Answer:
Budgeted direct labor cost= $10,150
Explanation:
Giving the following information:
Production:
March= 1,400 units
April= 1,500 units
Each nightstand requires 0.25 direct labor hours in its production. Direct labor rate of $ 14.00 per direct labor hour.
To calculate the production budget cost for direct labor, we need to use the following formula:
Direct labor cost= total direct labor hours*direct labor rate
<u>March:</u>
Direct labor hours= 0.25*1,400= 350 hours
<u>April:</u>
Direct labor hours= 0.25*1,500= 375 hours
Budgeted direct labor cost= (350 + 375)*14= $10,150
Answer:
it is very simple and easy to do it.
Explanation:
Companies that use average cost pricing just add markup that they consider reasonable to the average cost of a product, and you have the final selling price of the product.
A disadvantage of using average cost pricing is that t does not consider how costs change as your sales level changes. This method usually works best when the company is able to estimate its total sales ad then use that estimation to calculate the average cost price.
Answer:
Goal formation is a process of how a goal is initiated or added to, while goal displacement is a process whereby goals are shifted out, changed, toned down or removed from the original set.
Answer:
7208.9
Explanation:
Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. The sales price of the item is $12 with a 20% profit margin. The average order is 50.
expected cost is the probability that a certain cost will be incurred multiplied by the cost.
Stockout cost can be defined as the lost income and expense in relation to a shortage of inventory.
Expected cost/stockout=Probability of stockout *expected demand
Probability of a back order is 67%
lost sale is 22%
probability of a lost customer is 11%.
expected demand for back order $50
The average order is 50.
lost customer is $65,000
The sales price of the item is $12 with a 20% profit margin
.67*50+.11*65000+.22*50+1.2*12
33.5+7150+11+14.4
=7208.9
