The student is very unrespectful in his writing
I would be sort of surprised from this email because it is written in a way where I most likely wouldn't be used to.
Based on the email, I would think this student is irresponsible and/or doesn't care enough about the work. He's only half committed to it.
Answer:
Explanation:
Overhead allocated to Product X = Department A overhead cost+ Department B overhead cost
= $51,157.84+$5755.62=
= $56,913
Calculations:
Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X:
Department A's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $4300000/60000 hours = $71.66 per hour
Overhead (Department A) = $71.66per hour*724 labor hours
= $51,157.84
Department B's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $2200000/60000 hours = $36.66 per hour
Overhead (Department A) = $36.66 per hour*157 labor hours
= $5755.62
Answer:
Degree of Operating Leverage = 1.34
The Operating cash flow increases by 12%
The new operating cash flow is $290200
Explanation:
% change in Operating Cash Flow = Degree of Operating Leverage * % change in sales
There is need to calculate Degree of operating leverage first. Degree of operating leverage = Contribution / EBIT
Where Contribution = OCF + Fixed costs / OCF
Fixed costs= Total costs - variable costs = 300000 - 215000
Fixed Cost= 85000
Degree of operating leverage = (250000 + 85000) / 250000
DOL= 1.34
% change in OCF = DOL * % change in sales
% change in sales = (56000 - 50000) / 50000 = 12%
% change in OCF = 1.34 * 12% = 16.08%
New OCF = 250000 * (1+16.08%)
=$250000 * (1 + 0.1608)
=$250000(1.1608)
= $290200
<span>If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then the quantity of products will be growing and growing in the stock. this will again lead to a decrease in price and consumes more time to sale their stock. This will create a heavy loss to the investor. It may be overcome by innovative thoughts such as stopping the production of current product and launching a new product with available materials. So that it will balance the production and sale.</span>
