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kolbaska11 [484]
2 years ago
14

St. Vincent's, Inc., currently uses traditional costing procedures, applying $800,000 of overhead to products Beta and Zeta on t

he basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow. Product Pool No.1 (Driver: DLH) Pool No. 2 (Driver: SU) Pool No. 3 (Driver: PC) Beta 1,200 45 2,250 Zeta 2,800 55 750 Pool Cost $ 160,000 $ 280,000 $ 360,000 The overhead cost allocated to Zeta by using activity-based costing procedures would be: Multiple Choice None of the answers is correct. $560,000. $240,000. $356,000. $444,000.
Business
1 answer:
tatyana61 [14]2 years ago
6 0

The overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

The following formula for determining the overhead cost allocated to Zeta:

= Zeta pool no 1 ÷ total pool no 1 × pool cost + zeta pool no 2 ÷ total pool no 2 × pool cost + zeta pool no 3 ÷ total pool no 3 × pool cost

= 2,800 ÷ 4,000 × $160,000 + 55 ÷ 100 × $280,000 + 750 ÷ 3,000 x $360,000

= $356,000

Therefore we can conclude that the overhead cost that should be allocated to Zeta via activity-based costing is $356,000.

Learn more about the overhead here: brainly.com/question/11950737

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Pappy's Toys makes two models of a metal toy—Standard and DeLuxe. Both models are produced on a single machine. The price and co
Molodets [167]

Answer:

a) it will do 210,000 units of standard

b) 127,500 units of standard

     19,000 units of deluxe

Explanation:

         Standard   Deluxe

Sales                      115        135

Variable Cost      50         54

CM                            165         189

Constrain resource     0.5                1.5

   (machine hours)

CM per constrain  330.00    126.00

a)

As the company can use up to 105,000 machine hours It will use as much as it can in doing Standard model which yield a better contribution of the constrain resource.

105,000 machine hours available / 0.5 hours per standard unit = 210,000 units

As there are 230,000 untis available for Standard we can use the entire capacity for standard and achieve the maximum contribution

b) as there isn't enough demand for standard the compay will do the 127,500 and the rest fill it with deluxe:

105,000 hours - 127,500 x 0.5 = 28,500 hours for deluxe

28,500 / 1.5 hours per unt = 19,000 units for deluxe

3 0
3 years ago
In _____, products are made according to customer specifications.
Alisiya [41]
Mass customization (build to order)
4 0
3 years ago
Read 2 more answers
United States Steel Corporation’s (X) 7.5% bonds due in 2022 were reported as selling for 103.2.
kirill [66]

Answer:

because they are able to create it at a lower price

Explanation:

4 0
3 years ago
Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must han
expeople1 [14]

Answer:

Option "C" is the correct answer to the following situation.

Explanation:

Bounded rationality is the concept that we make informed decisions but within the constraints of the information available to each other and our intellectual capacity.

Bounded rationality is the belief that the wisdom of people in decision-making is restricted by the knowledge they have, the logical capacities in their brains and the small number of hours they need to make a decision.

Therefore, option "C" is correct answer

7 0
3 years ago
On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock
butalik [34]

Answer:

Taxes on January 1, year 1= $1400

Taxes on Dec 31, year 4=$3300

Explanation:

The question relates to 'EQUITY GRANT', which is some sort of compensation given to somebody, especially/specifically to employees of an entity provided that certain conditions/vesting requirements are satisfied by the employee.

Now on January 1, year 1 Dave has received 1000 shares, for him the shares received is treated is income for Dave, as the shares are being offered against certain services rendered by Dave to RRK corporation. So on January 1 Dave would record income and pay income tax as follows:

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Value of shares on Jan 1/ income= $7000

<em>Lets assume income tax is 20% and marginal tax rate is 10%,</em> the tax consequences would be as follows:

TAXES = $7000×20%

TAXES = $1400

There will be no tax consequences at the vesting date and at the end of year 4 (the date when he sells them) there will be tax consequences of $4000.

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Amount realized= $40000 -$7000

Taxes at marginal rate= $33000×10%

Taxes at marginal rate= $3300

(Note: $7000 is subtracted because it's already present in $40000).

8 0
3 years ago
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