Answer:
Deluxe= $4.25 per book
Moderate= $4.25 per book
Economy= $4.25 per book
Explanation:
Giving the following information:
Activity (Cost) Cost Driver Delux Moderate Economy
Machine maintenance ($330,000) machine hours 250 750 1,000
Setups ($630,000)
Packing ($166,000)
Photo development ($574,000)
First, we need to calculate the total overhead cost:
Total overhead= 330,000 + 630,000 + 166,000 + 574,000= 1,700,000
Now, we can calculate the estimated manufacturing overhead rate to allocate overhead to each book type.
The allocation base is machine-hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,700,000/ 2,000= $850 per machine hour.
Now, we can allocate overhead to each book:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe= $850*250hours= $212,500
Moderate= $850*750hours= $637,500
Economy= $850*1,000= $850,000
Based on the number of units, we can calculate the unitary overhead:
Deluxe= $212,500/50,000= $4.25 per book
Moderate= $637,500/150,000= $4.25 per book
Economy= $850,000/200,000= $4.25 per book
To determine the overhead cost per book for each type, we first establish the cost per unit/activity (machine hour, setup, carton, picture). Then, we multiply each activity cost by the respective number of activities for each book type. Finally, we divide the total overhead cost by the number of books produced. This method is known as Activity-Based Costing.
To determine the overhead cost per book for each book type, Activity-Based Costing (ABC) is used. This cost allocation method assigns overhead costs to each activity (or task) involved in the production process and then allocates these costs to the various products based on the volume of each activity they require.
Step 1: Calculate the cost per driver for each activity.
Step 2: Calculate the total overhead cost for each book type by multiplying the cost per driver by the number of drivers for each activity.
Step 3: To find the overhead cost per book, divide the total overhead cost by the number of books produced.
From this exercise, it is clear that different products consume overhead resources differently and thus can have different per-unit overhead costs when you move from the traditional cost system to the Activity Based Costing method.
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Answer:
$6,200
Explanation:
Beginning Work in progress $15,000 $8,000
Units started $60,000 $38,500
Total process $75,000 $46,500
Less: Units transferred to tax $65,000
Ending work in progress $10,000
Average cost method material cost of work in progress = Material cost ÷ Total units
$46,500 ÷ $75,000
= $0.62
Material cost of work in progress = $0.62 × $10,000
= $6,200
In April, Plemmon Company started with $8000 worth of materials and used $38500 over the month. 65,000 units were completed, leaving 10,000 units still in process. The materials cost of these remaining units, calculated using the average cost method, is $6,200.
To find the material cost of work in process at April 30 using the average cost method, we first need to calculate the total cost of material used throughout April, which includes both the cost of materials from initial work in process and the materials started during the month. That gives us the sum of $8,000 and $38,500, amounting to $46,500 in total materials cost. Since 65,000 units were completed and transferred out during April, this means 10,000 units (75,000 units at the start and started during April - 65,000 units completed) remain in work in process at the end of April. Average cost per unit is calculated as total cost divided by total units, giving us $46,500 divided by 75,000 units, which equals $0.62 per unit. The material cost of work in process at April 30 is thus 10,000 units times $0.62, giving a result of $6,200.
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b. Segmentation
c. Orientation
d. Centralization
Answer:
The correct answer is letter "C": Orientation.
Explanation:
The primary organization-specific factors are orientation, size of the organization, and degree of centralization. Orientation refers to the function of a company that controls the decisions in regards to purchases. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.
Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company.
Answer:
Borrowed Amount = $330,000
Interest Rate = 12%
Interest Expense = Borrowed amount * Interest Rate
Interest Expense = $330,000 * 12%
Interest Expense = $39,600
Answer:
$3,620
Explanation:
Accounts receivable at the beginning + recorded credit sales -accounts receivable written off -ending balance accounts receivable.
Therefore:
$690+$3,200-$100-$170 =$3,620
B) marginal revenue = marginal cost
C) marginal benefit = marginal cost
D) all of these are true
A profit maximizing competitive firm in a market with NO externalities will produce the quantity of output where
Option D
Explanation:
All of the options are true.
In a highly competitive market, companies set marginal incomes at marginal cost level (MR= MC) in order to make a profit. MR is the pitch of the profit curve, which represents the (D) and price (P) of the demand curve as well.
It is necessary to have positive, or negative economic benefits in the shorter term. The company profits whenever the price exceeds the total average cost. The company loses on the market if premiums are less than average total costs.
Answer:
1
Unitary elastic
Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%
Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%
Elasticity of demand = 40% / 40% = 1
If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.
I hope my answer helps you
The price elasticity of demand is calculated to be 1, indicating unitary elasticity. This means a percentage change in price leads to an equal percentage change in quantity demanded, which implies widgets have a proportional responsiveness to price changes.
The price elasticity of demand for widgets can be calculated using the formula: PED = (% Change in Quantity Demanded) / (% Change in Price)
To determine the percentage change in quantity demanded, subtract the new quantity (15 widgets) from the original quantity (25 widgets), divide by the original quantity, and multiply by 100. The calculation is: [(15 - 25) / 25] * 100 = -40%
The percentage change in price is calculated as: [(7 - 5) / 5] * 100 = 40%
Substituting these values into the formula gives: PED = (-40%) / (40%) = -1. Because we usually report price elasticity of demand as absolute values, we interpret it as 1 in absolute value terms.
Since the price elasticity of demand is 1, it indicates a unitary elasticity. This implies that a 1% change in price induces a proportionate 1% change in quantity demanded. So, as price increased, customers decreased their purchase of widgets proportionately.
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