Direct
Labor-Hours per Unit Annual
Production
Rims 0.80 13,000 units
Posts 0.40 42,000 units

Additional information about the company follows:
a. Rims require $20 in direct materials per unit, and Posts require $18.
b. The direct labor wage rate is $15 per hour.
c. Rims are more complex to manufacture than Posts, and they require special equipment.
d. The ABC system has the following activity cost pools:

Estimated Activity
Activity Cost Pool (and activity measure) Overhead Cost Rims Posts Total
Machine setups (number of setups) $ 27,720 110 88 198
Special processing (machine-hours) $ 157,500 4,500 0 4,500
General factory (direct labor-hours) $ 272,000 10,400 16,800 27,200

Required:
1. Compute the activity rate for each activity cost pool.

For each example identify the most appropriate ctso

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?