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dezoksy [38]
3 years ago
10

Use this information for ABC Corporation to answer the question that follow. ABC Corporation has three service departments with

the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows: Micro Macro Super Direct revenues $700,000 $850,000 $650,000 Direct operating expenses $50,000 $70,000 $100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125
Business
1 answer:
serg [7]3 years ago
7 0

Answer: See explanation

Explanation:

The question is:

1. What is the service department charge rate for Graphics Production?

a.$10.00

b.$2.00

c.$0.50

d.$6.66

The service department charge for Graphics Production will be calculated by dividing the cost of graphic production by the total number of copies that are made. This will be:

= $200000/(20000 + 30000 + 50000)

= $200,000 / 100,000

= $2 per copy

2. How much service department cost will be allocated to the Micro Division?

a.$200,000

b.$145,000

c.$345,000

d.$60,000

The service department cost that is allocated to the Micro Division will be calculated as:

= [20000 x ($200000/100000)] + [700 x ($500000/2000)] + [130 x ($400000/400)]

= (20000 × 2) + (700 × 250) + (130 × 1000)

= $40000 + $175000 + $130000

= $345000

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patriot [66]

Answer:

The cost of goods sold is $68970

Explanation:

The cost of goods sold is the cost of inventory that a company sells in a partcular period.

The cost of goods sold can be calculated as,

Cost of Goods sold = Opening inventory + Purchases - Closing Inventory

Cost of Goods Sold = 16500 + 71500 - 19030  = $68970

4 0
3 years ago
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contr
Anna11 [10]

Answer:

A. $36.55

B. 5116 units

C. 7114 units

Explanation:

Requirement 1: Weighted average contribution margin per unit

Lens A = $38 x 25% = $9.5

Lens B = $30 x 40% = $12

Lens C = $43 x 35% = $15.05

Total Contribution margin per unit = $36.55

Requirement 2: Breakeven if fixed cost is $187,000

Break even point (units) = Fixed cost / Contribution per unit

Break even point (units) = 187,000/36.55

Break even point (units) = 5116 units

Lens A = 5116 x 25% =  1279 units

Lens B = 5116 x 40% = 2046 units

Lens C = 5116 x 35% = 1791 units

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Required units = Fixed cost - required profit / contribution per unit

Required units = ($187,000-$73,000)/$36.55

Required units = 7114 units

Lens A = 7114 x 25% =  1779 units

Lens B = 7114 x 40% = 2846 units

Lens C = 7114 x 35% = 2489 units

6 0
3 years ago
When developing baseline standards, it is vital to use industry best practices. Industry best practices standards enable one to
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Answer: True

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3 years ago
At an output level of 59,000 units, you calculate that the degree of operating leverage is 3.3. The output rises to 64,000 units
11Alexandr11 [23.1K]

Answer: Percentage change OCF = 27.96%.

Explanation:

Given that,

Output level = 59,000 units

Degree of operating leverage = 3.3

Output rises to 64,000 units,

Degree of Leverage = \frac{Percentage\ change\ in\ Operating\ cash\ Flow}{Percentage\ change\ in\ Quantity}

Percentage change OCF = Degree of Leverage × Percentage change in Quantity

= 3.3 \times \frac{64000-59000}{59000} \times 100

= 27.96%

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3 years ago
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