1. when the number of wallets to be sold is 528,000 and the number of handbags to be sold is 280, 000, the direct materials to be purchased is $ , the direct labor cost budget is $ and the cost of goods sold budget is $ . 2. when the number of wallets to be sold is 700,000 and the number of handbags to be sold is 108, 000, the direct materials to be purchased is $ , the direct labor cost budget is $ and the cost of goods sold budget is $ . 3. when the number of wallets to be sold is 280,000 and the number of handbags to be sold is 528, 000, the direct materials to be purchased is $ , the direct labor cost budget is $ and the cost of goods sold budget is $ . 4. why is the budget for direct materials to be purchased different than the cost of direct materials put into production? the cost of materials placed into production is always more than the materials to be purchased the cost of materials placed into production is always less than the materials to be purchased the cost of leather is more than the cost of lining

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400

Explain the relationship between consumers and producers in economic growth and activity