Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and
applied overhead). What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost
1 answer:
Answer:
Some financial details with which to calculate the bid price are missing,find them in the attached question.
The bid price if the predetermined overhead rates have applied is $112,473.00 as shown below
Explanation:
a) Plantwide Overhead Rate = Manufacturing overhead/direct labor cost=$1,543,610.00/$947,000.00
Plantwide Overhead Rate = $1.63
Total Manufacturing Cost = Direct Material + Direct Labor + overhead applicable
Total Manufacturing Cost = $18,700.00+$21,400.00 + $(21400*1.63 )
Total Manufacturing Cost = $ 74,982
Bid Price = Total Manufacturing Costs *1.5(150%)
Company's Bid Price = $74,982.00*1.5
Company's Bid Price = $ 112,473.00
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Answer:
Yes it should as the net present value at the firm WACC is positive $ 4,156.54
Explanation:
we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide
So we should check if the present value of the savings is greater or equal than the machine cost:
C $ 8,000
time 10 years
rate=WACC= 0.1
PV $49,156.5368
Net present value:
inflow - cost
49,156.54 - 45,000 = 4,156.54
Answer:
9.25
Explanation:
∵ The coordinates of midpoint of a line segment having end points and
are,
Given,
The coordinates of A are (-6, 13),
Coordinates of D are (2, 14),
If C is the midpoint of line segment AD,
Then the coordinates of C are,
Now, if B is the mid point of line segment AC,
Then the coordinates of B are,
Hence, the sum of the coordinates of B = -4 + 13.25 = 9.25