Question
Ashley Limiteds overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000. Machining works 4,000 hours a year, 500 inspections occur each
Ashley Limiteds overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000. Machining works 4,000 hours a year, 500 inspections occur each year, and 1,000 packing order occur each year. Information on the companys two products are as follows:
Theta Beta
Machining hours 1,000 3,000
Inspections 100 400
Packing orders 350 650
Direct labor hours 1,700 1,800
How much overhead is allocated to Beta using a single overhead rate (based on direct labor hours) and using ABC, respectively?
| a. | $340,000 and $360,000
| |
| b. | $340,000 and $175,000
| |
| c. | $360,000 and $175,000
| |
| d. | $360,000 and $525,000
|
As the CFO of an insurance company, you have just agreed to pay Rebecca Smith a sum assured. The sum assured provides for Rebecca to receive $5,000 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 10%, what is the value of the sum assured to Rebecca today?
| Type of Cash Flow | Periods | Interest Rate | Factor | ||
| PV of $1 | 5 | 10% | 0.6209 |
| |
| FV of $1 | 5 | 10% | 1.6105 |
| |
| PV ordinary annuity | 5 | 10% | 3.7908 |
| |
| FV ordinary annuity | 5 | 10% | 6.1051 |
| |
| PV annuity due | 5 | 10% | 4.1699 |
| |
| a. | $18,954
| |
| b. | $15,523
| |
| c. | $20,849
| |
| d. | $30,526
|
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Using Microcomputers In Managerial Accounting
Authors: George Hildebrand
1st Edition
0938188275, 978-0938188278
