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Mama L [17]
2 years ago
6

Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity

for each of the company's three activity cost pools are as follows:
Expected Activity

Activity Cost Pool Estimated Costs Product A Product B Total

Activity 1 $32,600 700 300 1,000Activity 2$17,600600 200 800Activity 3 $52,500 400100500

The activity rate under the activity-based costing system for Activity 3 is closest to:

Answer
a. $44.65
b. $105.00
c. $525.00
d. $205.00
Business
1 answer:
Anvisha [2.4K]2 years ago
5 0

Answer:

b. $105.00

Explanation:

The computation of the activity rate under the activity-based costing system  is shown below:

For Activity 3,

The activity rate is

= Estimated cost ÷ Estimated activity

= $52,500 ÷ 500

= $105

We simply divided the estimated cost by the estimated activity to get the activity rate

All other information which is given is not considered. Hence, ignored it

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nordsb [41]

Answer:

B.

Explanation:

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So, the correct answer is option B.

7 0
2 years ago
Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5% to open her lingerie shop. The date of the loan was March 5.
dezoksy [38]

Sue will pay back $507.20 in interest expense.

Explanation:

The formula for calculating simple interest is:

SI = P x r x t ÷ 100

  • P = Principal
  • r = Rate of Interest
  • t = Term of the loan/deposit in years

In the given problem,

  • Sue Gastineau borrowed $17,000 from Regions Bank so, P = $17000
  • Sue Gastineau borrowed $17,000 from Regions Bank at a rate of 5.5%, so r = 5.5 %
  • Number of days of the loan = March 5 to September 19
  • Sue borrowed $17,000 from Regions Bank for the period of = 198 days, So t = 198 / 365

Simple Interest = (17000 * (5.5/100) * (198/365))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = (17000 * (0.055) * (0.5424657534246575‬))

Simple Interest = $507.20

5 0
1 year ago
For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes t
ziro4ka [17]

Answer:

$6.25 per ton of coal

Explanation:

the depletion base = purchase cost + restoration costs

  • purchase cost = $20 million
  • restoration costs = $6 million

depletion base = $26,000,000

depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal

The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.

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If the container store owners/managers were to walk around and personally thank each employee for doing a good job, then this wo
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I<span>f the container store owners/managers were to walk around and personally thank each employee for doing a good job, then this would be a motivating factor. This action exhibits a good environment as well for employees to foster as they're performances are acknowledged by their employers. if this goes on, this will inspire many employees to alleviate their status.</span>
8 0
1 year ago
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It maybe might be C not sure tho
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