Answer:
The answer is 9,360 direct labor-hours.
Explanation:
The first step is to calculate the direct labor-hours per unit. The second step is to calculate the total direct labor-hours required to produce the additional systems.
Step 1
Direct labor-hours per unit = Direct labor / Average wage rate per hour
Star100: Direct labor-hours per unit = 40 / $25 = 1.6
Star150: Direct labor-hours per unit = 50 / $25 = 2
Step 2
Total labor-hours required = Direct labor-hours per unit x Number of systems required
Star100: Total labor-hours required = 1.6 x 2,600 = 4,160
Star150: Total labor-hours required = 2 x 2,600 = 5,200
Combined direct labor-hours required = 4160 + 5,200 = 9,360
Answer:
Per unit customer costs = $4.5 per unit
Explanation:
Under activity based costing cost are allocated based on per activity rate.
Customer return processing activity rate = $45 per return
Shipping activity rate = $10 per shipment
for Product 1
Total cost of shipment and return will be as follows:
Shipment = 1,200 X $10 = $12,000
Returns = 150 X $10 = $1,500
Total = $12,000 + $1,500 = $13,500
Total units = 3,000
Per unit customer costs = $13,500/3,000 units = $4.5 per unit
Answer: d. Uncle John's
Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.
When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.
In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)
<span>Net Income After Tax = Net Income Before Tax - Tax
Net Income Before Tax = 170,000-75,500-10,200+(16,500*0.0725)=85,496.25
Tax = 0.35*Net Income Before Tax=0.35*85,496.25= 29,923.69
Net Income After Tax = 85,496.25- 29,923.69 = 55,572.56</span>
