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NeX [460]
2 years ago
11

Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3

is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880 1,200 400 1,600 Order size MHs 433,075 3,900 3,700 7,600 $ 539,591 The unit product cost of Product R3 under activity-based costing is closest to
Business
1 answer:
Tcecarenko [31]2 years ago
3 0

Answer:

$695.24 per unit

Explanation:

Calculation to determine what The unit product cost of Product R3 under activity-based costing is closest to

First step is to Calculate Activity rates

Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)

Labor related Number of DLH $ 40,636÷13,000 = 3.13 Per DLH

Production orders Number of Order 65,880÷ 1,600= 41.18 Per Order

Order size Number of MH 433,075÷ 7,600 = 56.98 Per MH

Second step is to calculate the Cost assigned to Product R3

Cost assigned to Product R3

Activity name Activity Rates Activity ABC Cost

(A) (B) (A x B)

Labor related 3.13 * 11,000 =$34,430

Production orders 41.18* 1,200=$49,416

Order size 56.98*3,900= $222,222

Total Overheads assigned $306,068

($34,430+$49,416+$222,222)

Production 1,100

Overhead cost per unit $278.24

Product R3

Direct material $211

Direct labor (10x $20.60 per DLH) $206

Overheads $278.24

Total Cost per unit $695.24

($211+$206+$278.24)

Therefore The unit product cost of Product R3 under activity-based costing is closest to $695.24 per unit

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Indicate whether it would appear on the statement of cash flows as a(n)? operating activity, investing activity, or financing ac
nikitadnepr [17]

Indicate whether it would appear on the statement of cash flows as operating activities.

There are three types of cash flow: operating cash flow, investment cash flow, and financial cash flow. Operating cash flow is generated from the company's normal operating activities. This includes cash proceeds from sales, cash outlays on goods sold (COGS), and other operating expenses such as overheads and salaries.

Investing cash flows include amounts spent to purchase securities intended to be held as investments, such as securities. B. Stocks or bonds of other companies or the Treasury. Inflows are generated by interest and dividends paid on these holdings.

Learn more about cash flows at

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#SPJ4

7 0
1 year ago
Companies having the greatest impact on the computation of the Dow Jones Averages and the Standard & Poor's Indexes have the
Softa [21]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Highest price; highest total market value

b) Highest total market value; highest price

c) Highest price; lowest liquidity

d) Greatest number of shares outstanding; highest price

And the correct answer is the option B: Highest total market value; highest price.

Explanation:

To begin with, both terms the Dow Jones Averages and the Standard & Poor's are indexes for the respective american stock market in where the better companies of the country are in the list so that why that mostly of them will obviously have the  highest total market value and its respectively highest price due to the fact that are the companies that produce more and work better than others and the public buy stocks from them and that makes them richer and richer.

3 0
3 years ago
Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is
Viktor [21]

Answer:

$12.49

Explanation:

The computation of the expected current price is shown below:

But before that first we have to determine the current firm value which is

Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2

= $1,424.48 million

Now

Expected current share price is

= ($1,424.48 - $275 million + $100 million) ÷ 100 million shares outstanding

= $12.49

7 0
3 years ago
MNCs can use their global presence toa. take advantage of underpriced labor services available in certain developing countries.
denis23 [38]

Answer:

a. take advantage of underpriced labor services available in certain developing countries.

b. gain access to special R&D capabilities residing in advanced foreign counties.

c. boost profit margins and create shareholder value.

d. avoid regulations and lower tax burdern

Explanation:

Multinational corporation is a company that operates locally in its home country and also aborad. It usually maintains a central office that coordinates business activities.

MNCs have various advantages which includes:

- taking advantage of lower priced labour in developing countries, for example some companies take advantage of cheap labour in China to produce their goods.

- when a company operates in an advanced economy it will take advantage of research and development there.

- regulations and tax burdens can be avoided by setting up manufacturing plants in countries with low regulatory policies.

- MNCs boost shareholder profits by taking advantage of their multiple locations to gain more profits.

7 0
2 years ago
Read 2 more answers
3. A company manufactures two types of products: A and B. Three resources R1, R2, and R3 are required to make these products. a.
mojhsa [17]

Answer:

(i)The units of production of Product A and B (x and y) are the decision variables

(ii)Objective is to maximize profit

(iii)Objective function, Max P=20x+50y

(iv)The Contraints are:

8x+2y\leq500....(i)

2x+5y\leq400.......(ii)

3y\leq180

x>0, y>0

Explanation:

Let the number of Product A=x

Let the number of Product B=y

Each unit of product A requires 8 units of R1 and 4 units of R2.

Each unit of product B requires 2 units of R1, 5 units of R2, and 3 units of R3

The availabilities of resources R1, R2, and R3 are 500, 400, and 180

Since R1 \leq500,

Product A requires 8 units of R1 per production unit

Product B requires 2 units of R1 per production unit

Total Unit of R1 possible is given by the inequality: 8x+2y\leq500....(i)

Since R2 \leq400,

Product A requires 2 units of R2 per production unit

Product B requires 5 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 2x+5y\leq400....(ii)

Since R3 \leq180,

Product B requires 3 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 3y\leq180....(iii)

Since the manufacturer also makes a profit of $20 and $50 for products A and B, our objective is to maximize profit

Therefore: Objective function, Max P=20x+50y ......(iv)

5 0
3 years ago
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