Answer:
(a) $9,000 per employee
(b) $252,000; $198,000
Explanation:
Given that,
Fringe benefits cost during 2018 = $450,000
Employees assigned to division A = 28
Employees assigned to division B = 22
(a) Allocation rate:
= Total cost to be allocated ÷ Cost driver
= $450,000 ÷ 50
= $9,000 per employee
(b) Cost assigned to A:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 28
= $252,000
Cost assigned to B:
= Division Allocation Rate × Weight of base (No. of employees)
= $9,000 × 22
= $198,000
Answer:
Synergy
Explanation:
Synergy is the concept that the combined performance of two entities will be better than each of them acting individually.
In this instance when the two teams that each produce 100 containers per day became integrated as one, they now produce 300 containers a day. This is as a result of their increased division of labor, combined efficiencies and expertise of team members.
Answer:
1. Understand difference in the reporting manner for Management Accountants and Financial Accountants.
2. Refer to Company policy documents and International Reporting Standards to clearly expose the difference.
3. Consult with other co-workers on who the information is intended and agree on whose opinion to base the reporting.
Explanation:
Management Accountants or CMA prepare Financial Statements for Management use and there are no Statotory or Strict guidelines on how these statements are prepared.
Whilst Financial Accountants prepare Financial Statements for External reporting and have to abide by the Reporting Standards (either GAAP or IFRS).
So, they will be always be differences in the manner of reporting.
The solution is to understand the user of those statements that are being prepared and <em>take the opinion that meets those users needs</em>.
Answer: $112000
Explanation:
First, we calculate the book value in year 7 which will be:
= Depreciation × Balance life
= $400,000 × 3/10
= $120,000
Then, the cash flow as a result of the transaction will be:
= Asset sale - (Asset - Book value) × Tax rate
= 110000 - [(110000 - 120000) × 20%]
= 110000 - (-2000)
= 110000 + 2000
= 112000
