Dedication Essay

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According to the cost allocation methods used in the company's accounting system that are described in the Production Cost Report, if a company employs 100 PATs at a total labor cost of $8,000,000 (including wages, fringes, incentives, overtime, training, and severance expenses), assembles and ships 700,000 entry-level cameras and 300,000 multi-featured cameras over the course of a year, has revenues of $84 million from sales of entry level cameras, and revenues of $84 million from the sale of multi-featured cameras, then the total annual labor costs allocated to the assembly and shipment of entry-level cameras and the labor costs per entry-level camera assembled and shipped, respectively, will be | | | $4,000,000 and $5.71. | | | $5,600,000 and $12.00. | | | $5,600,000 and $8.00. | | | $2,400,000 and $8.00. | | | None of these. | If in a given year a company spends $3 million on new product development, design, and engineering for its entry-level camera line; $6 million on new product development, design, and engineering for its multi-featured camera line; assembles and ships 1,000,000 entry-level cameras and 200,000 multi-featured cameras, then the company’s production costs for new product development expenditures for entry-level cameras would be | | | capitalized and depreciated over the next five years, thus producing an average cost per entry-level camera of $0.60 annually for each of the next five years | | | $5.00 per camera | | | $30.00 per camera | | | $3.00 per camera | | | $7.50 per camera | Given the following Financial Statement data: Income Statement Data | Full Year(in 000s) | Sales Revenues | $200,000 | Operating Profit | 57,600 | Net Income | $37,000 | | | Balance Sheet Data | | Total Current Assets | $70,000 | Total Current Liabilities | 44,000 | Total Assets

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