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
zhuklara [117]
2 years ago
5

Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two pr

oducts follow:
Direct Labor-
Hours per Unit Annual Production Total Direct
Labor-Hours
Model N 800 XL 3.0 3,000 units 9,000
Model N 500 1.0 12,000 units 12,000
21,000
Additional information about the company follows:
a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25.
b. The direct labor wage rate is $18 per hour.
c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products.
d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows:
Activity Cost Pool Activity
Measure Estimated
Overhead Cost
Machine setups Number of setups $ 360,000
Special processing Machine-hours 165,000
General factory Direct labor-hours 1,260,000
$ 1,785,000
Expected Activity
Activity Measure Model N 800 XL Model N 500 Total
Number of setups 100 200 300
Machine-hours 16,500 0 16,500
Direct labor-hours 9,000 12,000 21,000
References
Section BreakProblem 3-17A Contrast Activity-Based Costing and Conventional Product Costs [LO3-2, LO3-3, LO3-4]
2.
value:
6.00 points
Required information
Problem 3-17A Part 1
Required:
1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products.
a. Compute the predetermined overhead rate.
b. Compute the unit product cost of each model.
Business
1 answer:
oee [108]2 years ago
6 0

a. The predetermined overhead rate is $85 Per DHL

b. The unit product cost of each model are:

•N800 $384

•N500 $128

a. Computation for  the predetermined overhead rate

Using this formula

Plantwide predetermined overhead rate= Estimated total costs/Total direct labour hours      

Let plug in the formula

Plantwide predetermined overhead rate =         1,785,000 /             21,000

Plantwide predetermined overhead rate =$85 Per DHL

b. Computation of Unit product Cost for each models      

N800  N500

Direct material $75.00  $25.00  

Direct labour  $54.00  $18.00

($18 per hour×3.0=$54)

($18 per hour×1.0=$18)  

Overhead  $225.00  $75.00

(85×3=$255)  (85×1.0=$85)  

Total Unit cost $384.00  $128.00  

Inconclusion a. The predetermined overhead rate is $85 Per DHL

b. The unit product cost of each model are:

•N800 $384

•N500 $128

Learn more here:

brainly.com/question/14103783

You might be interested in
An adjusting entry for accrued expenses involves: (Select all that apply.) debit to an expense credit to an expense credit to a
Aloiza [94]

Answer:

Explanation:

The journal entry to record the accrued expense is shown below:

Example:

Wages expenses A/c Dr XXXXX

         To wages payable A/c XXXXX

(Being the accrued expenses is recorded)

While recording the wages expenses, we debited the accrued expenses as it increases the expenses account and credited the wages payable account as the liabilities account is also increased

8 0
3 years ago
The term risk, when applied to borrowers, specifically refers to
Nat2105 [25]
D.  Lenders are worried that the borrower won't pay them back, and they assess how likely that is to happen by looking at the borrower's income, other assets, credit history, etc.
3 0
3 years ago
Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7. 96% sales tax, a $2,138 veh
charle [14.2K]

The down payment that would be paid by reg is $2,800.

<h3 /><h3>What is a down payment?</h3>

A down payment is the first partial payment for the purchase of price expensive items or services, such as a car or a house. It is usually paid off in cash or equal at the time of finalizing the transaction. A loan of some kind is then asked to finance the remainder of the payment.

<u>Computation </u><u>of a down Payment:</u>

<u />

According to the question,

The total amount of car would be:

\text{List Price + Sales Tax + Registration Fee + Documentation Fee}\\\\\$22,499+\$1,791+\$2,138+\$262 = \$26,690.

r= 10.27%,

r=\dfrac{10.27}{12\times100}\\\\\\r= 0.00855833 ,

t= 12\times3\text{Years}=36 \text{Months}.

Monthly Payment = $773.89.

Let X be the amount of payment that is given in the starting.

\text{Monthly Payment} = \dfrac{\text{(List Price - x) r }}{1-(1+r)}}\\\\\\\$773.89 = \dfrac{(22,49-\text{x )0.0085533}}{1-(1+0.0085533)}\\\\\text{x}=$23889.84

The amount of down payment would be:

\text{Down Payment}=\text{Total Amount - Down Payment}\\\\\\\text{Down Payment}=\$26,690-\$23889.84\\\\\text{Down Payment}=\$2,801 \text{App.}

Hence, Option D is correct.

Learn more about the down payment, refer:

brainly.com/question/1114543

<u />

5 0
2 years ago
In Lean/JIT systems the burden of ensuring quality of production inputs from vendors shifts from the _____________ to the ______
irina [24]

Answer:

Buyer/seller

Explanation:

In the case of lean system it focused on the customer side while on the other hand the JIT i.e. Just in time focused on the manufacturing process i.e. efficiency

So in the case of lean or JIT system the burden for ensuring the production quality from vendor shifts is from the buyer to the seller

Therefore the above represents the answer

6 0
2 years ago
Fooling Company has a callable bond outstanding with a coupon of 10.4 percent, 25 years to maturity, call protection for the nex
erastovalidia [21]

Answer:

The yield to call for this bond is 9.30%

Explanation:

Yield to call

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Now use the following formula to calculate the Yield to call

Yield to Call = [ C + ( F - P ) / n ] / [ ( F + P ) / 2 ]

Where

F = Face value = $1,000 ( Assumed )

C = Coupon Payment = Face value x Coupon rate = $1,000 x 10.4% = $104

P = Call price of the bond = Face value + Call Premium = $1,000 + $75 = $1,075

n = Numbers of years to call = 10 years

Placing vlaues in the formula

Yield to Call = [ $104 + ( $1,000 - $1,075 ) / 10 years ] / [ ( $1,000 + $1,075 ) / 2 ]

Yield to Call = 0.0930

Yield to Call = 9.30%

8 0
3 years ago
Other questions:
  • The balanced scorecard approach uses only financial measures to evaluate performance. uses rather vague, open statements when se
    13·1 answer
  • Lobbyists are hired by companies to influence legislation to meet a company's goals. They ask for things needed to program plans
    11·2 answers
  • True Blue Corporation provided the data set forth above from its activity-based costing system.
    11·1 answer
  • The existing balance in the Allowance for Doubtful Accounts is considered in computing bad debt expense when using the percentag
    10·1 answer
  • Summarize the internal control principle of establishing responsibility by completing the following sentence. Proper internal co
    15·1 answer
  • To an economist, utility refers to the______________.a. usefulness of a good or service.b. satisfaction that results from the co
    13·1 answer
  • United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a di
    14·1 answer
  • the 360 degree feedback performance appraisal system tries to improve performance ratings by forcing managers to :
    9·1 answer
  • The risk premium for common stocks
    13·1 answer
  • Profit maximization fails to provide an appropriate goal for financial managers because.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!