ull T-Mobile? 8:49 PM * 67%- Done 2 of 20 11-13: Use the ollowing contribution m

Question

ull T-Mobile? 8:49 PM * 67%- Done 2 of 20 11-13: Use the ollowing contribution margin stument Direct direct labor dolars as the cost driver 11.Compte allocated fined forprodak $2.00 30,000 550,000 D. $60,000 E. $110,000 12. If you drop product A in the short term, prolfit wil by 530,000 decrease by $20,000 C. decrease by 510,000 D incresse by 510,000 ?.increase by 53000 13. If you drop product A in the long termpro will A decrease by $30,000 B decrease by $20,000 increase by S10000 E. increase by $20,000 14. Which of the folowing are reasonable ways to deal with encess sapply B. Increase advertising C Reduce prices B and C only 15. A.$2.400 $15,000 D. $29,300 E. Not mough indormation-need to know the total umber of units of product A

Explanation / Answer

Q11. Answer is B. $ 30,000 Explanation: Total Fixed cost: 50,000 Total direct labour cost: 25000 OH rate as % of labour cost 200% on labour cost Product A: 15,000 *200% = $30,000 Q12. Answer is B. Decrease by $ 20,000 Explanation: Loss in sales revenue 60,000 Less: Savings in variable cost -40000 Loss of profit 20000 Q13. Answer is D. Increase in profits $ 10,000 Explanation: Loss in Sales revenue 60000 Less: Ssavings in Variable cost -40000 Less: Saving in Fixed cost -30000 Increase in income 10000 Q14. Answer is D. All the above. Q15. Answer is C. $ 19400 Explanation STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Total Expected Activity ACTIVITY COST POOL Overheads Activity Rate Activity 1 6,000 50 120 Activity 2 2,500 25 100 Activity 3 21,000 42 500 Overhead assigned to product A: Activity 1(20*120): 2400 Activity 2(20*100): 2000 Activity 3(30*500): 15000 Total Activity 19400

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.