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Katena32 [7]
3 years ago
13

Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated

annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
Compute the overhead rate for each activity.

Machine setups _______$Morgana Company identifies three activities in its

per setup
Machining _______$Morgana Company identifies three activities in its

per machine hour
Inspections _____-$Morgana Company identifies three activities in its

per inspection
Business
1 answer:
Verizon [17]3 years ago
7 0

Answer:

OAR per  Machine Set-ups = $60

OAR per Machining             = $15

OAR per Inspection             = $50

Explanation:

Overhead Absorption Rate (OAR) = Estimated Overhead Costs/ Cost drivers

OAR per  Machine Set-ups =  $150,000/2,500

                                           =  $60 per set-up

OAR per Machining = $375,000/25,000

                                =$ 15 per machine hr

OAR per Inspection = $87,500/1,750

                                 =$50 per inspection

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Answer:

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The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

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If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.

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Answer:

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Without mincing words, let's dive straight into the solution to the question above:

The intrinsic value of a share of Xyrong stock can be calculated as given below;

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