Harribo Inc. has two departments : Department A and Department B. Each department has considered renting...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Harribo Inc. has two departments : Department A and Department B. Each department has considered renting a plane to use to travel around the US and increase its business. If Department A rents the airplane itself, it will use 1500 hours for the year. Department B plans to use the plane for 2500 hours for the year. Renting the plane for the entire year will cost Harribo $14,000,000 If each department rents the airplane by itself, the hourly rate is $5,000 /hour. 1) What is the discounted price for Department A and B going together to rent the plane for the year? 2) If Harribo allocates the cost of the plane using the Stand Alone Method, how much of the cost is allocated to Department A? You should round to 3 decimal places when calculating 3) If Harribo uses the Incremental Cost Method and Department B is the primary user, how much of the cost is allocated to Department A? Harribo Inc. has two departments : Department A and Department B. Each department has considered renting a plane to use to travel around the US and increase its business. If Department A rents the airplane itself, it will use 1500 hours for the year. Department B plans to use the plane for 2500 hours for the year. Renting the plane for the entire year will cost Harribo $14,000,000 If each department rents the airplane by itself, the hourly rate is $5,000 /hour. 1) What is the discounted price for Department A and B going together to rent the plane for the year? 2) If Harribo allocates the cost of the plane using the Stand Alone Method, how much of the cost is allocated to Department A? You should round to 3 decimal places when calculating 3) If Harribo uses the Incremental Cost Method and Department B is the primary user, how much of the cost is allocated to Department A?
Expert Answer:
Answer rating: 100% (QA)
1 Discounted Price for Departments A and B Going Together Department A hourly rate 5000 per hour Dep... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Company A and Company B each have a $ 10,000 bond outstanding. Required: a. If both companies bonds are due in ten years, what factor(s) might make the bond market value the Company A bond at an...
-
The IT department allocates indirect costs to user departments on the basis of CPU time at the rate of $2000 per second. For the first quarter, the two heaviest-use departments logged 900 and 1300...
-
Stand up two plane mirrors so they form a 90o angle as in Fig. 23-55. When you look into this double mirror, you see yourself as others see you, instead of reversed as in a single mirror. Make a...
-
Raider Company manufactures and sells multiple products. The traditional costing system allocates overhead costs based on direct labor hours, while the company is considering transitioning to an...
-
The units of an item available for sale during the year were as follows: There are 36 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the...
-
a. An analysis of NTI's insurance policies shows that $2,950 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,960 are available at year-end. c. Annual...
-
A cloth manufacturer finds that 1 in every 400 shirts produced is faded. Find the probability that (a) the first faded shirt is the eighth item produced, (b) the first faded shirt is the first,...
-
Suppose 100 cars will be offered on the used-car market, 50 of them good cars, each worth $10,000 to a buyer, and 50 of them lemons, each worth $2,000. a. Compute a buyer's maximum willingness to pay...
-
A heat pump maintains a dwelling at 68F. When operating steadily, the power input to the heat pump is 10 HP, and the heat pump receives energy by heat transfer from 55F well water at a rate of 500...
-
Knowing that the tension in wire BD is 300 lb, determine the reaction at fixed support C for the frame shown. 180 Ib 6 in. 10 in. -20 in. 100 lb 24 in. 16 in.
-
A point on the parabola y = x is least distant from the straight line y = 2x - 4. Find: Coordinates of the point.
-
Ethical Finance brings Value to Society, do you think Islamic finance also brings value to society? What are the Islamic social financing channels?
-
How do visionary leaders navigate the complexities of organizational dynamics to cultivate a culture of innovation and adaptability ? Explain
-
Consider the two Python programs below: def A(I, P): def B(): print (I) if I > 3: P() elif I > 2: A (4, B) elif I > 1: A(3, B) else: A(1, C) A (2, B) def C(): pass def A(I, P): def B(): print (I) if...
-
Electric Fields cannot be seen with the eye although their effects can be obvious. The use of animations and simulations is very helpful to visualize and understand electric fields. Complete the...
-
2) At the post office, Tiffany paid $11.04 for 24 stamps. At this rate, how much would it cost for Tiffany to buy 18 stamps? 3) At a factory, there are 40 new cars produced every 8 hours. How many...
-
The graph of the two equations appears to be parallel. Solve the system of equations algebraically. (If there is no solution, enter NO SOLUTION. If the system has an infinite number of solutions,...
-
Whats the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change the time line to show the other type of annuity?
-
Abigail (Abby) Boxer is a single mother working as a civilian accountant for the U.S. Army. Her Social Security number is 676-73-3311 and she lives at 3456 Alamo Way, San Antonio, TX 78249. Helen,...
-
Janie graduates from high school in 2012 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees. a. Assuming Janie's parents have AGI of $170,000, what is the American...
-
Professor Patricia (Patty) Pate is retired from the PalmSprings Culinary Arts Academy (PSCAA). She is a single taxpayer and is 68 years old. Patty lives at 98 Colander Street, Henderson, NV 89052....
-
A valve has a failure rate of 0.06 failures per year. A periodic inspection performed once a year can detect 60% of the failures. The valve is operated for 10 years before it is removed from service...
-
An instrument has a failure rate of 0.015 failures per year. All failures are immediately detectable. The MTTR is 24 hours. What is steady state unavailability?
-
A failure report states that a safety transmitter signaled a high pressure in a vessel and initiated a trip. Other pressure measurements did not indicate any high pressure. A diagnostic in the safety...
Study smarter with the SolutionInn App