Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies.
For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:
| Activity Cost Pool (Activity Measure) | Total Cost | Total Activity | |||
| Customer deliveries (Number of deliveries) | $ | 440,000 | 5,000 | deliveries | |
| Manual order processing (Number of manual orders) | 438,000 | 6,000 | orders | ||
| Electronic order processing (Number of electronic orders) | 210,000 | 10,000 | orders | ||
| Line item picking (Number of line items picked) | 902,000 | 440,000 | line items | ||
| Other organization-sustaining costs (None) | 610,000 | ||||
| Total selling and administrative expenses | $ | 2,600,000 | |||
Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $31,000 to buy from manufacturers):
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Activity |
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| Activity Measure | University | Memorial |
| Number of deliveries | 12 | 29 |
| Number of manual orders | 0 | 42 |
| Number of electronic orders | 11 | 0 |
| Number of line items picked | 140 | 230 |
Required:
1. Compute the total revenue that Worley would receive from University and Memorial.
2. Compute the activity rate for each activity cost pool.
3. Compute the total activity costs that would be assigned to University and Memorial.
4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $31,000 cost of goods sold that Worley incurred serving each hospital.)
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Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $31,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)
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In: Accounting
2020 $xx,xxx.xx
2021 $xx,xxx.xx
2022 $xx,xxx.xx
2023 $xx,xxx.xx
Test Data: 2020, 43897.00
Program is in c++.
In: Computer Science
The presence of Corona Virus Disease 2019 (COVID-19) in Malaysia, is part of the COVID-19 pandemic, was first reported in January 2020. Due to that, Malaysia Movement Control (MCO) is a cordon sanitaire implemented as a preventive measure by the federal government of Malaysia in response to the COVID-19 pandemic in the country on 18 March 2020. The order was commonly referred to in local and international media as a "lockdown". As a University student in network especially in wireless transmission classes, answer the following questions:
2. Discuss mobile experience during the COVID-19 pandemic, the top two mobile networks in Malaysia due to strong performance in their networks at this time. (10marks)
In: Physics
The future in the building toy market held both opportunity and uncertainty, with new threats emerging from increased control over licensing agreements, loss of trademark protection and competition fromTnew and existing sources. It was important for the LEGO management team to
(Question) "identify where to expand current product lines in order to help the company formulate a strategy to ensure that LEGO"
(which country should be the next one to expansion and why)
FYI.
At this moment, there are already 48 countries
In: Operations Management
On September 1, 2020, Peter Corporation acquired Darcy Enterprises for a cash payment of $ 850,000. At the time of purchase, Darcy’s statement of financial position showed assets of $ 890,000, liabilities of $ 450,000, and owner’s equity of $ 440,000. The fair value of Darcy’s assets is estimated to be $ 1,150,000. Assume that Peter is a public company and the goodwill was allocated entirely to one cash-generating unit (CGU). Two years later, the CGU’s carrying amount is $ 3,450,000; its value in use is $ 3,380,000; the fair value less costs to sell is $ 2,980,000.
In: Accounting
Design an interview plan for an accounting job: This plan will describe every aspect of preparing and conducting the interviews for this job opening. It should be at least 1 page in length and cover everything from developing the interview questions to the room set up for the interviews. Think about who, what, why, when, where, and how. You need to describe how you will prepare and conduct the interviews in addition to giving a sample (no more than 5) of the questions you will ask.
In: Accounting
Skysong Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $44,268 3/1/16 17 years Patent B $17,040 7/1/17 10 years Patent C $22,560 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $247,000 were incurred during the year. 2. Patent D was purchased on July 1 for $37,848. This patent has a useful life of 91/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2020. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,200 2022 2,200 2023 2,200 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Click here to view factor tables Correct answer iconYour answer is correct. Compute the total carrying amount of Skysong’ patents on its December 31, 2019, balance sheet. Total carrying amount $enter the Total carrying amount in dollars 62106 eTextbook and Media New
attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Compute the total carrying amount of Skysong' patents on its December 31, 2020, balance sheet. Total carrying amount $enter the Total carrying amount in dollars
In: Accounting
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In: Accounting
The MBA 802 Company reported 2018 net income of $9 million and depreciation of $3.5 million. The top part of the MBA802’s 2017 and 2018 balance sheets is listed as follows (in millions of dollars).
2017 2018
Current assets:
Cash $18 $30
Accounts receivable 20 24
Inventory 10 11
Total Current Assets: $48 $65
Current Liabilities:
Accrued wages and taxes $ 5 $11
Accounts payable 25 29
Other Accrued Liabilities 18 25
Total Current Liabilities: $48 $65
What is the 2018 net cash flow from operating activities for the MBA802 Company? (Display the answer as noted below - If you calculated the answer as being $12.3 million, input the answer in the following format 12.3)
In: Accounting
Silkworm Inc is a manufacturer of construction equipment, machinery and engines. It also sells financial services. You anticipate a substantial increase in its machinery sales. You have the following data.
| US $'000 | 2018 | 2019 |
| Net sales | 39,867 | 57,392 |
| COGS | 30,367 | 43,578 |
| SG&A | 4,248 | 5,203 |
and thus in percentage terms:
| % of sales | 2018 | 2019 |
| Net sales | 100 | 100 |
| COGS | 76.2 | 75.9 |
| SG&A | 10.7 | 9.1 |
a) Estimate the fixed and variable components of COGS and SG&A
in 2019. What would be your estimate of operating profits for 2020
if predicted net sales for 2020 were US$ 100,000,000? Briefly
comment on whether your analysis makes sense. What are the
advantages and disadvantages of this approach?
In: Accounting