Business, 13.03.2020 05:36, vlactawhalm29
Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed and labeled athletic wear and sells its products through catalog sales and retail outlets. While Kragan has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling costs have traditionally been assigned to Kragan’s product lines at a rate of 70% of direct materials costs. Its direct materials costs for the month of March for Kragan’s "high-intensity" line of athletic wear are $405,000. The company has decided to extend activity-based costing to its selling costs. Data relating to the "high-intensity" line of products for the month of March are as follows.
Activity Cost Cost Drivers Overhead Number of Cost Drivers
Pools Rate Used per Activity
Sales commissions Dollar sales $0.05 per dollar sales $900,000
Advertising—TV Minutes $300 per minute 250
Advertising—Internet Column inches $10 per column inch 2,000
Catalogs Catalogs mailed $2.50 per catalog 60,000
Cost of catalog sales Catalog orders $1 per catalog order 9,000
Credit and collection Dollar sales $0.03 per dollar sales 900,000
Compute the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March (1) using the traditional product costing system (direct materials cost is the cost driver), and (2) using activity-based costing.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 03:40, levicorey846
2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.
Answers: 2
Business, 22.06.2019 21:20, dorianhenderson987
Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u. s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.
Answers: 3
Business, 23.06.2019 02:40, emma2827
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. the seller announced that the highest bid in excess of $9,500 will be accepted. assume that the competitor's bid x is a random variable that is uniformly distributed between $9,500 and $15,500. suppose you bid $12,000. what is the probability that your bid will be accepted?
Answers: 2
Do you know the correct answer?
Exercise 4-10 (Video) (Part Level Submission) Kragan Clothing Company manufactures its own designed...
Questions in other subjects:
