Vushnu TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures...Privott, Incorporated, manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:EstimatedOverheadCost$ 324,018Expected ActivityActivity Cost PoolsActivityMeasuresProduct Z9 Product NOTotalLabor-relatedDLHSProduct testingtestsOrder sizeMHs45,747471,1086,4004003,0009,4005009004,0004,3008,300$ 840,873The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:Multiple Choice$91.49 per DLH$934.30 per DLH$114.37 per DLH

3. Calculate the rate:Activity Rate (Labor-Related) ≈ $34.47 per DLH (rounded to two decimal…

Answered: TB MC Qu. 4-24 (Static) Privott,…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Activity-based costing in an insurance company Umbrella Insurance Company carries three major lines of insurance: auto, workers' compensation, and homeowners. The company has prepared the following report for 20Y2: Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity-base usage data for each line of insurance were retrieved from the corporate records and are shown below. a.Complete the product profitability report through the administrative activities. b.Determine the underwriting income as a percent of premium revenue. C.Determine the Operating income as a percent of premium revenue, rounded to one decimal place. d.Interpret the report.
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 327,018 6,700 3,300 10,000 Product testing tests 47,247 550 650 1,200 Order size MHs 472,608 4,300 4,600 8,900 $ 846,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice A. $72.69 per DLH B. $705.73 per DLH C. $85.90 per DLH D. $32.70 per DLH
Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product 12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758
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Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer c. During the next…

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