Answer:
Estimated manufacturing overhead rate= $42 per direct labor hour.
Explanation:
Giving the following information:
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $ 882,000, direct labor costs of $735,000, and direct labor hours of 21,000 for the year.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 882,000/21,000= $42 per direct labor hour.
Answer:
The contribution margin ratio will increase.
Explanation:
Giving the following information:
BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.
Contribution margin ratio= (selling price - unitary variable cost)/selling price
New Contribution margin ratio= (120 - 58)/120= 0.52
Old Contribution margin ratio= (120 - 65)/120= 0.46
Answer:
The correct answer is D. indirect cost.
Explanation:
That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.
In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.
Answer:
Bergman’s can be more efficient, not cumbersome to consumers
Explanation:
Priya acknowledges that competitors are changing its purchase method to an automated one. She sees the trend in consumer behavior and establishes that Bergman has to adopt this new method to be up to date in regards to market best practices.
Therefore, changing to an automated sales, Pryia believes that Bergman will be more modern, efficient and faster.
