The accounts department investigates all applications from new customers for creditsales. It has incurred a cost of £2,500 in January to investigate 100 customerapplications. The accounts department has apportioned the cost as £1,250 each todivisions A and B because each has the same level of sales. The manager of divisionA has claimed that this is unfair because she only asked for 20 investigations whiledivision B asked for 80 investigations. Which of the following statements is/arecorrect?• (i) Activity-based costing would charge £500 to division A and £2,000 todivision B.●(ii) Activity-based costing forecasts that the customer investigation costs forFebruary will be £500 for division A and £2,000 for division B.(iii) Activity-based costing makes managers more aware of the costs incurredby their operations.●a) (i) and (iii) onlyb) (i) and (ii) onlyc) (i), (ii) and (iii)d) (ii) and (iii) only

ABC costing means Activity based costing.It is used to allocation of manufacturing overhead to…

Answered: The accounts department investigates…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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T, and U, and pays for general advertising that benefits all departments. Advertising expense totaled $82,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations. Round the answer to the nearest whole dollar, i.e. 17,525.69 would be 17,526): Sales per department Department Sales S $ 106,000 T 215,250 U 149,150 Total $ 470,400
The audit firm receives 40% of its total revenue from one audit client. this is an example of: Select one: O a. Familiarity threat. B) Self-review threat. C) Intimidation threat. d) Self-interest threat.
Each day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company’s actual performance. Description Weight Number of Errors Complaints reopened 3 130 Damaged packages 10 19 International 1 107 Invoice adjustments 1 282 Late pickup stops 3 200 Lost packages 10 3 Missed proof of delivery 1 28 Right date late 1 751 Traces 3 111 Wrong day late 5 16 Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places. Service Quality Indicator (SQI): %
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Jerry, Incorporated 6 Kate Company 60 3,000 460 4 50 15 3 190 4 es Number of sales calls Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Deliveries Cost Driver and Rate $800 per visit 280 per order. 440 per order Order processing 240 per return and $3 per unit returned 83,000 per month. Sales returns Sales salary Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Moorcroft's assistant controller suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible. Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections? Moorcroft Company Schedule of Expected Collections from Customers Sales April May June $ 173420 $ 191400 $ i 86710 i $ 173420 299000 330000 398000 $ i 340500 $ 230840 99000 32292 202932
Help please... also for 2b.) $(41,000)
Pound Industries’ customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 15,700 calls and incurred costs of $329,700. If 3,150 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division should amount to which of the following: A. $329,700. B. $66,150. C. $21. D. $263,550. E. $0.
The Robotics Manufacturing Company operates an equipment repair business where emergency jobs arrive randomly at the rate of three jobs per 8-hour day. The company's repair facility is a single-server system operated by a repair technician. The service time varies, with a mean repair time of 2 hours and a standard deviation of 1.5 hours. The company's cost of the repair operation is $28 per hour. In the economic analysis of the waiting line system, Robotics uses $35 per hour cost for customers waiting during the repair process. a. What are the arrival rate and service rate in jobs per hour? b. The company is considering purchasing a computer-based equipment repair system that would enable a constant repair time of 2 hours. For practical purposes, the standard deviation is 0. Because of the computer-based system, the company's cost of the new operation would be $32 per hour. The firm's director of operations rejected the request for the new system because the hourly cost $4 higher and…
help me
A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Cost of Quality Report Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $fill in the blank 1 fill in the blank 2 % fill in the blank 3 % Appraisal fill in the blank 4 fill in the blank 5 fill in the blank 6 Internal failure fill in the blank 7 fill in the blank 8 fill in the blank 9 External failure fill in the blank 10 fill in the blank 11 fill in the blank 12 Totals $fill in the blank 13…

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