All categories

3 years ago

Advanced Products Corporation has supplied the following data from its activity-based costing system:

Business

1 answer:

Vladimir79 [104]3 years ago

8 0

Answer:

1. Direct labor Support $150,000

Order processing $100,000

Customer Support $80,000

Other $70,000

Totals $400,000

2. Activity cost pool Activity rate

Supporting direct labor $ 7.50 per DLH

Order processing $ 250 per order

Customer Support $ 400 per customer

3. Overhead cost $800

4.$-100

Explanation:

1. Prepare of the report showing the first-stage allocations of overhead costs to the activity cost pools.

Direct labor Support Order processing Customer Support Other Totals

Wages and salaries $120,000 $90,000 $60,000 $ 30,000 $300,000

(40%*$300,000=$120,000)

(30%*$30,000=$90,000)

(20%*$300,000=$60,000)

(10%*$300,000=$30,000)

(100*$300,000=$300,000)

Other overheads cost $ 30,000 $10,000 $20,000 $ 40,000 $ 100,000

(30%*$100,000=$30,000)

(10%*$100,000=$10,000)

(20%*$100,000=$20,000)

(40%*$100,000=$40,000)

(100%*$100,000=$100,000)

TOTAL COST $150,000 $100,000 $80,000 $70,000 $400,000

Therefore the first-stage allocations of overhead costs to the activity cost pools are :

Direct labor Support $150,000

Order processing $100,000

Customer Support $80,000

Other $70,000

Totals $400,000

2. Computation for the activity rates for the activity cost pools.

Activity cost pool Activity rate

Supporting direct labor $ 7.50 per DLH

($150,000/20,000=$ 7.50)

Order processing $ 250 per order

($100,000/400=$250)

Customer Support $ 400 per customer

($80,000/200=$400)

Therefore the activity rates for the activity cost pools are:

Activity cost pool Activity rate

Supporting direct labor $ 7.50 per DLH

Order processing $ 250 per order

Customer Support $ 400 per customer

3. Preparation of a report showing the overhead costs for the order from Shenzhen Enterprises including customer support costs.

Activity cost pool ABC cost

Supporting direct labor $150

($7.50*2*10)

Order processing $250

($100,000/400=$250)

Customer Support $400

($100,000/200=$400)

Overhead cost $ 800

($150+$250+$400)

Therefore the overhead costs for the order from Shenzhen Enterprises including customer support costs is $800

4. Preparation of a report showing the customer margin for Shenzhen Enterprises

Shenzhen Enterprises

Customer Margin - ABC Analysis

Sales (10* $300) 3,000

Less Costs:

Direct materials (10*$180) $1,800

Direct labor (10 * $50) $ 500

Overhead cost $800

($150+$250+$400)

Total cost ($3,100)

Customer margin $-100

($3,000-$3,100)

Therefore the customer margin for Shenzhen Enterprises is $-100

You might be interested in

Take a quick look at all the market segments by clicking on the SEGMENTS/SUMMARY tab. As you analyze the opportunity for each se

nignag [31]

Question Completion:

Demographic Data on Market Segments

Segment Market Growth Purchase Average

Size Rate Behavior Price

Urban Commuters 20,000 3% 23% $45.00

School Children 35,000 1% 20% $24.00

Outdoor Enthusiasts 14,000 5% 12% $90.00

Luxury Trend Followers 5,000 7% 11% $70.00

University Students 24,000 5% 15% $32.00

Answer:

From looking at the information provided about each segment, the segment which represents the greatest portion of the entire market at close to 36% is:

School Children.

Explanation:

a) Data and Calculations:

Demographic Data on Market Segments

Segment Market Growth Purchase Average Market

Size Rate Behavior Price Size %

Urban Commuters 20,000 3% 23% $45.00 20.4%

School Children 35,000 1% 20% $24.00 35.7%

Outdoor Enthusiasts 14,000 5% 12% $90.00 14.3%

Luxury Trend Followers 5,000 7% 11% $70.00 5.1%

University Students 24,000 5% 15% $32.00 24.5%

Total market size 98,000

b) Market Size in percentage is computed as a ratio of each market segment to the total market size. Companies engage in market segmentation and sizing by dividing a target market into smaller, more defined categories that share similar characteristics such as demographics, interests, needs, or locations. The purpose is to identify the different groups within the target market so that more tailored and valuable goods and services can be provided to meet the customers' sweet spots.

5 0

3 years ago

Universal Travel Inc. borrowed $500,000 on November 1, 2013, and signed a 12-month note bearing interest at 6%. Interest is paya

valentinak56 [21]

Answer:

C.$5,000.

Explanation:

November 1, 2013

Amount of Loan = $500,000

As the Interest is payable at maturity, at December 31, 2013 only one month of interest expense is accrued, which is not paid, Following Journal entry will be passed tor record the interest expense.

Dr. Interest Expense $2,500

Cr. Interest Payable on Note $2,500

Interest Expense = $500,000 x 6% x 2/12 = $5,000

6 0

4 years ago

If a egg need 5 mins to cook how many mins 7 eggs need to cook

denis23 [38]

35 its just 5 x 7 you multiply the number of eggs by how many minutes.

6 0

3 years ago

a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects

lidiya [134]

If the publisher actually sells 1300 textbooks:

C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

A. the publisher will lose money on the sale of the textbooks.
B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

#SPJ4

3 0

1 year ago

"The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This lin

Aleksandr-060686 [28]

Answer:

ethical climate

Explanation:

We were informed that the link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time.

In this this case is most evident in firms that have a strong ethical climate. Strong ethical climate in finance reffered to the degree of ethics been utilized by an organization, it involves the morals and improve employee morale when they experience ethical climate such as caring, independence and other ethical factors.

4 0

4 years ago