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pochemuha
3 years ago
11

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu

tes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Casting Customizing
Machine-hours 25,000 24,000
Direct labor-hours 7,000 7,000
Total fixed manufacturing overhead cost $145,000 $35,000
Variable manufacturing overhead per machine-hour $1.10
Variable manufacturing overhead per direct labor-hour $3.20

The estimated total manufacturing overhead for the Customizing Department is closest to:________
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer:

$57,400

Explanation:

The computation of the estimated total manufacturing overhead for the Customizing Department is shown below:

= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour

= $35,000 + 7,000 direct labor hours × $3.20

= $35,000 + $22,400

= $57,400

All other information that is given in the question is ignored.

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Answer:

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Ethnocentric staffing model: involves hiring expatriates from the company´s home country to fill the most important positions in foreign subsidiaries. This usually happens within multinational corporations where a current employee working in the headquarter´s office gets transferred to a foreign subsidiary.

The main advantage of this approach is that expats should be better aligned with the interests and perspective of the home office. On the other hand, the main disadvantage is that the company loses local perspective and insights.  

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