Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dih 8,000 dih 5 setups 10,000 dih 24,000 dih 15 setups Total activity-base usage 12,000 dlh 32,000 dih 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20 Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were as follows: į, 600 caravans was manufactured at a cost of $15,000 each. ii. 500 caravans were sold for $20,000 each. iii. Cash was collected on 475 of the caravans sold. What was the reported profit for the year ended 30 June 2019 if revenue was recognized when cash was received? a. $0 b. $5,000,000 c. $3,000,000 d. $2,500,000 e. $2,375,000
Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dih 8,000 dih 5 setups 10,000 dih 24,000 dih 15 setups Total activity-base usage 12,000 dlh 32,000 dih 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20 Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were as follows: į, 600 caravans was manufactured at a cost of $15,000 each. ii. 500 caravans were sold for $20,000 each. iii. Cash was collected on 475 of the caravans sold. What was the reported profit for the year ended 30 June 2019 if revenue was recognized when cash was received? a. $0 b. $5,000,000 c. $3,000,000 d. $2,500,000 e. $2,375,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage
quantity for each project by activity is as follows:
Fabrication Assembly Setup
Basic
Deluxe
2,000 dih 8,000 dih 5 setups
10,000 dih 24,000 dih 15 setups
Total activity-base usage 12,000 dlh 32,000 dih 20 setups
Each product is budgeted for 2,500 units of production for the year.
What is the activity-based factory overhead per unit for the Deluxe kayak?
a. $154.54
b. $100.00
c. $41.80
d. $158.20
Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2019 were as
follows:
į, 600 caravans was manufactured at a cost of $15,000 each.
ii. 500 caravans were sold for $20,000 each.
iii. Cash was collected on 475 of the caravans sold.
What was the reported profit for the year ended 30 June 2019 if revenue was recognized
when cash was received?
a. $0
b. $5,000,000
c. $3,000,000
d. $2,500,000
e. $2,375,000
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