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rewona [7]
1 year ago
8

Collingsworth, Inc. produces 3 products: AKM, BWT, and CPQ. Product AKM requires 700 purchase orders, Product BWT requires 1,080

purchase orders, and Product CPQ requires 1,720 purchase orders. The company has identified an ordering and receiving activity cost pool with allocated overhead of $504,000 for which the cost driver is purchase orders. How much ordering and receiving overhead is assigned to Product AKM
Business
1 answer:
marusya05 [52]1 year ago
5 0

Answer:

Allocated MOH= $100,800

Explanation:

<u>First, we need to calculate the predetermined allocation rate for ordering and receiving:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and receiving= 504,000 / (700 + 1,080 + 1,720)

Ordering and receiving= $144 per order

<u>Now, we allocate to product AKM:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 144*700

Allocated MOH= $100,800

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Bachmann Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the f
DaniilM [7]

Answer:

Time needed to complete the 4th unit = 57.80 hours

Explanation:

<u><em>The learning curve theory</em></u><em> states that as the cumulative output doubles the cumulative average time taken till date is reduced to a certain percentage of the previous time. This percentage is called learning rate</em>

Total time = Average time × cumulative number of units

The cumulative average time is determined using the formula below:

Y= aX^b

a - time taken for the first unit produced

b = log LR/Log 2

X- cumulative units till date

Y - cumulative average time taken for X units

LR- Learning rate

LR = 68/80 = 0.85 = 85%

<em>Time needed to complete the 4th unit</em>

= Learning rate × time take for the 2 unit

= 85% × 68

= 57.80 hours

Time needed to complete the 4th unit = 57.80 hours

8 0
2 years ago
Waterways packages some of its products into sets for home installations. One set (small) sells for $77 with variable costs of p
horrorfan [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

One set (small) sells for $77 with variable costs of production for the set at $50. Another set (large) sells for $152 with variable costs of $100.

Contribution margin= selling price - unitary variable cost

Contribution margin Small Set= 77 - 50= $27 per unit.

Contribution margin Large Set= 152 - 100= $52 per unit.

4 0
2 years ago
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,00
Reika [66]

Answer: $69,959

Explanation:

The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:

First, we calculate the present value of payment which will be made on September 30,2020 and this will be:

= $1000000 × 0.857339

= $857339

Then, the interest expense on December 31,2018 will be:

= $857339 × 8%/12 × 3

= $17147

Therefore, the Interest expense on December 31,2019 will be:

= ($857339 + $17147) × 8%

= $874486 × 0.08

= $69959

3 0
2 years ago
Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inv
umka21 [38]

Answer:

Equivalent units  =   3,855 units

Explanation:

Equivalent unit are notional whole units which represent incomplete work and are used to apportion cost between working in progress and completed work.

Equivalent unit is calculated as:

Degree of completion (%) × Units .

The equivalent units can be calculated by using either the first in first out (FIFO)  or weighted average method.

Here, we will use the FIFO.

FIFO: Under this method, to account for the completed units of a particular period, it is assumed that the opening inventory units must first be completed. That is, the first set of completed units should be the opening inventory.

The table below has been set out for explanation:

Items                   Units Notes Workings Equiv.Units

Opening inventory  200  1 40% × 200 80

Fully worked               3,700  2 100% × 3700 3700

Closing Inventory          300  3 25% × 300 75

Equivalent unit                                  3,855.0

Notes

1. 60% work has already been done in the previous period (September) so in October the balance is done.

2. The fully work represents units of new work introduced in October and completed in the same period. The value is 3900- 200 = 3700

3. The closing inventory is the units of new work started in October but not yet completed at the end of October.

Equivalent units = 3,855.0

4 0
2 years ago
You just ended a meeting with Ming (one of your six employees), who gave you some disturbing information. She feels she is being
Ksju [112]

Answer:Do you think Ming is correct in saying Mindy is bullying her?

Yes , she is right, Mindy is definitely bullying her.

What are the indications of bullying?

Bullying doesn't only occur physically but also psychologically and and emotionally,especially in a place of work it can de identified by mistreatment of the other person,verbal abuse , threatening and humiliating the other person.

The bullied person is outcastes , alienated , excluded and ignored like what Mindy is doing, ignoring Ming while he greet everyone else , excluding her by not inviting her in a farewell lunch , eventhough all other colleagues are invited by Mindy.

Spreading false rumours is also part of bullying .

He also critized her publicly by publicly sharing an email about a loss of a client caused by Ming .

These are all signs of abuse.

What advice would you give to Ming?

She will need to keep record or document everything so that when she decides to take the matter further , she may be able to submit proof of what has been happening to her,this will give evidence.

How would you handle this situation with Mindy, without embarrassing Ming?

I think talking to Mindy in an objective way without including Ming's name will be helpful since Mindy has publicly shared his bullying activities. I can actual point out things that are not allowed at work and how certain things can be harmful and degrading to other employees. Make him see how certain behavior affects other employees and how this can be a serious issue that can affect the company and affects even Mindy himself .

5 0
2 years ago
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