8) The total purchase related cost is RO 30,000. The number of purchase orders placed is 60. The Activity cost driver rate is: a. RO 300 per order b. RO 180 per order c. RO 500 per order d. RO 450 per order

8) The total purchase related cost is RO 30,000. The number of purchase orders placed is 60. The Activity cost driver rate is: a. RO 300 per order b. RO 180 per order c. RO 500 per order d. RO 450 per order

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: nd and supply functions: Demand: Qd = 900 - 60P Supply: Qs = -200 + 50P If the price is currently…

A: The right answer is option 2. surplus of 110 units

Q: A particular raw material is available to a company at three different prices, depending on the size…

A: Given data Rate per size Less than 100 pounds = $20 100 pounds to 999 pounds = $19 1,000 pounds or…

Q: Longwe chemical Com. ltd requires 20,000 gallons of material annualy the cost of placing an order is…

A: EOQ is the size of order that reduce the total cost of units. EOQ is determined by using the annual…

Q: The annual demand for an item of raw materials is 4,000 units and the purchase price is expected to…

A: Economic order quantity (EOQ) is the ideal quantity amount an organization should buy to limit stock…

Q: The actual price for a product was $43 per unit, while the planned price was $39 per unit. The…

A: Solution:- a)Calculation of quantity factor as follows under: -

Q: 1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…

A: Economic order quantity (EOQ) refers to the level of production activity at which the manufacturing…

Q: The quarterly demand for an item of raw materials is estimated at 2,000 units at a purchase price of…

A: Optimal Order Quantity:- Optimal Order Quantity is the method of inventory management which…

Q: Electric spark Co., uses 60,000 of component Zima. The cost of placing an order is estimated at…

A: 1) EOQ = 2AO/c Given that, annual demand - 60000 units cost of placing an order is estimated at…

Q: If the required direct materials purchases are 31500 pounds, the direct materials required for…

A: Ending Inventory :— Ending inventory is the value of goods still available for sale and held by a…

Q: The total purchase related cost is RO 10,000. The number of purchase orders placed is 100. The…

A: Activity cost = RO 10,000 Cost driver = Number of purchase orders placed

Q: cost per order is Rs 30 and the carrying cos: is Rs.50. If the schedule of disce is applicable to…

A: Meaning of Economical Order Quantity Economical Order Quantity also known as EOQ is the quantity at…

Q: The weekly requirement of a component is 950 units. The order cost is RM85 per order, the holding…

A: Economic Order Quantity (EOQ) was related with inventory management where it helps to order the…

Q: The demand for products is 18,000 units. The ordering cost is 40 OMR per order and the holding cost…

A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…

Q: Draw and explain EOQ chart with the following data: Requirements per year = 1600 units, Ordering…

A: Economic Order Quantity is that level of ordered inventory which reduces the ordering and holding…

Q: Sheridan Company has received a shipment of suits that cost $140 each. If the company uses cost-plus…

A: Sales price per suit = Cost per suit + Markup (%)

Q: Example 2: A company produces motor bikes. It needs 5400 tires every year. It buys tires from a…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Harrowing Company has the following information: Annual demand =3,500 units Order size = 500…

A: EOQ is used to decide a level of inventory that will give the minimum cost of ordering and holding.

Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…

A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…

Q: Sunland Company has received a shipment of suits that cost $320 each. If the company uses cost-plus…

A: Selling Price = Cost + Markup (%)

Q: A company uses activity-based pricing. The pricing structure is to charge customers the direct cost…

A: Given the following information: Markup on direct cost: 30% The service costs are $8.00 per order,…

Q: he Xenopeltics Company estimates its requirement, which is 39,000 units semiannually at a price of…

A: Economic Order Quantity = (2S0 / C)1/2 where, C = carrying cost per unit = $4 * 0.15 = $0.60 S =…

Q: Effect of management evaluation criteria on EOQ model. Rugged Outtters purchases one model of…

A: Since there are multiple sub-parts as per guidelines only the first three sub-parts will be…

Q: Calculate the economic order quantity given the following data. Annual demand (D) 5,000 units…

A: Economic order quantity is the optimum inventory level that should be ordered in order to reduce…

Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…

A: Orders 250 units at a time x 30 orders 7,500 Ordering cost per order ($1,100 / 30) $36.67…

Q: Given the following information, what is the economic ordering quantity (EOQ) for Nashville Records…

A: EOQ(Economic Order Quantity) is quantity of goods that should in one order keeping ordering and…

Q: Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO…

A: EOQ is the ideal quantity company should order to minimize the cost of holding charges &…

Q: Planet Company sells a product for $16 per unit, variable cost is $12 per unit, and the total fixed…

