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OLga [1]
3 years ago
13

EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed

as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $958,396 in manufacturing overhead costs and produce 18,100 units of Product W and 72,400 units of Product S during the current year.
Unit cost for materials and direct labor are:

Product S Product W

Direct material $ 12 $ 34

Direct labor 16 13

Required: a-1. Compute the predetermined overhead rate under the current method of allocation.

a-2. Determine the unit product cost of each product for the current year.

b. The company's overhead costs can be attributed to four major activities.

These activities and the amount of overhead cost attributable to each for the current year are given below:

Total Activity Activity Cost Pool Total Cost Product S Product W

Total Machine setups required $ 411,680 1,690 1,630 3,320

Purchase orders issued 56,316 547 175 722

Machine-hours required 203,500 7,400 11,100 18,500

Maintenance requests issued 286,900 658 852 1,510 $ 958,396

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year.

Predetermined overhead rate per DLH

Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Product S Product W

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Product S Product W
Business
1 answer:
Julli [10]3 years ago
4 0

Answer:

Explanation:

1.

Direct labour hours work during the period:

Product S=72,400 units×1 hour=72,400 hours

Product W=18,100 units × 3 hours=54,300 hours

Total labour hours=126,700 hour

Predetermined overhead rate=$958,396/126,700  =7.56 per hour

2.

Unit product cost of S = Direct Material cost + Direct labour cost + Overhead = 12+16+7.56*1 = $35.56

Unit product cost of W = Direct Material cost + Direct labour cost + Overhead = 34+13+7.56*3 = $69.68

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Answer:

a. The number sentence that is the topic sentence is sentence (1).

b. Sentence (6) does not contribute to the paragraph's unity.  It can be eliminated, without changing the meaning that can be obtained from the paragraph.  It does not support the topic.

c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.

d. The example in a sentence makes the idea clearer to the reader.  Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.

Explanation:

The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer.  It captures the essence of the story.  As it bears the central idea, it focuses the paragraph to achieve unity.

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3 years ago
Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima
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Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

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The Stone Company has observed that its utility cost is $5,000 when operating at a level of 20,000 machine hours per period. The
trasher [3.6K]

Answer:

$4,600

Explanation:

Data provided in the question:

Utility cost = $5,000

Operating level = 20,000 machine hours per period

Final utility cost = $4,000

Final operating level = 15,000

Now,

Variable cost per machine hour

= [Total cost at highest level-Total cost at lowest level] ÷ [ Highest level-Lowest level) ]

=[ 5000 - 4000 ] ÷ [ 20,000 - 15,000 ]

= $0.2 per machine hour

Therefore,

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= $1000

Total cost for 18000 machine hours

= [ 0.2 × 18,000 ] + 1000

= $4,600

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3 years ago
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There are various decision making styles of managers, the 4 different kind of manager decision making styles are listed below,

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Analytical decision making style is one which focuses on finding the best possible solution to the problems after considering all alternative solutions

Conceptual decision making style is one in which managers are achievement oriented and they wish to see brighter future.

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