Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. It Annie's assumes its mobile sales variable overhead includes $ 0 . 1 5 per mile for the pickup truck, what is the total

4. It Annie's assumes its mobile sales variable overhead includes $0.15 per mile for the pickup truck, what is the total variable overhead cost assigned to this job?

5. Assume Annie's has two fixed overhead costs pools. The first pool includes in-store fixed manufacturing overhead and its allocate base is number of servings produced per year. The second pool includes the pickup truck's fixed operating costs and the mobile s equipment depreciation and its allocation base is the number of mobile servings sold per year.

a. What is the overhead rate in each of these two cost pools?

b. How much total fixed overhead cost would be allocated to this job from these two cost pools?

6. What is the total estimated job cost for the Memorial Day picnic?

7. Assume Annie's bids $1,080 for this job (or $4.50 per serving). If it wins the bid, how much of the total bid receipts:

a. Will be recorded as gross sales revenue?

b. Will be paid to governing authorities as sales tax?

c. Will be paid to Annie's Homemade corporate headquarters?

d. Will be disbursed to the company that processes the credit card payment?

e. Will be recorded as net sales revenue?


Step by Step Solution

There are 3 Steps involved in it

Step: 1

4 Total Variable Overhead Cost If Annies assumes its mobile sales variable overhead includes 015 per mile for the pickup truck and we know the distance traveled for this job is for instance 100 miles ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

In a system with light damping (c Answered: 1 week ago

Answered: 1 week ago