All categories

1 year ago

One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True or false?.

1 answer:

3 0

It is a true statement that one of use of a predetermined overhead rate is to eliminate the effect of seasonal factors.

<h3>What is a predetermined overhead rate?</h3>

It is also known as a plant-wide overhead rate. It refers to the calculation that is used to determine how much of the total manufacturing overhead cost will be attributed to each unit of product manufactured. This overhead rate is determined by dividing the fixed overhead cost by the estimated number of direct labor hours.

In conclusion, it is a true statement that one of use of a predetermined overhead rate is to eliminate the effect of seasonal factors as it accounts and plans against such seasonal risk.

Read more about predetermined overhead rate

brainly.com/question/26372929

#SPJ1

You might be interested in

An apparel manufacturing plant has estimated the variable cost to be $2.40 per unit. Fixed costs are $2,000,000 per year. Forty

marta [7]

Answer:

BEP units: 42,017

BEP dollars: 2,100,850

unit cost at 100,000 units produced: 22.40 dollars

operating profit : 1,656,000

Explanation:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

50 - 2.4 = 47.6 contirbution margin per unit

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

2,000,000/47.6 = 42.016,80 BEP units

BEP units x sales price = BEP dollars

42,017 x 50 = 2,100,850

(B)

fixed cosy/ units produced = fixed cost per unit

2,000,000/ 100,000 = 20 fixed cost per unit

fixed cost + variable cost = total cost

20 + 2.40 = 22.4

(C)

There are 40% units sold at the preferred customer at cost

So we sale at gain only 60% of the units:

100,000 units x 60% x 50 = 3,000,000

100,000 units x 40% x 22.40 = 896,000

Total revenue 3,896,000

Cost: 100,000 x 22.40 <u> (2,240,000) </u>

operating profit 1,656,000

4 0

3 years ago

B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred years. It spends much of its marketing

hjlf

Answer:

maturity

Explanation:

Based on the information provided within the question it can be said that the tires are in the maturity stage of their product life cycle. This is the longest stage in the product life cycle in which the introduction and growth stages has already passed and the product advertisements have minimal impact on sales since people have already seen the product. This seems to be the case since Goodrich has sold it's tires for more than a hundred years and only focuses on short term marketing.

8 0

3 years ago

A term describing a firm's normal range of operating activities is: (a) Relevant range of operations. (b) Break-even level of op

OLga [1]

Answer:

A firm's normal range of operating activities is relevant range of operations.

Explanation:

Relevant range of operations can be described simply as a firm or company's expected range of activities without any extreme economic conditions. It is the range where the firm operates in normal conditions. Within this range the firm's operations run smoothly. Outside this range revenue and expenditure may fluctuate from what was expected.

7 0

2 years ago

According to the "marketing rules" we discussed in class, if you cannot be first in a product category, Group of answer choices

ozzi

Answer:

B) change your promotional campaign

Explanation:

A company should advertise that it is the no.1 selling product X in the market

8 0

2 years ago

Which process in service operation contributes to continual service improvement?

kaheart [24]

Having a good credit score

8 0

2 years ago