Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.
Answer:
Departmental wage expenses for Dept. Y = 8,750 and Dept. Z = 10,250.
Explanation:
Direct wages of Y and Z sum 2,000 + 3,500 = 5,500. The remaining expenses are the difference between total wage expense and direct wage expenses. That means indirect expenses are 19,000 - 5,500 = 13,500. These has to be allocated half for each department.
- Dept Y expense is 2,000 + 13,500/2 = 2,000 + 6,750 = 8,750
- Dept Z expense is 3,500 + 13,500/2 = 3,500 + 6,750 = 10,250
Answer:
True, but it applies to everyone in the organization.
Explanation:
Modern companies can only be successful if every single employee works as a team member, since competition keeps increasing and customers' expectations keep rising.
Every single role within an organization is important. Can supply chain professionals distribute a product that doesn't exist (wasn't manufactured on time)? Could they distribute a product that no one wants to buy (marketing and sales are extremely important also)? Could anyone work if the finance department couldn't do its job and there was no money in the company?
We tend to believe that what we do is extremely important and difficult to do, and other people have it easier because their are simpler than ours. But that is just nonsense. Once I heard a quarterback talking about who was the most important player in a football team, and his answer really surprised me, "Quarterbacks fill stadiums, but defenses earn championships". On a team no one is more important, the chain breaks on its weakest link.
Answer:
(C) Product X = $880; Product Y = $2,240
Explanation:
The applied overhead will be calculate by the product of the cost diver and the overhead rate:
<u>Cost driver for each product:</u>
Product X 3MH and 1LH
Product Y 4MH and 8LH
<u />
<u>Overhead rate: </u>
240 per machine hour
and 160 per labor hour
Product X 3MH x $240 + 1LH x $160 = 880
Product Y 4MH x $240 + 8LH x $160 = 2,240
<span>External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.</span>