A: Given, Selling price = $16 per unit Variable cost = $12 per unit Fixed cost = $6,000

Q: Find the optimal order quantity of a product for which the price breaks are as follows:…

A: Monthly demand for product = 200 units Annual consumptions = 200 units x 12 months…

Q: An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and…

A: Economic Order Quantity:- EOQ is the minimum quantity that one should order to minimize the ordering…

Q: Venus Industries consumes 20,000 units p.a. of a particular component. The supplier has offered the…

A: Economic order quantity(EOQ) is the method of ordering the inventory from the suppliers by…

Q: A firm's requirement of materials is 3,000 units (price Rs 20 per unit) for 6 days. The ordering…

Q: The total purchase related cost is RO 30,000. The number of purchase orders placed is 60. The…

A: Activity cost = RO 30,000 Cost driver = Number of purchase orders

Q: Suppose that the demand rate is 500 units per week. The fixed ordering cost is $50 per order. The…

A: Inventory: It is the goods that are held by a company at various stages like stock of raw materials,…

Q: ‏The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…

A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…

Q: Evansville Company had the following transactions for the month. Number Cost of Units per Unit…

A: Gross margin is computed by subtracting the cost of goods sold from the sales price. The cost of…

Q: The total purchase related cost is RO 50,000. The number of purchase orders placed is 80. The…

A: Given that, total purchase related cost is RO 50,000. number of purchase orders placed is 80 we…

Q: special order was received at last minute to supply 5,000 units at a price of £60. Should the…

A: The solution is only for the requirement which has been asked to solve. The decision regarding…

Q: Tony uses EOQ logic to determine the order quantity for its various components and is planning its…

A: Economic order quantity is that quantity which should be purchased by every entity in its order so…

Q: A company has a contract to supply 5,000 units of an item per year to the retail store. An estimated…

A: Compute EOQ as follows:

Q: Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following…

A: Lets understand the basics. High low method is a method using which variable costs and fixed costs…

Q: II. A firm's requirement of materials is 3000 units (Price Rs 20 per unit) for 6 days. The ordering…

A: Meaning of EOQ EOQ is known as Economic Order Quantity. It minimizes the total handling and ordering…

Q: Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying…

A: Hi student: Since there are multiple questions, we will answer only first question. If you want…

Q: A company has annual demand for its product of 800,000 units. Each unit costs $10. Ordering costs…

A: The optimum order level is Economic order quantity or EOQ if no discount is given. So, it is…

Q: Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO…

A: Here in this question we are required to calculate Economic Order Quantity (EOQ). Economic order…

Question

8) The total purchase related cost is RO 30,000. The number of purchase orders placed is 60. The Activity cost driver rate is:

RO 300 per order

RO 180 per order

RO 500 per order

RO 450 per order

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The total purchase related cost is RO 50,000. The number of purchase orders placed is 80. The Activity cost driver rate is: a. RO 650 per order b. RO 525 per order c. RO 550 per order d. RO 625 per order
An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in unitsand then convert to dollars.
Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 units ; Cost of placing one Order: RO 60Carrying cost per unit: RO 2 cost per unit: RO 10
1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 unitsCost of placing one Order: RO 60Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of…
Draw and explain EOQ chart with the following data: Requirements per year = 1600 units, Ordering cost = Rs. 100/- per order, Carrying cost = Rs. 5/- per unit, Purchase cost = Rs. 80/- per cost. Assume the missing data.
if the holding cost of an item is $0.15 per unit per day, the ordering cost is $200 per order, the purchasing cost per unit is $12 for any quantity less than 500 units, and $11 otherwise. The daily demand is 80 units. Find the economic order quantity?
The demand for products is 18,000 units. The ordering cost is 40 OMR per order and the holding cost is 10 riyals per unit per annual. The EOQ will be a. 335.41 b. 296.64 c. 282.84 d. 379.47
1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following: Annual consumption: 6000 units ; Carrying cost per unit: RO 2 Cost of placing one Order: RO 60 2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve…
The quarterly demand for an item of raw materials is estimated at 2,000 units at a purchase price of GH¢180 per unit. It is estimated that the cost per order will be GH¢270 and the cost of holding a unit of material in inventory will be GH¢24.Required:i. Compute the optimal order quantity, and total minimum costs.ii. Suppose a supplier offers 5% quantity discount for purchase of 8,000 units, should the offer be accepted
A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time?
Compute the EOQ given the following information.The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price.The supplier quotes the following prices for the component.No of units bought at timePrice per unitLess then 1000OMR 101000 to 2999OMR 9.53000 and aboveOMR 9What is the optimal order quantity?