Prescott expects to produce 225,000 basic models and 225,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model?Estimated overhead cost / Estimated qty of the allocation base= Predetermined OH Basic Model Professional ModelManufacturing overhead assembly 264800 195200Manufacturing overhead packaging 55200 227700Total manufacturing overhead cost 320000 422900
Answers
Answer and Explanation:
The Calculation of Predetermined OH Rate is shown below:
For Materials Handling, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $54,000 ÷ 96
= $562.50 per part
For Machine Setup, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $204,000 ÷ 60
= $3,400 per setup
For Insertion of Parts, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $486,000 ÷ 96
= $5,062.50 per part
Now
Calculation of allocated OH is
For Basic Model:
Allocated OH is
= $562.50 × 32 + $3,400 × 20 + $5,062.50 × 32
= $248,000
For Professional Model:
Allocated OH is
= $562.50 × 64 + $3,400 × 40 + $5,062.50 × 64
= $496,000
Related Questions
Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance Theodore McMahon opened a law office on April 1, 2018. During the first month of operations, the business completed the following transactions: Requirements 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. 2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. 3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal. 4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
Depreciation, in accounting, is a process that results in: Multiple Choice an accurate measurement of the economic usefulness of an asset. depreciable assets being reported in the balance sheet at their fair value. accumulating cash for the replacement of the asset.
An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,150,000 and annual maintenance of $115,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is assumed to be permanent, and the discount rate is 12% per year. Determine if the Corps should proceed with the project.What will be an ideal response?
Presented below are a number of balance sheet items for Montoya, Inc. for the current year, 2020. Goodwill $ 125,000 Accumulated Depreciation-Equipment $ 292,000Payroll Taxes Payable 177,591 Inventory 239,800 Bonds payable 300,000 Rent payable (short-term) 45,000 Discount on bonds payable 15,000 Income taxes payable 98,362 Cash 360,000 Rent payable (long-term) 480,000 Land 480,000 Common stock, $1 par value 200,000 Notes receivable 445,700 Preferred stock, $10 par value 150,000 Notes payable (to banks) 265,000 Prepaid expenses 87,920 Accounts payable 490,000 Equipment 1,470,000 Retained earnings ?Retained earnings ?Debt investments (trading) 121,000Income taxes receivable 97,630Accumulated depreciation-buildings 270,200Notes payable (long-term) 1,600,000Buildings 1,640,000Required:Required:1. Prepare a classified balance sheet in good form.
Answers
Answer:
The correct answer to the following question will be "She enhanced her brand image".
Explanation:
- Keira dramatically improved her brand reputation by getting ready a logo to promote her unquantifiable facility of various dog walking the dog. Designed to enhance the brand identity requires connecting with the clients regarding your brand as well as trying to make your provider or good extra attractive to the users. That is among the most powerful advertising moves.
- Keira aims to grow its market here by generating more competition for its intangible growing organization. For all of this she chooses to help improve her brand value so that she can get so many requirements for her provider as well as make higher revenue.
So that the above is the right answer.
Answers
Answer:
Options A, B, C, and E.
(Please check the explanation section before you judge or pick your answer)
Explanation:
The options A, B, C, and E are the options that are considered complex if we want to Craft a strategy to compete in one or more foreign markets.
Please take note that if the question asked us to pick which of the options is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets then we would have picked Option D.
As given in the question, that is option D which says; '' buyer tastes and preferences creates challenges in standardizing products and services." Will not be a reason for crafting a strategy to compete in one or more foreign markets is inherently complex.
Countries due to globalization tends to participate in international trades. Competition in the international trade has its advantages as well as its disadvantages or risks.
To trade in the international market, countries must have their individual strategies and Option D above is NOT a inherently complex reason when crafting a strategy to compete in one or more foreign markets
Final answer:
Business strategies for foreign markets are complex due to differences in governmental policies, economic conditions, buyer tastes and preferences, and currency exchange rates. Hence the correct option is (C).
