Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities: Machine Setups, Special Processing, Factory Supervision, and Customer Relation.
The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHs) are given below for one unit of the product, as well as the total units produced and sold.
Product
Price
DM
DLHs
Hourly Wage-DL
Shipping Cost
Units
Basic
$180
$50
1
$10
$1
6,000
Pro
$320
$80
2
$12
$4
4,000
The company collected the data for ABC as follows:
Activity Cost Pool
Activity Measure
Estimated OH cost
Activity measures used
Basic
Pro
Machine Setup
# of setups
$ 472,500
60
120
Special Processing
Machine hours
$ 360,000
6,000
10,000
Factory Supervision
DLH
$ 224,000
Customer Relation (10 customers)
# of customers
$ 240,000
The company has two major customers (A and B), who buy their products in the amounts in the table below.
CustomerAB
Basic8002,000units
Pro1,2001,000units
How much is the ABC customer margin of customer B? (Choose the closest amount.)
Answers: 1
Another question on Business
Business, 21.06.2019 13:00
One way that marketing mix characteristics differ for organizational buying
Answers: 3
Business, 21.06.2019 15:00
He cornerstone of arsoac, the is organized into four like battalions and provides nighttime, all-weather, medium range insertion, extraction, and resupply capability in hostile or denied areas.
Answers: 2
Business, 22.06.2019 03:40
Oceanside marine company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. oceanside uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 2 pound per unit; $ 11 per pound direct labor: 2 hours per unit; $ 19 per hour oceanside produced 2 comma 000 units during the quarter. at the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 98 comma 100. what is the direct materials cost variance? (round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
Answers: 1
Business, 22.06.2019 07:30
Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]
Answers: 3
You know the right answer?
Alrex company is using an activity-based costing (ABC) system. The company produces and sells two pr...
Questions
Mathematics, 16.08.2020 14:01
