Reference no: EM132743725
Accounting Question - A boat builder has two main departments - Fishing Trawler Dept & Luxury Yacht Dept. The marketing & promo budget for June 2017 to May 2018 is being debated.
The cost pool is made up as follows:
1. AGENCY COMMISSIONS 10% OF SALES VALUE 1,750,000
2. PRINTED MEDIA COSTS $150,000 150,000
3. MULTI MEDIA ADS $350,000 350,000
4. BROCHURES AND USER HANDBOOKS $100,000 100,000
5. CORPORATE GIFTS $50,000 50,000
COST POOL $650,000 + AGENCY COST
*Show how this cost Pool will be allocated to each department?
Sales for each department are as follows:
1. TRAWLERS $2.5 M
2. LUXURY YATCH $15 M
$17.5 M
Required -
1. Prepare the activity based cost allocation schedule in good format.
2. Make reasonable assumptions as to the cost driver.
3. Show the schedule and related workings on this worksheet.
Explain what is the required rate of return on the project
: Explain What is the required rate of return on the project if its beta is 1.80? (Do not round intermediate calculations. Enter your answer as a whole percent.)
|
What is cost of common equity
: Using the discounted cas flow approach (Gordon model), what is its cost of common equity?
|
What is the present value of the lease payments
: If the discount rate is 14%, what's the present value of the lease payments? The response must be typed, double spaced, times new roman, font size 12.
|
Which situation will fall under the customer perspective
: Which situation will fall under the customer perspective on the balanced scorecard of Philippine Airlines? customer grievances decreases by 11%.
|
Prepare the activity based cost allocation schedule
: A boat builder has two main departments - Fishing Trawler Dept & Luxury Yacht Dept. Prepare the activity based cost allocation schedule
|
What is the 2-year short rate
: You check the spot curve and find that the 1-year spot rate is 9.48%, the 2-year spot rate is 7.19%, the 3-year spot rate is 7.86%, the 4-year spot rate is 6.23
|
Describes the expected rate of return on the new venture
: Describes the inter relations between the expected rate of return on the new venture, the firm's cost of capital, and the department's present ROI?
|
Should the hr compensation specialist favour internal equity
: In making strategic pay policy decisions in a company, should the HR compensation specialist favour internal or external equity in wage and salary rates among.
|
What is the 4-year short rate
: You believe in the liquidity preference theory and assume that there is a constant liquidity premium of 2.50%.
|