Kozlov Corporation Has Provided the Following Data from Its Activity-Based

question 21

Multiple Choice

Kozlov Corporation has provided the following data from its activity-based costing system: $$\begin{array} { l l l } \text { Activity Cost Pool } & \text { Total Cost } & \text { Total Activity } \\\text { Assembly } & \$ 942,480 & 66,000 \text { machine hours } \\\text { Processing orders } & \$ 85,050 & 1,800 \text { orders } \\\text { Inspection } & \$ 126,854 & 1,820 \text { inspection hours }\end{array}$$ The company makes 430 units of product A21W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.
- According to the activity-based costing system, the total overhead cost of producing 430 units of A21W is:

• A) $13,338.20
• B) $11,121.40
• C) $12,440.20
• D) $12,215.70
• E) $32,370.00

Analyze the effects of technological advancements on market supply, prices, and firm profits.

Distinguish between short-run and long-run market adjustments in response to changes in demand and supply.

Evaluate the efficiency of competitive price-taker markets in long-run equilibrium.

Comprehend the distinction between economic profit and accounting profit in competitive markets.

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for products or services that have been delivered but not yet paid for.

Average Collection Period

A financial metric that calculates the average number of days it takes for a company to receive payments from its customers.

Net Sales

Income generated from sales once returns, allowances for damaged or missing items, and discounts have been subtracted.

Accounts Receivable

Represents the money owed to a business by its customers for goods or services delivered but not yet paid for.