PROBLEM 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, L07-4, L07-5] Smoky Mountain Corporation makes two types of hiking boots—Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit ....... Direct materials per unit ...... Direct labor per unit ........ Direct labor-hours per unit ............ Estimated annual production and sales ..... $140.00 $72.00 $24.00 2.0 DLHS 20,000 units $99.00 $53.00 $12.00 1.0 DLHs 80,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead ........ Estimated total direct labor-hours .............. $1,980,000 120,000 DLHs Required: Using Exhibit 7-13 as a guide, compute the product margins for the Xtreme and the Path- finder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activ- ity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs): Activities and Activity Measures Supporting direct labor (direct labor-hours) ... Batch setups (setups) ... Product sustaining (number of products) .... Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total $ 783,600 40,000 80,000 120,000 495,000 200 100 300 602,400 99,000 NA NA NA $1,980,000 Other .. Total manufacturing overhead cost ........ Using Exhibit 7-11 as a guide, compute the product margins for the Xtreme and the Path- finder products under the activity-based costing system. 3. Using Exhibit 7-14 as a guide, prepare a quantitative comparison of the traditional and activity-based cost assignments. Explain why the traditional and activity-based cost assign- ments differ.
26) In the Republic of Scarbonia, the market for widgets is "perfectly competitive". This means that, in Scarbonia: a) b) the price of widgets is set in the market, by supply and demand there are very few sellers of widgets, because of barriers to entry. the widgets made by different manufacturers have unique characteristics. some widget manufacturers, because they are bigger and better known than the more for their widgets d) others, can charge
53. This reaction was monitored as a function of time: A — B+C A plot of In[A] versus time yields a straight line with slope -0.0045/s. a. What is the value of the rate constant (k) for this reaction at this temperature? b. Write the rate law for the reaction. c. What is the half-life? d. If the initial concentration of A is 0.250 M, what is the concentration after 225 s?
11.43 ... A box of negligible mass rests at the left end of a 2.00-m, 25.0-kg plank (Fig. P11.43). The width of the box is 75.0 cm, and sand is to be distributed uniformly throughout it. The center of gravity of the nonuniform plank is 50.0 cm from the right end. What mass of sand should be put into the box so that the plank balances horizontally on a fulcrum placed just below its midpoint? Figure P11.43 K 75.0 cm Center of gravity Sandbox of plank 50.0 cm
EXERCISE 2-13 Traditional and Contribution Format Income Statements [LO2-6] The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount $150,000 $750 $50 Total sales revenue .............. Selling price per pair of skis ...... Variable selling expense per pair of skis ........ Variable administrative expense per pair of skis Total fixed selling expense. Total fixed administrative expense .... Beginning merchandise inventory Ending merchandise inventory ...... Merchandise purchases ... $10 $20,000 $20,000 $30,000 $40,000 $100,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (State this figure in a single dollar amount per pair of skis.)
31.28. An L-R-C series circuit is constructed using a 175-22 resistor, a 12.5-F capacitor, and an 8.00-mH inductor, all con- nected across an ac source having a variable frequency and a voltage amplitude of 25.0 V. (a) At what angular frequency will the impedance be smallest, and what is the impedance at this fre- quency? (b) At the angular frequency in part (a), what is the maxi- mum current through the inductor? (c) At the angular frequency in part (a), find the potential difference across the ac source, the resistor, the capacitor, and the inductor at the instant that the cur- rent is equal to one-half its greatest positive value. (d) In part (c), how are the potential differences across the resistor, inductor, and capacitor related to the potential difference across the ac source?
A motorcyclist heading east through a small Iowa city accelerates after he passes the signpost marking the city limits. His acceleration is a constant 4.0 m/S2. At time t = 0 he is 5.0 m east of the signpost, moving east at 15 m/s. (a) find his position and velocity at time t = 2.0 s. (b) Where is the motorcyclist when his velocity is 25 m/s?