered modems to white computers for $330,000 to be paid by white in three equal installments over the
patriot [66]
Why are they giving $110,000 more?
5 0
3 years ago
The payments a business makes for investing in capital expenses are known as Question 3 options: A) profits B) interest C) wages
rewona [7]
The answer for this question is A.
4 0
3 years ago
Other questions:
  • Max purchased an antique watch from a local store for $500. As soon as Max stepped outside the shop with the watch, a man approa
    6·1 answer
  • A computer program is an example of _____.
    7·1 answer
  • If the interest is compounded semiannually, look up on the chart half the rate and twice the years. If the interest is compounde
    9·1 answer
  • A CPA firm should establish procedures for conducting and supervising work at all organizational levels to provide reasonable as
    10·1 answer
  • To assess the current value of a lump-sum retirement benefit that will be received in 10 years, use the __________ calculation.
    8·1 answer
  • On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,529, Metlock, Inc. estimates that 7% of
    13·2 answers
  • The Capitalpoor Company is considering purchasing business machine for $100,000. An alternative is to rent it for $35,000 at the
    8·1 answer
  • Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe
    15·1 answer
  • Which of the following best helps a company move toward achieving its
    12·1 answer
  • You have set up an appointment for an in-home sales presentation with mrs. Fernandez, who expressed interest in the medicare pla
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!