Toot! TiX Total Users 16,700 23,100 39,800 Revenues $ 2,100,000 $ 1,880,000 $ 3,980,000 Engineering hours 13,600 9,600 23,200 Engineering cost $ 330,000 $ 450,000 $ 780,000 Administrative costs $ 1,671,600 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?

Answers

Answer 1

Answer:

Instructions are below.

Explanation:

First, we need to calculate the revenue proportion:

Toot!= 2,100,000/3,980,000= 0.53

TiX= 1,880,000/3,980,000= 0.47

Now, we can allocate administrative costs:

Toot!= 0.53*1,671,600= $885,948

TiX= 0.47*1,671,600= $785,652

Finally, the total, and unitary profit per product:

Toot!:

Revenues= 2,100,000

Engineering cost= (330,000)

Administrative costs= (885,948)

Total profit= $884,052

Unitary profit= 884,052/16,700= $52.937

TiX:

Revenues= 1,880,000

Engineering cost= (450,000)

Administrative costs= (785,652)

Total profit= $644,348

Unitary profit= 644,348/23,100= $27.894


Related Questions

Southern Rim Parts estimates its manufacturing overhead to be $416,000 and its direct labor costs to be $1,040,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $63,000 for Job 301, $88,000 for Job 302, and $165,000 for Job 303. For the year, actual manufacturing overhead was $409,000 and total direct labor cost was $836,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows:Work-in-process inventory $ 33,440Finished goods inventory 83,600Cost of goods sold 217,360Required:Prepare an entry to prorate the under- or overapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

Work-in-process  $700 (debit)

Finished goods $1,750 (debit)

Cost of goods sold  $4,550 (debit)

Overheads $7,000 (credit)

Explanation:

Southern Rim Parts estimated/ applied overheads are $416,000 and the actual overheads are $409,000.

Conditions :

If Applied Overheads > Actual Overheads, we have an over-applied situation

and

If Applied Overheads < Actual Overheads, we have an under-applied situation

Therefore,

Using the information of Southern Rim Parts, we have an over- applied situation of $7,000 ($416,000 - $409,000).

Allocation of the over- applied overheads of $7,000

Inventory/Category                 Total            Percentage           Allocation

Work-in-process inventory   $ 33,440               10%                         $700

Finished goods inventory     $83,600               25%                      $1,750

Cost of goods sold               $217,360               65%                     $4,550

Total                                      $334,400                                           $7,000

Journal entry to record the the over-applied overheads

Work-in-process  $700 (debit)

Finished goods $1,750 (debit)

Cost of goods sold  $4,550 (debit)

Overheads $7,000 (credit)

Below are several statements about internal controls.1. The components of internal control are built on the foundation of the ethical tone set by top management. 2. Once every three months, managers need to review operations to ensure that control procedures work effectively. 3. Collusion refers to the act of a single individual circumventing internal control procedures. 4. Detective control procedures are designed to detect errors or fraud that have already occurred, while preventive control procedures are designed to keep errors or fraud from occurring in the first place. 5. Fraud committed by top-level employees is more difficult to detect because those employees more often have the ability to override internal control features. 6. A good example of separation of duties would be having one person collect cash from customers and account for it, while having another person order inventory and maintain control over it. 7. Employee tips historically have been the most common means of detecting employee fraud. 8. Detective controls include reconciling the physical assets of the company with the accounting records and comparing actual performance of individuals or processes against their expected performance. 9. Effective internal controls and ethical employees ensure a company's success.Stae whether the answer to each statement is true or fasle.

Answers

Answer:

1. True

2. False

3. False

4. True

5. True

6. False

7. True

8. True

9. False

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.

An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

1. True: The components of internal control are built on the foundation of the ethical tone set by top management.

2. False: Once every three months, managers need to review operations to ensure that control procedures work effectively.

3. False: Collusion refers to the act of a single individual circumventing internal control procedures.

4. True: Detective control procedures are designed to detect errors or fraud that have already occurred, while preventive control procedures are designed to keep errors or fraud from occurring in the first place.

5. True: Fraud committed by top-level employees is more difficult to detect because those employees more often have the ability to override internal control features.

