Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $22.86 per unit, while product B has been assigned $7.39 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Drivers Driver Consumption
Machine setup $516,000 Setup hours 6,000
Materials handling 105,000 Pounds of materials 21,000
Electric power 26,000 Kilowatt-hours 26,000

The following cost information pertains to the production of A and B, just two of Hakara's many products:

A B
Number of units produced 5,000 20,000
Direct materials cost $31,000 $29,000
Direct labor cost $30,000 $40,000
Number of setup hours 200 100
Pounds of materials used 1,000 2,000
Kilowatt-hours 4,000 2,000

Required:
Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)

If a bond is issued at a premium the effective interest rate is most likely

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?