BUSINESS COLLEGE

The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:DirectLabor-Hoursper unit AnnualProductionRims 0.30 26,000 unitsPosts 0.50 70,000 unitsAdditional information about the company follows:Rims require $15 in direct materials per unit, and Posts require $11.The direct labor wage rate is $15 per hour.Rims are more complex to manufacture than Posts and they require special equipment.The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts TotalMachine setups Number of setups $ 32,900 60 140 200Special processing Machine-hours $114,800 4,000 0 4,000General factory Direct labor-hours $1,404,000 6,000 72,000 78,000c.A security guard patrols the company grounds after normal working hours.d.Purchase orders are issued for materials to be used in production.e.Modifications are made to product designs.f.New employees are hired by the personnel office.g.Machine settings are changed between batches of different products.h.Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)i. Insurance costs are incurred on theRequired:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Activity Cost Pool Activity RateMachine setups per setupSpecial processing per MHGeneral factory per DLHcompanyâs2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Unit product cost of Rims Unit product cost of Posts

Answers

Answer 1
Answer:

Answer:

Please sew below and attached.

Explanation:

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

2. Determine the unit product cost of each product according to the ABC system.

•The unit product cost for RIMS = $28.45 , while the unit product cost for POSTS = $37.34

Please find attached detailed solution to the above .

Related Questions

The office product division in Hyacinth Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment. 1. Which of the following statements is TRUE given that the company's minimum required rate of return is 10%? Multiple Choice: O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company. O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company. O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division. O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division. O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.
As a long-term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc.'s 500,000 shares for $580,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $350,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $615,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
The Macro Islands can produce either 250 bamboo towels or 500 botanical soaps using all its resources. The Micro Islands can produce either 30 bamboo towels or 300 botanical soaps using all its resources. Based on this information, which of the following is true?The Macro Islands have a comparative advantage in producing both goods.The Micro Islands have a comparative advantage in producing neither good.The Micro Islands have a comparative advantage in producing bamboo towels.The Micro Islands have a comparative advantage in producing botanical soaps.The Micro Islands have a comparative advantage in producing both goods.
Managers find operation costing useful in cost management because​ it: A. focuses on control of physical processes of a given production system B. often results in profit maximization C. uses job costing to account for the conversion costs and process costing for the material and customizable components D. results in cost minimization
Olive, the owner of Olive’s Orchard, contracts to sell its harvest to Pure Foods, Inc. Later Olive refuses to perform. Pure Foods files a suit to enforce the contract. Olive and Pure Foods are in a state that does not recognize the doctrine of unconscionability. To defend successfully against enforcement of the contract on similar grounds, Olive might rely on traditional notions of a. ​materiality. b. ​mistake. c. ​value. d. ​fraud.

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $25.50 per share; its last dividend was $2.20; and it will pay a $2.31 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity

Answers

Answer:

14.06%

Explanation:

The computation of the cost of common equity using the DCF method is shown below:

Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate  

= [$2.31 ÷ $25.50] + 0.05

= 14.06%

We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts: December 4 Freight charge for merchandise purchased $ 62 December 7 Delivery charge for shipping to customer $ 46 December 12 Purchase of office supplies $ 30 December 18 Donation to charitable organization $ 51 If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal entry to reimburse the fund on December 31 will include:

Answers

Answer:

A credit to Cash of $299

Explanation:

Journal Entry                     Debit    Credit

Merchandise inventory      $62

Delivery charges                 $46

Office supplies                    $30

Miscellaneous expenses    $51

Cash over and short            $100

Cash                                                   $299

Cash to be reimbursed = Minimum cash balance required - Cash balance left

Cash to be reimbursed = $500 - $201

Cash to be reimbursed = $299

Suppose that the average annual return on the Standard and Poor's 500 Index from 1969 to 2005 was 14.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?

Answers

Answer:

Market risk premium = 9.2%

Explanation:

The market risk premium is the difference between the market returns and the t bill yield. To calculate the market risk premium of this duration we will need to subtract the average annual t bill yield from the average annual return on the standard and poor's 500 index.

14.8-5.6=9.2

In an attempt to obtain listings, a broker visits sellers in a particular neighborhood and tells them that property values will soon decline due to a recent influx of minority home buyers. This tactic is _________.

Answers

Answer:

The correct answer is letter "D": illegal.

Explanation:

Blockbusting is the illegal practice by which real estate brokers spread the word among homeowners of a given area that the price of their properties is undervalued because of any false reason made up by the broker in an attempt of having owners to sell their houses so the broker can have more listings.  

As a result of blockbusting, the price of houses decline. The license of brokers engaged in this activity is subject to disciplinary action.

Mandalay Resorts had revenue of $2,462, income from continuing operation of $53, provision for income tax of $40, interest expense of $230, & depreciation & amortization of $216 (all in millions). Mandalay had EBIT (in millions) of: a. $539 b. $323 c. -$217 d. $1,923

Answers

Answer:

The correct answer is D

Explanation:

The formula to compute the EBIT (Earnings before Interest and Tax) is as:

EBIT (Earnings before Interest and Tax) = Revenue - Provision for income tax - amortization and depreciation - Interest expense - income from continuing operation

where

Revenue is $2,462

Depreciation and amortization is $216

Provision for income tax is $40

Income from continuing operation is $53

Interest expense is $230

Putting the values above:

EBIT = $2,462 - $216 - $230 - $53 - $40

EBIT = $1,923

ordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials $ 5,800 Unit-level labor 6,400 Unit-level overhead 3,900 Product-level costs* 9,600 Allocated facility-level costs 26,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.80 each. Required Calculate the total relevant cost. Should Jordan continue to make the containers

Answers

Answer:

1. $19,300

2. Yes

Explanation:

1. The computation of relevant cost is shown below:-

= Unit-level materials + Unit-level labor + Unit-level overhead + Product level cost

= $5,800 + $6,400 + $3,900 + $3,200

= $19,300

Working note:-

Product level cost = $9,600 ÷ 3

= $3,200

2. Yes, Therefore Production is lower than buying cost, hence it is better to continue production.

Purchase price =  9,200 × $2.80

= $25,760
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