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
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

You might be interested in
Stanley Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrat
sammy [17]

Answer:

So markup percentage will be 8 % on total unit cost

Explanation:

We have given that cost base per unit including selling and  administrative expenses is $60

per unit cost of selling and and administrative expenses is $15

The company desired ROI per unit is $6

We have to calculate the markup percentage on total unit cost

Markup percentage on total unit cost is given by '

markup percentage = \frac{desired\ ROI}{cost\ base\ per\ unit+ The \ per\  unit \ cost \ of \ selling \ and \ administrative\  expense}=\frac{6}{60+15}=0.08=8%  

So markup percentage will be 8 % on total unit cost

3 0
3 years ago
When can a bank repossess someone's car?
Marysya12 [62]

Answer:

A. when the owner defaults on the loan payment

6 0
1 year ago
Read 2 more answers
Keynes believed that Question 8 options: Say's law would hold in a laissez-faire economy. the economy would always be near or on
zloy xaker [14]

Answer:

wages and prices are often inflexible in the downward direction.

Explanation:

John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.

Keynes believed that wages and prices are often inflexible in the downward direction.

In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.

6 0
2 years ago
The stated purposed of NAFTA is to A. gain membership in the WTO. B. reduce the outsourcing of jobs to foreign countries. C. pha
jekas [21]

Answer:

C. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S

Explanation:

The North American Free Trade Agreement (NAFTA)

This agreement creates a bloc of trade for the region, Canada, Mexico and the US.

As state on "C" It result in the elimination or reduction of barriers to trade and investment between the countries.

It will be replaced in the following year by the United States–Mexico–Canada Agreement (USMCA)

But NAFTA will keep working until this new agreement is finished.

4 0
3 years ago
A business produces 10 units of output. Its average variable cost (AVC) = $25, average fixed cost (AFC) = $5, and marginal cost
kramer

Answer: $30

Explanation:

Given that,

Average variable cost (AVC) = $25

Average fixed cost (AFC) = $5

Marginal cost (MC) = $30

Average total cost (ATC) = Average fixed cost (AFC) + Average variable cost (AVC)

                                          = $5 + $25

                                          = $30

Therefore, average total cost is the sum of average fixed cost and average variable cost. Alternatively, average total cost is calculated by dividing total cost to units of output produced.

6 0
2 years ago
Other questions:
  • When brad john talks about the fact that he is going to have to create different financial plans depending on the amount of busi
    15·1 answer
  • A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It
    14·1 answer
  • There is a need to develop theories about what kind of fraud has occurred.
    7·1 answer
  • If the cost of producing orange juice​ increases, the equilibrium price of orange juice will​ ________ and the equilibrium q
    11·1 answer
  • Elastic demand exists when:
    7·1 answer
  • During the current year, the Guileman Manufacturing Company signed a noncancelable contract to purchase 1,000 lbs. of a raw mate
    8·1 answer
  • Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:
    12·1 answer
  • Swifty Corporation financed the purchase of a machine by making payments of $20500 at the end of each of five years. The appropr
    5·1 answer
  • Summit Record Company is negotiating with two banks for a $150,000 loan. Fidelity Bank requires a compensating balance of 26 per
    7·1 answer
  • Markets for individuals looking to buy products or services for personal or household use are called _____.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!