Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Expected production Direct materials and Direct labour costs Equipment setup Machine processing Quality control 50,000 phones Packaging/Shipping $25 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis of the costs of Blue and Yellow: Blue Yellow Budgeted Cost 100 setups 60,000 machine hours Yellow 10,000 inspection hours 250 shipments 150,000 phones 2. Calculate the cost of the Blue Phone. $40 60 setups 440,000 machine hours 20,000 inspection hours 150 shipments Required: 1. Calculate the manufacturing overhead allocation rate for each activity using ABC $88,000 $1,750,000 $1,260,000 $240,000 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Expected production Direct materials and Direct labour costs Equipment setup Machine processing Quality control 50,000 phones Packaging/Shipping $25 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis of the costs of Blue and Yellow: Blue Yellow Budgeted Cost 100 setups 60,000 machine hours Yellow 10,000 inspection hours 250 shipments 150,000 phones 2. Calculate the cost of the Blue Phone. $40 60 setups 440,000 machine hours 20,000 inspection hours 150 shipments Required: 1. Calculate the manufacturing overhead allocation rate for each activity using ABC $88,000 $1,750,000 $1,260,000 $240,000 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
Expert Answer:
Answer rating: 100% (QA)
Certainly lets go through each requirement step by step 1 Calculate the manufacturing overhead allocation rate for each activity using ABC To calculat... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
PTech Ltd. manufactures two models of cordless phones. The Family Friend model has features designed for a multiple-user family, including the ability to have multiple ringtones and caller ID. The...
-
Summit Company makes two models of snowboards, the Junior and the Expert. Its basic production information follows: Summit has monthly overhead of $484,746, which is divided into the following cost...
-
Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Keller has monthly overhead of $22,360, which is divided into the...
-
A nutritionist at the Food and Drug Administration is studying the effects of cereal marketing on family meal choices. In particular, she would like to understand how cereal manufacturers market...
-
Organizational Change impacts all organizations. Discuss the various theories of managing organizational change and provide insight into how using one of them might have lighted the burden within an...
-
Express the determinant of the following matrix as a sum of 2 2 determinants using co-factor expansion on the first row. You do not need to evaluate the 2 2 determinants. -2 4 13 3 1 -1 -1 1 1
-
On January 2, 2020, Wayne Inc. signed an eight-year lease for office space for \(\$ 24,000\) annually, with the first payment due immediately. Wayne has the option to renew the lease for an...
-
Jefferson County operates a centralized motor pool to service county vehicles. At the end of 2011, the Motor Pool Internal Service Fund had the following account balances: The following events took...
-
Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll...
-
A model was developed to predict the length of a sentence (the response variable) for a male convicted of assault using the following predictor variables: age (in years), number of prior felony...
-
Record the issuance of 2,200 shares of common stock with a par value $2 for a price of $25 per share. Note: Enter debits before credits. Transaction b General Journal Debit Credit
-
Federalism in the United States has evolved since this country's founding. The federal government and state governments frequently disagree on each other's roles or responsibilities. When these...
-
Clayton Industries has the following account balances: Current assets $ 2 4 , 0 0 0 Current liabilities $ 8 , 0 0 0 Noncurrent assets 8 9 , 0 0 0 Noncurrent liabilities 5 4 , 0 0 0 Stockholders...
-
1. On the CIA World Factbook website it says that the world population increases by about 1% each year. This means that the population multiplies by 1.01 each year. There are currently about 7...
-
6. You still work at Apple and they have promoted you to work on their iPhone batteries Assume the demand for these replacement batteries is given by d= -4x+64 where x is the number of batteries (in...
-
If f(x) = 18x + 27, find f'(11).
-
You take out a 3 0 - year fixed - rate mortgage for $ 2 0 0 , 0 0 0 with an interest rate of 4 . 8 % ( APR ) . what is the monthly payment?
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
What is a master budget? Briefly describe its contents.
-
What is meant by the term discounting?
-
How do you compute the cost of goods manufactured?
-
\(106+75+94\) Use properties of real numbers and mental math to calculate the expression.
-
\(4 \times 72 \times 5\) Use properties of real numbers and mental math to calculate the expression.
-
\(43+62+17\) Use properties of real numbers and mental math to calculate the expression.
Study smarter with the SolutionInn App