Answer:
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company's ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow
Explanation:
Answer:
Department M
Manufacturing overhead rate = $600,000/200,000 hrs = $3/hr
Department A
Manufacturing overhead rate = $400,000/800,000 hrs = $0.5/hr
Manufacturing overhead cost allocated:
Department M = $3 x 8,000 = $24,000
Department A = $0.5 x 12,000 = $6,000
Total manufacturing cost allocated = $30,000
Explanation:
This relates to overhead absorption. The manufacturing overhead rate is calculated as budgeted manufacturing overhead divided by budgeted direct labour hour.
Manufacturing overhead allocated = manufacturing overhead rate x actual labour hour for each department for the job.
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<span>Sporting Goods - CM 30% x 65% = 19.5%
Sports Gear - CM 50% x 35% = 17.5%
Total Fields Corp - Weighted Avg CM = 37%
FC 2,220,000 / Avg CM 37% = 6,000,000 Break Even sales
Sporting Goods Sales @ 65% = 3,900,000 x 30% = 1,170,000 CM
Sports Gear Sales @ 35% = 2,100,000 x 50% = 1,050,000 CM
Total Sales 6,000,000. Total CM 2,220,000 Total FC 2,220,000</span>
Multi-functional new product teams