Explanation:
Crafting a business strategy to compete in foreign markets is indeed a complex task. This complexity arises due to variations in governmental policies and economic conditions, the different buyer tastes and preferences that need to be considered, and the fluctuating currency exchange rates across nations.
For instance, governmental policies and economic conditions may influence a country's business environment. A business-friendly government policy, stable political conditions, healthy economic indicators are desirable for the smooth functioning and growth of businesses.
Also, the tastes and preferences of buyers differ greatly from one country to another, hence making it a must for businesses to understand the local culture, traditions, and buying habits and design products/services accordingly.
In addition, Currency exchange rates can be highly volatile, adding another layer of complexity to planning and executing a business strategy for international markets.
Learn more about International Business Strategy here:
#SPJ3
Answers
Answer:
$1,023
Explanation:
As for the provided information, we have:
Total cost associated with JOB 806 = $682
Is it completed = Yes
Are the product sold = Yes
Now, it is provided that the selling price of products = Cost + 50% of cost
Or simply Cost 150% = Selling Price of goods
Therefore, selling price of this job = $682 150% = $1,023
Answers
Answer: Aggregate Demand will shift by $25 billion dollars at each price level
Explanation:
1 % rise in Household wealth increases , Consumer Spending by $5 Billion. We can assume that when Household wealth Decreases by 1% consumer spending decreases by $5 billion dollars.
if Household Wealth Decreases by 5% aggregate demand will fall by $25 Billion (1% represents 5 Billion, so 5% will be $5 Billion x 5). Aggregate Demand Curve will initially shift by $25 billion at each price level when household wealth Falls by 5%
b. 200
c. 50
d. 100
e. 1000
Answers
Answer: 100
Explanation: Its 100
b. A furnace repair team that services an average of 2 furnaces a day if the design capacity is 6 furnaces a day and the effective capacity is 5 furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems
Answers
Answer:
a. Utilization= 30%
Efficiency= 42.85%
b. Utilization= 33.33%
Efficiency=40%
c. . Based on the calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.
Explanation:
a. Calculation to Determine the utilization and efficiency for each
Calculation for utilization
Using this formula
Utilization = (Actual Output/Design Capacity)*100
Let plug in the formula
Utilization= (3/10)*100
Utilization= 30%
Using this formula to calculate for efficiency
Let plug in the formula
Efficiency = (Actual Output/Effective Capacity)*100
Efficiency= (3/7)*100
Efficiency= 42.85%
b. Calculation for utilization
Using this formula
Utilization = (Actual Output/Design Capacity)*100
Let plug in the formula
Utilization= (2/6)*100
Utilization= 33.33%
Using this formula to calculate for efficiency
Let plug in the formula
Efficiency = (Actual Output/Effective Capacity)*100
Efficiency= (2/5)*100
Efficiency=40%
c. In a situation where the design capacity is High this means that there is likelyhood that the utilization could be lesser despite the efficiency was high.
Therefore based on the above calculations , the utilization will tend to relied on the design capacity and it may vary accordingly.
Utilization and efficiency are calculated for loan processing and furnace repair operations. Higher efficiency does not always mean higher utilization.
a. To determine the utilization of the loan processing operation, we divide the average number of loans processed per day by the design capacity: 3 loans / 10 loans = 0.3 or 30%. The efficiency can be found by dividing the average number of loans processed per day by the effective capacity: 3 loans / 7 loans = 0.43 or 43%.
b. Utilization for the furnace repair team is found by dividing the average number of furnaces serviced per day by the design capacity: 2 furnaces / 6 furnaces = 0.33 or 33%. Efficiency is calculated by dividing the average number of furnaces serviced per day by the effective capacity: 2 furnaces / 5 furnaces = 0.4 or 40%.
c. No, systems with higher efficiency ratios do not always have higher utilization ratios. Efficiency measures how well resources are utilized, while utilization measures the percentage of available capacity being used. For example, a system with low efficiency may still have high utilization if it is operating at or near its design capacity. Conversely, a system with high efficiency may have low utilization if it is operating well below its design capacity.
Learn more about Utilization and efficiency here:
#SPJ3