First of all, the predetermined overhead will be calculated.
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hour
Predetermined overhead rate = $ 258,000 ÷ 15,000 hours = $ 17.20 per direct labor hour
Actual manufacturing overheads = $ 253,000
Applied manufacturing overheads = Predetermined overhead rate × Actual direct labor hours
Applied manufacturing overheads = $ 17.20 × 13,100 = 225,320
Applied manufacturing overheads are less than actual manufacturing overheads, thus overheads are under applied.
Actual manufacturing overheads - Applied manufacturing overheads = $ 27,680 under applied
Answer:
Percentage change in sales = [(Ending value - Beginning value) / Beginning value] * 100
Percentage change in sales = [($67,000 - $62,000) / $62,000] * 100
Percentage change in sales = 0.080645
Percentage change in sales = 8.0645%
Percentage change in OCF = Percentage change in sales * Degree of operating leverage
Percentage change in OCF = 8.0645% * 3.7
Percentage change in OCF = 29.84%
Will the new level of operating leverage be higher or lower?
As the sales increase, contribution margin will remain constant but operating margin percentage will rise. Therefore, this leads to fall in operating leverage.
Answer: Delegation
Explanation: Delegation in the context above may simply be explained as the process whereby there is a shift in the responsibility of one person to another who will function as a deputy. When an individual usually a superior, who is the actual overseer of a certain process or routine entrusts or handover to another person due to one reason or the other such as tight scheduling or shortage of personnel. In most cases the new handler is usually a lower ranking official in the task such as in the scenario above and as such, the expected rate of output is slightly reduced.
Well I would say B because the passage states that she doesn't have the staff and so on and so forth. But it didn't say that she couldn't cook it so I would cook it but make her subcontract the rest.
