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marusya05 [52]
2 years ago
15

Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setu

ps, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $360000 for which the cost driver is machine setups. How much overhead is assigned to each product?
Business
1 answer:
Gnesinka [82]2 years ago
7 0

Answer:

Earth = $90,000

Wind = $67,500

Fire = $202,500

Explanation:

Activity based costing is a costing system that assigns the cost of identified activities , mostly overhead and indirect cost to all products and services produced according to the respective volume of the activities consumed by each of the products and services , using cost drivers.

Workings.

The cost driver in the scenario is Machine set up

Earth = 80 set up

Wind = 60 set up

Fire = 180 set up

Total = 320 set up

General Overhead = 360,000

Earth = 80/320 *360,000 = 90,000

Wind = 60/320*360,000 = 67,500

Fire = 180/320*260000 = 202,500

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Question 1 Jenson College provides its own housekeeping services. The College director would like to outsource this service and
NeX [460]

Answer:

c)Qualitative factors that affects outsourcing decision"

1)Quality of services :Whether the company to whom services are outsourced is capable enough or has sufficient experience in providing housekeeping services .A bad quality service can destroy customer /client relations .

2)Long term relations : whether the company to whom services are outsourced is trustworthy and is interested to maintain long term relations .

6 0
2 years ago
DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000
ahrayia [7]

Answer:

$24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

Explanation:

Calculation for what how much income will Percy report for the year and what is its character

Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000

= 60,000 x 40%

= 24,000.

Calculation for Percy Interest income:

4,000 x 40%

= 1,600

Guaranteed Payment: 20,000

Therefore what Percy will report will be: $24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

7 0
2 years ago
Which of the following indicators is not considered when determining whether performance obligations are satisfied at a point in
otez555 [7]

Answer:

The correct answer is letter "B": The customer is likely to reject delivery of the asset.

Explanation:

In the corporate world, contract performance obligations are those established by two parties one to manufacture or render and deliver goods or services and the other to receive them. That contract can be signed in front of sales, resales, granting rights or constructing or developing an asset.

<em>Facts such as the right to payment for the goods, the client's risk of ownership of the title and the goods themselves can determine if the performance obligations are met or not but the possibility that represents the customer could reject the delivery of the product will not.</em>

4 0
2 years ago
Nikolai knows that what his boss has asked him to do is not in the best interest of the company. He also knows that if he does n
Karo-lina-s [1.5K]

Answer:

The correct answer is letter "D": if all else fails, slow the spread of bad practice.

Explanation:

Evidence-based management is a critically thought-provoking approach to decision making. This practice has the following principles: treat your organization as an unfinished prototype; <em>no brag, just facts; see yourself and your organization as outsiders do; evidence‐based management is not just for senior executives; like everything else, you still need to sell evidenced‐based management; if all else fails, slow the spread of bad practices; and questioning what happens when people fail? </em>

In front of a problematic situation, the "if all else fails, slow the spread of bad practices" is used when the consequence of an action is likely to be negative, but usually represents an order in the relationship of a principal-agent. The agent then carries out the necessary procedure as slowly as possible to prevent an unexpected reaction.

5 0
2 years ago
Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner,
erma4kov [3.2K]

Answer:

0.9717 per unit sold (approx)

Explanation:

Here, we are assuming 52 weeks in a year.

Contribution margin:

= (Sales revenue - variable cost) ÷ sales revenue

= [(3.52 × 10 + 3.52 × 0.18 × 540 × 52) - (3.52 × 0.26 × 551)] ÷ (3.52 × 10 + 3.52 × 0.18 × 540 × 52)

=  [(35.2 + 17,791) - (504)] ÷ (35.2 + 17,791)

= [17,826.2 - 504] ÷ 17,826.2

= 17,322.2 ÷ 17,826.2

= $0.9717 per unit sold (approx)

5 0
2 years ago
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