1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
puteri [66]
3 years ago
6

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the

product cost.
Business
1 answer:
rusak2 [61]3 years ago
6 0
If this is a true or false question, then yes, it is <u>true</u> that the selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.It is important to determine the appropriate method to allocate overhead in a certain factory so as to ensure that the cost of a product is suitable and accurate.
You might be interested in
Our company makes sophisticated lenses for satellite cameras. We allocated our overhead (OH) costs using practical equipment mac
ser-zykov [4K]

Answer:

If we made the switch, our OH rate would be closest to: $30.40 per MH

Explanation:

Overhead Rate is used to allocate manufacturing overheads (indirect costs) to jobs and departments.

In our senario Overhead rate are used to allocate fixed manufacturing overheads to production of lenses for satellite cameras.

Overhead Rate = Budgeted Overheads / Budgeted Activity

                          = $760,000/ 25,000

                          = $30.40 per practical equipment machine hour

5 0
3 years ago
1. A new furnace for your small factory will cost $27,000 to install and will require ongoing maintenance expenditures of $1,500
Marina CMI [18]

Answer:

payback 3.29 years

NPV 87,158.55

Explanation:

PO 27,000

<u>Cash flow saving Y1 </u>

2400 x 3.5 = 8,400

expenditures (1,500)

net savings   6,900

<u>Cash flow saving Y2 </u>

The price will increase 0.5

6,900 + 2,400 x 0.5 = 8,100

<u>Cash flow saving Y3 to Y20</u>

The price will increase 0.5

8,100 + 2,400 x 0.5 = 9,300

We have an annuity of 18 years for 9,300 cash

And then we have a cash flow of 6,900

and another of 8,100

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C = 9,300

r = 8%

time = 18

9,300 \times \frac{1-(1+0.08)^{-18} }{0.08} = PV\\

PV =  87,158.55

Now this values are years into the future, so we need to bring them to present day.

\frac{Principal}{(1 + rate)^{time} } = PV

year 1 principal 6,900

6,900/1.08 = 6,388.89

year 2 principal 8,100

\frac{8,100}{(1 + 0.08)^{2} } = PV

PV= 5,915.64

year 3 annuity 87,158.55

\frac{87,158.55}{(1 + 0.08)^{3} } = PV

PV= 69,189.27

cash flow - investment = net present value

69,189.27 + 5,915.64 + 6,388.89 - 27,000 = 54,493.8

The payback will be the time perdion when the project recovers it initial cost:

we first add the income from the irregular years and subtract from the investment

6,900 + 8,100 = 15,000

27,000 - 15,000 = 12,000

then we use the general formula investment/cash flow per year

12,000/9,300 = 1.29

the project need the first two years and then 1.29 years

2 + 1.29 = 3.29 years

6 0
3 years ago
Which of the following statements about mentors is true?
lesya [120]

Mentors are an excellent way to learn on the job- this statement about mentors is true.

Option: A

Explanation:

Mentors are the one who guides his trainee from different perspectives and help in every possible way. Mentors provide real life a practical advice so that it become easy to deal with the problem for trainee. Every company do support mentoring program. After appointing many fresher company executive split them in number groups and assigned one expert per group according to the nature of work.

That field expert monitors his group which consists of 7-8 persons at a time. Expert assign work to the trainees for daily basis, supervise them, advice them and train them to be a perfect employee of that company.

5 0
3 years ago
Read 2 more answers
At December 31, 2019, Bramble Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,506
ale4655 [162]

Answer:

The earnings per share for Bramble in 2020 is $2.99

Explanation:

This was arrived at by preparing income statement for 2020,where in the results from continued operations and discontinued were shown.

The income from continued operations attracted tax at 35% while the losses from the discontinued operations got a tax benefit at the same 35% tax rate.

Note that the earnings used in calculating earnings per share is net of preferred dividends as only earnings  attributable to ordinary shareholders are considered.

Find attached spreadsheet for the full blown income statement and the calculation of earnings per share.

Download xlsx
5 0
3 years ago
What is one of the advantages of buying an existing business
Sloan [31]
Here are several advantages to buying an existing business; Immediate cash flow, existing costumers, suppliers, and financial history.
7 0
3 years ago
Other questions:
  • N increase in buyers' income in the market for radios will _______ the market price and ________ the market quantity of radios,
    8·1 answer
  • When the cost of the cpi market basket increases from one year to the next we know that?
    5·1 answer
  • A 63-year-old man presents to the office with hematuria, hesitancy, and dribbling. Digital rectal exam (DRE) reveals a moderatel
    6·1 answer
  • If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end
    10·1 answer
  • 1. A system held inventory to protect it from uncertainties in supply. In an effort to be lean, this inventory is used and not r
    14·1 answer
  • Genepa Corporation manufactures home appliances and other electronic products. Genepa is planning to introduce a new refrigerato
    7·1 answer
  • What if the meaning of the cumulative EAC (cell M105) at the conclusion of Period 6?
    8·1 answer
  • George Corporation has no beginning inventory and manufactures a single product. If the number of units produced exceeds the num
    15·1 answer
  • First Class, Inc., expects to sell 28,000 pool cues for $14 each. Direct materials costs are $3, direct manufacturing labor is $
    7·1 answer
  • Suppose you have $12,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!