What are three marketing channels

Pineapple Motor Company manufactures two types of speciality electric motors, a commercial motor and a residential motor, throug

Usimov [2.4K]

Answer:

a. Single Plant wide Factory Overhead Rate = $ 140 per machine hour

Overhead Rate of Assembly Department $ 120 per machine hour

Overhead Rate of Testing Department= $ 150 per unit per machine hour.

Total Overhead per Unit Commercial $ 588 Residential $ 462

Explanation:

Pineapple Motor Company

Assembly Department Factory Overhead 360,000

Testing Department Factory Overhead 900,000

Total Factory Overhead 1,260,000

Direct machine hours were estimated as follows:

Assembly Department 3,000 hours

Testing Department 6,000

Total 9,000 hours

Commercial Residential

Assembly Department 1.4 dmh 1.1 dmh

Testing Department 2.8 2.2

Total machine hours per unit 4.2 dmh 3.3 dmh

Single Plant wide Factory Overhead Rate = Total Factory Overhead 1,260,000/Total 9,000 hours

a. Single Plant wide Factory Overhead Rate = $ 140 per machine hour

Overhead Allocated to Assembly Department = No of Hours * Rate

= 3000 * $ 140 = $ 420,000

Overhead Allocated to Testing Department = No of Hours * Rate

= 6000 * $ 140 = $ 840,000

b. Overhead Rate of Assembly Department = Factory Overhead / Machine Hours= 360,000/3,000 hours = $ 120 per machine hour

Overhead Rate of Testing Department= Factory Overhead / Machine Hours= 900,000/ 6000 hours= $ 150 per unit per machine hour.

Overhead Allocated

Commercial Residential

Assembly Department 1.4 *120 1.1 dmh *120

168 132

Testing Department 2.8*150 2.2*150

420 330

Total Overhead per Unit $ 588 $ 462 

c. ABC approach is better as it gives an estimate of the overhead per unit both for the Commercial and Residential department using the assembly and testing overheads rates separately. The single plant wide rate gives a mere estimate of the overall costs.

3 0

3 years ago

Mike Karanikolas wants to enter the French market with his usual strategy of using influencers. Two influencers are considered t

ratelena [41]

Answer:

A) Based on NPV, Mike will choose 2nd influencer.

B) Based on IRR, Mike will choose 2nd influencer.

Explanation:

See images to get the appropriate answer:

3 0

3 years ago

A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Mos

denis-greek [22]

A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.

C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.

The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below

$\rm Net\ earnings= claim\ received - premium\ of\ policy$

$\rm Net\ earnings= 750000-40000$

We get,

$\rm Net\ earnings= 710000$

If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that risk cannot be taken.

In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.

Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.

To know more about insurance policy , click the link below.

brainly.com/question/24984403

6 0

2 years ago

Read 2 more answers

When a firm pursues a(n) ___________, it sells the same products or services in both domestic and foreign markets.

vladimir1956 [14]

When a firm pursues a(n) localization strategy, it sells the same products or services in both domestic and foreign markets.

Multinationals choose from four basic international strategies: (1) international, (2) multinational, (3) global, and (4) transnational. These strategies differ between the two strains. 1) Focus on low cost and efficiency, and 2) Respond to local culture and needs.

A company can obtain its three main benefits by successfully deploying a foreign markets strategy: (1) increased market size, (2) economies of scale and learning, and (3) location advantages. I can. Greater market size is achieved by expanding beyond the company's home country.

Multinational Corporation chooses from their three basic international strategies: (1) multidomestic, (2) Global, and (3) Transnational. These strategies differ in their focus on achieving global efficiencies and addressing local needs.

Learn more about foreign markets at

brainly.com/question/20860719

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4 0

1 year ago

began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for r

gogolik [260]

Answer:

$352,500

Explanation:

Development costs incurred prior to June 30, 2021 must be expensed, they cannot be capitalized.

Capitalized R&D costs = $1,410,000

External use software (software intended to be sold to third parties) should be amortized using straight line amortization (4 years in this case):

amortization expense = $1,410,000 / 4 = $352,500

4 0

3 years ago