Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:Activity Cost Pools(and Activity Measures)EstimatedOverhead CostMachine related (machine-hours)$81,600 Batch setup (setups)$387,000 Order size (direct labor-hours)$274,800 Expected ActivityActivity Cost PoolsProduct XProduct YTotalMachine related3,0005,0008,000Batch setup2,0008,00010,000Order size7,0005,00012,000Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $149,000
B. $371,700
C. $387,000
D. $268,300
Answer: D
You might also like to view...
As part of his company's initiative to create a high-performance work system, Cody, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Cody to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Cody to use?
A. Customer satisfaction should lower employee absenteeism and turnover, which reduces costs and raises profits. B. Improving customer satisfaction should increase demand, leading to greater sales and profits. C. Getting employees focused on customer satisfaction should take their focus off compensation, lowering costs. D. Satisfied customers should result in higher quality, which, in turn, will increase the degree of innovation. E. Focusing on customer satisfaction will drive up productivity, which, in turn, drives up profits.
A model that incorporates time and uncertainty in which prices, wages, and interest rates adjust to bring all markets to equilibrium and which allows economic agents to make decisions in their own interest is known as?
A. ?A dynamic, stochastic, general-equilibrium model B. ?A structural macroeconomic model C. ?A business-cycle model D. A statistical model
Prepare an analysis to show which product the company should emphasize. Explain your answer. (Do not round intermediate answers.)
Peacock Purse sells designer and everyday priced handbags. Top management is deciding which product line to emphasize. Company accountants have provided the following data:
The store has 5,000 square feet of floor space. If the company emphasizes everyday handbags, it can display 1,000 items in the store. If the store emphasizes designer handbags, it can display only 680 items. These numbers are also the average monthly sales in units.
Organizing a message effectively involves grouping ideas to show relationships
Indicate whether the statement is true or false