This problem has been solved!
See the answer
Murri Corporation has an activity-based cos...
Business, 24.03.2020 05:24 jesusdelao
This problem has been solved!
See the answer
Murri Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below:
Factory Utilities(total): 29000
Indirect Labor(total): 7000
Distribution of Resource Consumption Across Activity Cost Pools:
Processing Setting Up Other Processing Setting up Other
Factory Utilities .4 .1 .5
Indirect Labor .5 .2 .3
MHs Batches
Product X7 2,900 700
Product L4 7,100 300
TOTAL 10,000 1,000
Product X7 Product L4
Sales (total) $54,000 $85,100
Direct Materials (total) $19,100 $33,500
Direct Labor (total) $26,300 $35,000
a) Assign overhead cost to activity cost pools using activity-based costing.
b) Calculate activity rates for each activity cost pool using activity-based costing.
c) Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
d) How much out of the cost would NOT be assigned to products using the activity-based costing system?
e) Determine the product margins for each product using activity-based costing.
Answers: 3
Business, 22.06.2019 09:40
Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?
Answers: 2
Business, 22.06.2019 12:10
Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:
Answers: 2
Business, 23.06.2019 00:50
Hubert manages a grocery store in a country experiencing a high rate of inflation. to keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. his employees regularly deal with customer annoyance over the frequent price changes. this is an example of the of inflation.
Answers: 2
Business, 23.06.2019 01:30
Bmw receives data transmitted by each new vehicle it sells to employees understand how customers use the products and when service may be needed. this use of technology aids in bmw's efforts to interact in an ongoing basis with its customers.
Answers: 1
Computers and Technology, 25.01.2021 20:50
English, 25.01.2021 20:50
History, 25.01.2021 20:50
Mathematics, 25.01.2021 20:50