ORDER # | 100187 |
PAPER TYPE | MATH PROBLEMS |
WRITING LEVEL | UNDERGRADUATE |
WRITING STYLE | APA |
# OF SOURCES | 2 |
# OF PROBLEMS | 2 |
GSU Management and Cost Accounting Questions Instructions: Please attempt a both questions.
Ensure that all workings are shown where necessary including all steps.
Assignment due date and time is April 9, 2021 at 11:59PM
Late submissions or submission via instructor email will not be accepted.
I need support with this Mathematics question so I can learn better.
1.The Oak Company’s copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of 4,700,000 copies:
Salaries (fixed)$94,000
Employee benefits (fixed)11,750
Depreciation of copy machines (fixed)9,400
Utilities (fixed)4,700
Paper (variable, one cent per copy)47,000
Toner (variable, one cent per copy)47,000
The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.
Assuming 4,470,000 copies were made during the year, 2,350,000 for sales and 2,120,000 for administration, calculate the copy department costs allocated to sales and administration.
2.Richetti Metal Works received an offer from a big-box retail company to purchase 2,640 metal outdoor tables for $192 each. Richetti Metal Works accountants determine that the following costs apply to the tables:
Direct material $112
Direct labor 44
Manufacturing overhead 61
Total $217
Of the $61 of overhead, $12 is variable and $49 relates to fixed costs. The $49 of fixed overhead is allocated as $0.98 per direct labor dollar.
(A) What will be the real effect on profit if the order is accepted?
(B) The profit will decrease or increase? by what $?