Answer: Prior authorization quantity limit and step therapy are some examples of the coverage rules
Explanation:
Answer:
The correct answer is letter "E": having enough books to satisfy customer demands versus the cost of having the inventory.
Explanation:
As stated in the case, bookstores do not worry about if the newly published book is going to be a hit in the stores. They only care about if at least some of their customers would want to buy the politician's book. Thus, the challenge for them is to find out if the stock they have is enough for their customers and what is the cost of storing that amount of books in their inventory.
Answer:
No, Actual manufacturing overhead should not be charged to jobs
Explanation:
Only overheads applied using the pre-determined overheads rate should be charged to the jobs. This is because, charging actual manufacturing overhead to the jobs delays the product costing exercise which needs to be done earlier in the month. The Actual costs are only available at the end of the month.
Answer:
Predetermined manufacturing overhead rate= $8.3 per machine hour
Explanation:
Giving the following information:
Total machine-hours 80,000
Total fixed manufacturing overhead cost $416,000
Variable manufacturing overhead per machine-hour $ 3.10
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (416,000/80,000) + 3.1
Predetermined manufacturing overhead rate= $8.3 per machine hour