6. False: A good example of separation of duties would be having one person collect cash from customers and account for it, while having another person order inventory and maintain control over it.

7. True: Employee tips historically have been the most common means of detecting employee fraud.

8. True: Detective controls include reconciling the physical assets of the company with the accounting records and comparing actual performance of individuals or processes against their expected performance.

9. False: Effective internal controls and ethical employees ensure a company's success.

Cara, who is 42 years old, had some unexpected medical expenses during the year. To pay for these expenses (which were above the 10% of AGI threshold and claimed as itemized deductions on her tax return), she received a $10,000 distribution from her traditional IRA (she has only made deductible contributions to the IRA). Assuming her marginal ordinary income tax rate is 22%, what amount of taxes and/or early distribution penalties will Cara be required to pay on this distribution

Answers

Answer: $2,200 income tax; $1,000 early distribution penalty

Explanation:

The IRS allows for withdrawals from the IRA before retirement without penalty if the withdrawal is for unreimbursed medical expenses that do not exceed 10% of the person's AGI.

As the expenses exceeded the 10% AGI threshold , She will owe a penalty of 10% on the withdrawal;

= 10,000 * 10%

= $1,000

She will also have to pay her income tax on this.

= 10,000 * 22%

= $2,200

t the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes in account during the year. Shares authorized: 290,000. Shares issued: _______ (all shares were issued at $14 per share; $2,170,000 total cash collected). Treasury stock: 5,000 shares (repurchased at $18 per share). The treasury stock was acquired after a stock split was announced. Net income: $297,000. Dividends declared and paid: $165,000. Retained earnings beginning balance: $645,000. Required: 1. Complete the following tabulation: 2. Calculate the balance in the Additional paid-in capital account. 3. What is earnings per share (EPS)

Answers

Answer:

1. Required tabulation is the Shares Authorized, the Shares Issued and the Shares Outstanding

Shares Authorized = 290,000 shares

Shares Issued

= Total Cash Collected / Price per share

= 2,170,000 / 14

= 155,000 shares

Shares Outstanding

= Shares Issued - Treasury stock

= 155,000 - 5,000

= 150,000 shares

2. Additional paid in capital account

= Gain (loss) above par

Par value is $10 and Stock was sold for $14

= (14 - 10 ) * 155,000

= $620,000

3. Earnings per share

= Net Income/ Shares outstanding

= 297,000/150,000

= $1.98

Gina has $5,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high school in five years. Roughly how much more will Martha need to save for one-year's tuition to account for an annual rate of inflation of 3%

Answers

Answer

About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day

Starbucks is a national chain of gourmet cafes, which caters to coffee-drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business districts so they may better accommodate the commuters' needs. Starbucks sells their private brand of coffees, and also accompanied them with fresh baked goods. They have a synergy between their stores and their website, both of which help to maintain an advantage over competing local coffee shops. This is a description of Starbucks:

Answers

Answer:

yes this is a description of starbucks?

Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes

What is the nation?

Although the phrases nation, state, and country are sometimes used interchangeably, there is a distinction between them. A state is a self-governing political entity (notice the capital "S"). Country and State are both interchangeable terms. However, a nation is a closely-knit community of people who share a culture.

Starbucks is a national chain of gourmet cafes, which caters to coffee drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes

Therefore, Yes, Starbucks is described in this Starbucks is a national chain of gourmet cafes

Learn more about the nation here:

https://brainly.com/question/27126152

#SPJ5

Use the Keynesian cross to predict the impact on equilibrium GDP of a. An increase in government purchases. b. An increase in taxes. c. Equal-sized increases in both government purchases and taxes.

Answers

Answer:

An increase in government purchases

Explanation:

The Keynesian cross explains to us that fiscal policy has multiple impacts on income. The reason for this has been explained by many, according to consumption, that higher income is seen to lead to higher consumptions. Keynesian economics (KE) as an idea was developed before the aggregate demand/aggregate supply model was made popular.

The KE was explained using the expenditure-output approach which lays emphases on the total amount of spending in the economy

The use of a debit card is most like:

Answers

There’s not enough info to answer this question
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