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Gnesinka [82]
3 years ago
7

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity o

f 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed.
Business
1 answer:
love history [14]3 years ago
3 0

Missing information:

Direct materials (4.0 lbs. x $4.00 per lb.) $ 16.00

Direct labor (2.0 hrs. x $11.00 per hr.) 22.00  

Overhead (2.0 hrs. x $18.50 per hr.) 37.00

Total standard cost $ 75.00

Overhead Budget (75% Capacity)

Variable overhead costs  

 Indirect materials $ 15,000  

 Indirect labor 75,000  

 Power 15,000  

 Repairs and maintenance 30,000  

Total variable overhead costs  $ 135,000

Fixed overhead costs  

 Depreciation--building 25,000  

 Depreciation--machinery 72,000  

 Taxes and insurance 18,000  

 Supervision 305,000  

     Total fixed overhead costs  420,000

Total overhead costs  $555,000

Answer:

I used an excel spreadsheet to calculate the flexible budget because there is no room here. The production levels represent 13,000 units, 15,000 units and 17,000 units respectively. As total output increases, cost per unit decreases.

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You have spent weeks designing the project, gathering data and analyzing it. Now it is time to present your findings to senior e
Andrew [12]

Answer:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, In the very beginning of your report, in the executive summary, you can present and manifest and guide them about all the information, what they should know in making a decision

Explanation:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, you will have following 5 different course of actions;

Option 1: You can give them whole details through which you can have gone, meanwhile your discussion with the senior executives.

Option 2: Summary of the report in form of data tables can be provided without any recommendation and course of action suggested.

Option 3: You can also mention the information regarding the respondents of the research, if executives want to have follow-up and want to know to whom you have got your questionnaires filled up.

Option 4: In the very beginning, in the executive summary of the report, you can present and manifest and guide them about all the information, what they should know in making a decision

Option 5: You main focus could be primarily on the statistical analysis in your presentation, followed by the main recommendations at the end.

BEST POSSIBLE OPTION: As the senior executives are having very less time, therefore, it would be best for you present them with the information in the very beginning in the executive summary, in addition, all the information which they can consider to make a decision.

To recapitulate, keep the information needed to be considered for taking an action or decision, in your executive summary, in a best possible simple and short way.

5 0
4 years ago
"which mode of transportation would cost the least per ton mile?"
IRINA_888 [86]

The answer is letter d. water. Water would cost least per ton mile, since transportation through water depends on the materials or watercraft you will be using. If an individual is using an ordinary boat, a boat that is being rowed, it would cost less, than a boat being rowed by an electrical engine. 

8 0
3 years ago
For years, Ferrari has been known as the manufacturer of expensive luxury automobiles. The company plans to attract the major se
Norma-Jean [14]

Answer:

Answer to each part of the question is given below separately under specific headings with detailed explanation.

Explanation:

<u>a) Branding strategy recommendation</u>

The branding strategy they should opt is a multi-branding strategy, in which a company's objective is to market more than one product and/or brand under the same hood in order to increase their overall market share. This strategy is somewhat used by other known car manufacturers such as Toyota (Lexus), Honda (Acura) etc.

<u></u>

<u>b) Branding strategy trade-offs</u>

The trade-off with this strategy is that the attention of Ferrari would be diverted from their main market segment and therefore, they will not be providing new products to the luxury market.

This will give the other companies in the same market segment the opportunity to increase their market share in the same segment.

<u>c) Opinion on the trading-down strategy</u>

It is fairly a risk for Ferrari to opt for the trading down strategy. This is due to the fact that their main market and objective is the luxury market to buy their expensive cars. Focusing on the new strategy could hurt their brand equity and this may impact their loyal buyers.

However, such could be avoided if they market this strategy with a foreign brand name and promote the name under the Ferrari hood by saying that the foreign brand has been designed by the Ferrari. Keeping the original Ferrari name and objective separate from this brand.

5 0
3 years ago
Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500
mixer [17]

Answer:

b. the difference between Solomon's contract price and the amount paid by Renny

Explanation:

Neal sues Solomon for damages as Solomon breaches his contract with Neal to purchase the 500 pairs of socks from him. Although he can sell the 500 pairs to Renny even then he was in loss only as he sells socks to Renny at a lower amount then it's actual cost.

In this case, Neal will be able to recover the difference between Solomon's contract price and the amount paid by Renny.

4 0
4 years ago
The following information is available for Brendon Company before closing the accounts. What will be the amount in the Income Su
CaHeK987 [17]

Answer:

$64,400

Explanation:

The amount of in the income summary that would be closed to retained earnings is the fees earned of $187,000 less the depreciation expense of $12,000,wages expense of $71,400,interest expense of $3,300,insurance expense of $11,700 as well as the rent expense of $24,200 as computed thus:

net income from income summary=$187,000-$12,000-$71,400-$3,300-$11,700-$24,200=$64400

Retained earnings closing balance=$112,000-$32,000+$64400 =$ 144,400.00  

7 0
3 years ago
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