Compute the overhead cost attributable to the office

Assignment Help Cost Accounting

Reference no: EM13840082

Data
Manufacturing overhead	$500,000
Selling and administrative overhead	$300,000

	Assembling Units	Processing Orders	Supporting Customers	Other
Manufacturing overhead	50%	35%	5%	10%
Selling and administrative overhead	10%	45%	25%	20%
Total activity	1,000	250	100
	units	orders	customers

PMA orders:
Customers	1	customer
Orders	4	orders
Number of alternators ordered in total	80	units
Selling price	$595
Direct materials	$180
Direct labor	$50

Perform the first stage allocations

Compute the activity rates

Compute the overhead cost attributable to the OfficeMart orders

Determine the customer margin for the OfficeMart orders under Activity-Based Costing

Determine the product margin for the OfficeMart orders under a traditional cost system

Reference no: EM13840082

Questions Cloud

What is typically true of corporate dividend payout rates : What is typically true of corporate dividend payout rates in the early stages of an indus- try life cycle? Why does this make sense? If the nominal interest rate is 5% and the inflation rate is 3%, then what is the real interest rate?

A three-month call option is the right to buy stock : A three-month call option is the right to buy stock at $20. Currently the stock is selling for $22 and the call is selling for $5. You are considering buying 100 shares of the stock ($2,200) or one call option ($500). a) If the price of the stock ris..

What is its degree of operating leverage dol : Finance Corp has fixed costs of $7 million and profits of $4 million. What is its degree of operating leverage (DOL)? Choose an industry and identify the factors that will determine its performance in the next three years. What is your forecast for p..

What is the current share price : Apocalyptica Corp. pays a constant $8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current shar..

Compute the overhead cost attributable to the office : Compute the overhead cost attributable to the Office Mart orders - Determine the customer margin for the OfficeMart orders under Activity-Based Costing

What will the price be in three years : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require a return of 11 percent on The Jackson-Timberlak..

The jackson-timberlake wardrobe co : The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require a return of 11 percent on The Jackson-Timberlak..

What monetary and fiscal policies might be prescribed : What monetary and fiscal policies might be prescribed for an economy in a deep recession? If you believe the U.S. dollar is about to depreciate more dramatically than do other investors, what will be your stance on investments in U.S. auto producers?

User Account

All Pages