Phoenix Company Makes Custom Covers for Air Conditioning Units for Homes

question 31

Essay

Phoenix Company makes custom covers for air conditioning units for homes and businesses.The company uses an activity-based costing system for its overhead costs.The company has provided the following data concerning its annual overhead costs and its activity cost pools:
$$\begin{array} { | l | r | } \hline \text { Overhead Costs: } & \\\hline \text { Production overhead } & \$ 100,000 \\\hline \text { Office expenses } & 50,000 \\\hline \text { Total } & \$ 150,000 \\\hline\end{array}$$
Distribution of Resource Consumption:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Activity Cost Pools }$
$\begin{array} { | l | r | r | r | r | } \hline & \text { Making Cover } & \text { Job Support } & \text { Other } & \text { Total } \\\hline \text { Production overhead } & 40 \% & 42 \% & 18 \% & 100 \% \\\hline \text { Office expenses } & 12 \% & 60 \% & 28 \% & 100 \% \\\hline\end{array}$
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.The amount of activity for the year is as follows:
$$\begin{array} { | l | r | } \hline \text { Activity Cost Paol } & \text { Annual Activity } \\\hline \text { Making covers } & 2,500 \text { yards } \\\hline \text { Job support } & 200 \text { jobs } \\\hline \text { Other } & \text { Not applicable } \\\hline\end{array}$$
Required:
a)Prepare the first-stage allocation of overhead costs to the activity cost pools by filling in the table below:
$$\begin{array} { | l | l | l | l | l | } \hline & \text { Making Covers } & \text { Job Support } & \text { Other } & \text { Total } \\\hline \begin{array} { l } \text { Production } \\\text { overhead }\end{array} & & & & \\\hline \text { Office experse } & & & & \\\hline \text { Total } & & & & \\\hline\end{array}$$
b)Compute the activity rates (i.e.,cost per unit of activity)for the Making Covers and Job Support activity cost pools by filling in the table below:
$$\begin{array} { | l | l | l | } \hline & \text { Making Covers } & \text { Job Support } \\\hline \text { Production overhead } & & \\\hline \text { Office expense } & & \\\hline \text { Total } & & \\\hline\end{array}$$
c)Prepare a report in good form of a job that involves making 50 yards of covers and has direct materials and direct labour cost of $1,500.The sales revenue from this job is $2,500.

Understand the policies and significance of the Northwest Ordinance of 1787.

Recognize the challenges and responses related to American navigation rights and economic policies under the Articles of Confederation.

Comprehend the role and responsibilities conferred by the Constitution on different branches of government and specific positions.

Reflect on key concepts like the large republic advantage theory, major Constitutional compromises, and foundational fiscal policies.

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Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer.

Issuance of Bond

The process by which a bond issuer offers bonds to investors to raise capital, typically with terms outlining repayment and interest.

Par Value

Par value is the nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Premium on Bonds Payable

This is the amount by which the selling price of a bond exceeds its face value or principal amount, typically because the bond's interest rate is higher than the current market rate.