Answer:
Step 1: Identify the activities that generate costs
Step 2: Now we will find cost pools and their relevant cost drivers
Step 3: Assign the cost of each activity (cost pool) on a fair basis which is cost drivers
cost assigned to total products of A = (cost pool/total units of relevant cost driver consumed) *units of cost driver consumed by total # of Products A
Step 4: Divide the Answer from the step 3 by total units of product A produced to calculate unit cost
Step 5: Add prime cost per unit to it to calculate total unit cost of the product A
Explanation:
The costs in the ABC system are allocated to unit product on more fair basis than the tradition absorption costing which only assume one fair basis for allocation of overhead costs. ABC critisises traditional costing technique for using only one basis for absortion of Overheads.
Suppose both Mr. A and Mr. B drank 5 glasses of juices. Each glass of juice costs $4. According to the Traditional absorption costing technique each individual must pay:
(5 Juices/2)*$4=$10
But ABC says its unfair, use a more appropriate basis for cost allocation. So upon investigating we came to know that Mr. A drank 3 glasses of juice and Mr. B drank 2 glasses of juice. So Mr. A must pay $12(3*$4) and Mr. B must pay $8(2*$4). This is more appropriate or fair basis of absorbing the overhead cost to each individual and is Activity Based Costing.
Answer: A batch size of 30units
Explanation:
The set up time is given as 20 Minutes per production cycle, Production cycle for the machine has 3 cycles
Therefore the set uo time for the cycles = 20 mins x 3= 60 minutes
Processing time = 0.5 minutes
Capacity = 24units per hour , changing to minutes we have
24 units / 60 minutes = 6/ 15 = 2/5 = 0.4 minutes
Capacity = Batch size / Set up time + batch size x processing time per unit
0.4 = B/ 60 + B X 0.5
0.4 = B/60 + 0.5B
0.4( 60 + 0.5B) = B
24 + 0.2B=B
24=B-0.2B
0.8B=24
B =24/0.8
Batch size = 30 can be achieve at a capacity of 24 units per hour.
b. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.
c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. (Do not round intermediate calculations.)
d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: Common Market
Explanation:
Common market is also a type of economic integration. The economic integration ranges from Preferential trade agreement, free trade agreement, custom unions, common market and economic union.
The countries cooperate with each other by initiating these types of economic integration.
Common market is a category of economic integration where there can be a free flow of factors of production such as capital and labor between the nations. There is a free movement of capital and labor among trading partners. Common market is a area where group of countries work together to encourage trade by removing tariffs for their member countries.
a. True
b. False
Answer:
$84,300
Explanation:
Purchase cost 75000
commission 4500
property taxes 4000
Title insurance 800
Total cost 84300
**Property taxes for current period will be charges as expense and not to be capitalized