What would be the selling price of one unit of model

Assignment Help Accounting Basics
Reference no: EM131563104

Question - Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs using three activity cost pools. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Information (on a per unit basis) related to three popular products at Njombe are as follows:

Activities

Activity Measure

Expected Activity

Estimated Overhead Cost

Machine setups

Number of setups

400

$150,000

Quality control

Number of inspections

1,500

$180,000

Other overhead

Machine hours

30,000

$480,000

 Information (on a per unit basis) related to three popular products at Njombe are as follows:

 

Model #19

Model #36

Model #58

Direct material cost

$400

$4540

$310

Direct labor cost

$810

$600

$220

Number of setups

2

3

1

Number of inspections

1

3

1

Number of machine hours

4

8

10

Under the traditional system, what would be the selling price of one unit of Model #36?

A. $2,536

B. $2,712

C. $4,080

D. $5,506

Reference no: EM131563104

Questions Cloud

Prepare complete repayment schedule for this issue : Face value of the bonds is $500 each, and matures in 5 years. Prepare a complete repayment schedule for this issue.
What problems might be encountered : What are the legal guidelines? What problems might be encountered?When is a warrant necessary and why?In what ways can a defense attorney attack search ?
How much would you be willing to pay for a put on this stock : How much would you be willing to pay for a put on this stock with the same maturity and exercise price?
Mathematical discovery of all time was compound interest : Albert Einstein once remarked that the greatest mathematical discovery of all time was compound interest.
What would be the selling price of one unit of model : Njombe Corporation manufactures a variety of products. Under the traditional system, what would be the selling price of one unit of Model #36
Find the dimensions of the screen : The width of a rectangular TV screen is 22.9 in. longer than the height. If the diagonal is 60.0 in.
What was her internal rate of return over five year period : What was her internal rate of return over the five year period?
The law enforcement executive : Why do you feel discretion is the most important in regards to the law enforcement executive?
What was the net present value of his investment : Required Rate of return What was the net present value (NPV) of his investment?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd