Nourse enterprises makes a variety of products that it sells to other businesses. the company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. details concerning that abc system are listed below: activity cost pool activity measure activity rate supporting assembly direct labor-hours (dlhs) $ 5.65 per dlh processing batches number of batches $ 180.00 per batch processing orders number of orders $ 68.55 per order serving customers number of customers $ 2,423.00 per customer the cost of serving customers, $2,423.00 per customer, is the cost of serving a customer for one year. solecki corporation buys only one of the company’s products. the details of last year’s purchases of this product are listed below: number of units purchased 900 units number of batches 4 batches number of orders 1 order direct labor-hour requirement 0.20 dlhs per unit selling price $ 30.00 per unit direct materials cost $ 6.65 per unit direct labor cost $ 3.85 per unit according to the abc system, the total overhead cost for this customer this past year was closest to:
a. $19,083.55b. $16,020.00c. $14,670.00d. $10,578.55

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)