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ratelena [41]
2 years ago
12

Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the compa

ny allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) $260,000 Building occupancy 600,000 Personnel costs 110,000 Total common costs $970,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) 20,000 40,000 Payroll $380,000 $180,000 Computer time (hours) 200 220 Computer storage (megabytes) 4,050 -0- Equipment value $200,000 $250,000 Operating profit (pre-allocations) $555,000 $495,000 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B
Business
1 answer:
skad [1K]2 years ago
5 0

Answer:

$136,190

Explanation:

The computation of computer cost allocated to Division B is shown below:-

Computer cost allocated to Division B = Computer service cost × Computer time of Division B ÷ Total computer time.

= $260,000 × 220 ÷ (200 + 220)

= $260,000 × 220 ÷ 420

= $260,000 × 0.5238

= $136,190

Therefore for computing the computer cost allocated to Division B we simply applied the above formula.

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Flauer [41]

Answer:

5.59%

Explanation:

$1,000 bonds carrying a 4% coupon rate, semiannual coupon $20, matures in 20 years

if you purchase the bonds at $715, the nominal annual rate of return = coupon payments / bond price = ($20 + $20) / $715 = $40 / $715 = 5.59%

The nominal annual rate of return is calculated by dividing the revenue generated by an investment by the cost of the investment.

8 0
2 years ago
Aaron norman earned $24,900 for the year from marcus company. the company is subject to a suta tax of 4.7% on the first $9,900 o
Svetach [21]

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To calculate the Federal Unemployment Tax Act (FUTA) taxes that the employer must pay we have to multiply Aaron's salary times FUTA tax rate:

$24,900 x 0.6% = $149.40

To calculate the State Unemployment Tax Act (SUTA) taxes that the employer must pay we have to multiply Aaron's salary times SUTA tax rate:

$9,900 x 4.7% = $465.30

4 0
2 years ago
Wee Be Irish produces authentic Irish gifts and clothing. Wee Be Irish uses a good deal of television advertising and sales prom
gregori [183]

Answer:  pull marketing strategy

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In the given case, WEE be is using TV medium to promote its product hence they are using pull marketing strategy.

3 0
2 years ago
If a firm has high current and quick ratios, this always is a good indication that a firm is managing its liquidity position wel
ohaa [14]

Answer:

True

Explanation:

Current and Quick ratio shows the liquidity position of the company. It shows that how much assets are available to company to pay off its liabilities if it becomes due in short period of time. High current and quick ratio make the company strong and it will have enough asset to deal with its obligation than with low current and quick ratio.

4 0
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marketing student is estimating the average amount of money that students at a large university spent on sporting events last ye
SCORPION-xisa [38]

Answer:

Option A

Explanation:

We can be 90% confident that the mean amount of money spent at sporting events last year by all the students at this university is between $ 217 and $ 677.

The interval offered by option A, is the same result obtained by the student on his research. By the definition the confidence interval permit us to conclude that the mean of the population would be on that interval.

7 0
2 years ago
Read 2 more answers
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