Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 How much overhead cost would be assigned to Product K91B using the activity-based costing system
Answers
Answer:
Product K91B= $10,743.82
Explanation:
Giving the following information:
Activity Cost Pool Activity Rate
Setting up batches $ 59.71 per batch
Processing customer orders $ 73.05 per customer order
Assembling products $ 4.40 per assembly hour
Product K91B
Number of batches 92
Number of customer orders 42
Number of assembly hours 496
We were given the allocation rates, all we need to do is allocate based on actual allocation base:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product K91B= 59.71*92 + 73.05*42 + 4.4*496
Product K91B= $10,743.82
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Answers
Answer:
Equivalent units for conversion cost is 10,790 units
Explanation:
Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630
Ending Work In Process 400 x 40% = 160
Total equivalent units for conversion cost = 10,790
Answers
Answer:
If the tax rate is 10% the better option is transaction 1 ($11,100 to 14,220)
IF the tax rate is 30% the better option is transaction 2 ($10,885 to 11,100)
Explanation:
We will compare the after tax cost for transaction two and check if it is better than 11,100 which will be the net cost for transaciton one
We must understad that the tax income deductible transacton provides a tax shield on the tax income, therefore his net effect is lower after considering taxes.
the rate will be think it as a discount to the pruchase price
at 10% income rate:
15,800 x ( 1 - 10% ) = 14,220
at 30% income rate
15,500 x ( 1 - 30% ) = 10,885
Answers
Answer:
Payback period = 2.5 years
Explanation:
given data
Year 0 1 2 3
cash -$500 $150 $200 $300
to find out
What is the project's payback
solution
Year Cash flows Cumulative Cash flows
0 500 500
1 150 350
2 200 150
3 300 150
so
Payback period = Last period with a negative cumulative cash flow +(Absolute value of cumulative cash flows at that period ÷ Cash flow after that period) .........................1
put here value we get
so
Payback period =
Payback period = 2.5 years
Final answer:
The payback period for the project is approximately 2.75 years.
Explanation:
The payback period is a financial metric used to assess the time it takes for an investment or project to generate enough cash flows to recover the initial investment cost. It's a simple tool for evaluating the risk and return of an investment, with shorter payback periods generally indicating lower risk. The payback period is the amount of time it takes to recover the initial investment in a project.
To calculate the payback period, we sum the cash flows until we reach or surpass the initial investment.
In this case, the initial investment is $500, and the cash flows are: $150, $200, and $300 in years 1, 2, and 3 respectively.
By adding the cash flows together, we find that the project's payback is 2 years and 25% of year 3, which is approximately 2.75 years.
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Answers
Answer:
True
Explanation:
I believe it's true. If we have a job opening for sales personnel and candidate is physically unable to walk or drive, then yes we can exclude that candidate. But once hiring manager is sure of the fact that disability will render that candidate unable to work then manager can preclude that candidate.
Whirlpool bath $10,000
Maintenance of the whirlpool $1,000
Increased utility bills associated with whirlpool $1,000
Entrance ramp, various home modifications $10,000
Bebe Rexha's deductible medical expenses will be _______.
Answers
Answer:
$31000 will be allowed as expenditure
Explanation:
given data
Wheelchair = $10,000
Whirlpool bath = $10,000
Maintenance = $1,000
Increased utility bills = $1,000
various home modifications = $10,000
solution
as here value of the home increased = $1000
and that is increaed utility bill of the whirlpool
so that expenditure will be added to value of asset
so
total expenditure is = $10000 + $10000 + $10000 + $1000 = $31000
so $31000 will be allowed as expenditure
Answers
Answer:
The Annual Operating Cash Flow is $1,029,811.43
Explanation:
Initial Investment = Cost of Machine + Modification Cost
Initial Investment = $2,575,000 + $375,000
Initial Investment = $2,950,000
Salvage Value = $0
Useful Life = 7 years
Depreciation per year = (Initial Investment - Salvage Value) / Useful Life
Depreciation per year = ($2,950,000 - $0) / 7
Depreciation per year = $421,428.57
Annual Operating Cash Flow = (Sales – Operating Costs) * (1 – Tax Rate) + Tax Rate * Depreciation
Annual Operating Cash Flow = ($1,890,000 - $454,600) * (1 - 0.40) + 0.40 * $421,428.571
Annual Operating Cash Flow = $1,435,400 * 0.60 + 0.40 * $421,428.571
Annual Operating Cash Flow = $1,029,811.4284
Annual Operating Cash Flow = $1,029,811.43
Final answer:
The annual operating cash flow for ABC after considering costs related to the machine investment, increased sales, and taxes, is $1,034,097.
Explanation:
To compute the annual operating cash flow, we first add up the total cost of the machine. This includes the purchase price of the machine which is $2,575,000, the cost of modifications which is $375,000, and the additional inventory investment of $75,000. This gives a total investment cost of $3,025,000. Given that this will be depreciated straight-line over 7 years with no salvage value, the annual depreciation expense will be $3,025,000 / 7 = $432,143.
The machine is expected to increase ABC's sales revenues by $1,890,000 per year, but will also increase operating costs excluding depreciation by $454,600. Therefore, the total annual income before tax would be the increased sales ($1,890,000) minus the increased costs ($454,600) and the depreciation ($432,143), which equals $1,003,257.
As ABC's tax rate is 40%, the annual tax payable will be: $1,003,257 * 0.4 = $401,303. The annual income after tax is then $1,003,257 - $401,303 = $601,954. Finally, we must remember to add back the depreciation (as it is a non-cash item) to get to EBIT. This gives us a final operating cash flow of $601,954 + $432,143 = $1,034,097.
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