Duty-Related Costs of Locating in an FTZ Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric from overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. Required: 1. What is the amount of duty paid by Aranda last year (before locating in the FTZ) and for this year after relocating to the FTZ? Duty Last Year This Year 114,000 ✔ $114,000 ✔ 2. What is the amount of carrying cost associated with the duty paid by Aranda last year and for this year after relocating to the FTZ? Last Year This Year Carrying cost of duty 3,420 22,800 X 3. What is the total duty-related cost for Aranda last year and for this year after relocating to the FTZ? Last Year This Year Total duty-related cost $ 117,420 ✓ 4. What is the total savings on duty and carrving cost attributable to locating in an FTZ? Check My Work Previous Next

Owe

Zachary manufacturing company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $121600 per year to inspect completed tents before they are shipped to customers. assume that the company completed 1,530 tents in January and 1,240 tents in February. For the entire year, the company expects to produce 19000 tents. required c) If the cost objective is to determine the cost per tent, is the expert's salary a direct or an indirect cost? D) How much of the expert's salary should be allocated to tents produced in January and February? If the cost objective is to determine the cost per tent is the expert's salary a direct or an indirect cost?

Munoz Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $77,050 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,690 tents in January and 1,300 tents in February. For the entire year, the company expects to produce 11,500 tents. If the cost objective is to determine the cost per tent, is the expert’s salary a direct or an indirect cost? How much of the expert’s salary should be allocated to tents produced in January and February?

Adams Air is a large airline company that pays a customer relations representative $16,425 per month. The representative, who processed 1,100 customer complaints in January and 1,360 complaints in February, is expected to process 21,900 customer complaints during the year. Required Determine the total cost of processing customer complaints in January and in February.

Munoz Air is a large airline company that pays a customer relations representative $3,900 per month. The representative, who processed 1,180 customer complaints in January and 1,370 complaints in February, is expected to process 23,400 customer complaints during the year.Required Determine the total cost of processing customer complaints in January and in February.

Goda

Aziz Company sells two types of products, basic and deluxe. The company provides technical support for users of its products at an expected cost of $270,000 per year. The company expects to process 10,000 customer service calls per year. Required: 1. Determine the company's cost of technical support per customer service call. 2. During the month of January, Aziz received 570 calls for customer service on its deluxe model and 270 calls for customer service on its basic model. Assign technical support costs to each model using activity-based costing (ABC). Assign technical support costs to each model Model Activity Rate Deluxe Basic Cost driver quantity incurred Allocated Cost

Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?

[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays itsworkers $8 per hour.Required:Determine Shadee's budgeted direct labor cost for May and June. (Do not round yourintermediate values. Round your answers to 2 decimal places.)$ $May JuneBudgeted Direct Labor Cost 0.00 0.0