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Oliga [24]
4 years ago
15

Whitman Printing has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing

overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2010, Whitman Printing decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that the number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:

Cost Pool Manufacturing overhead costs Activity
Design changes $120,000 200 design changes
Setups 640,000 4,000 setups
Inspections    80,000 16,000 inspections
Total manufacturing overhead costs $840,000

During 2010, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

Activity Money Managers Hospital Systems
Pages 60,000 76,000
Design changes 10 2
Setups 20 10
Inspections 30 38

When costs are assigned using the single cost driver, number of pages printed, then Hospital Systems will ___?

a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.
b. Will likely seek to do business with competitors
c. Is grossly under billed for the job, while other jobs will be unfairly over billed.
d. Is fairly billed because resources are allocated uniformly to all jobs.
Business
1 answer:
stellarik [79]4 years ago
5 0

Answer:

a. contribute too little to profits, and Wallace Printing will not want to accept additional work from the company.

Explanation:

For reaching any conclusion first we have to determine the cost assigned by using the single cost driver which is shown below:

= Rate × Pages printed

= ($840,000 ÷ 12,000,000) × 76,000

= $5,320

And  Cost assigned using ABC  is

= (120,000 ÷ 200) × 2 + (640,000 ÷ 4000) × 10 + (80,000 ÷ 16000) × 38

= $2,990

By this above calculation, the first option is chosen as the cost are high as compared to the ABC while on the other hand the profit would be NIL

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Your investment banker has presented you with the following list of business characteristics of a small company your company is
wariber [46]

Answer:

A

Explanation:

The list contains more weaknesses than strengths

The list of weaknesses are:

Excess manufacturing capacity relative to market; If you are producing more than you are selling then its a weakness

Large inventories; that dont sell its a weakness

Lack of management depth; means that management does not have a proper foundation

Management turnover; if you keep changing management it will affect the company as skilled workers will be leaving

The list of strengths are:

Cost advantages; cost advantage against your competitors is an added strength

Market leadership; having a large market share is equally an advantage

6 0
3 years ago
Faucet Company reported the following information for 2008: October November December Budgeted sales $620,000 $580,000 $720,000
max2010maxim [7]

Answer:

Cash receipt for the month of November is $600000

Explanation:

The receipt of the cash will be such that the sales made in a particular month will be calculated half in the month of sale and half in the next month. Thus, the cash receipt from the accounts receivables for the month of November will be,

Cash received from the October sales = 620000 * 0.5 = $310000

Cash received from the November sales = 580000 * 0.5 = $290000

Total cash receipt in the month of November will be,

Cash receipt - November = 310000 + 290000

Cash receipt - November = $600000

3 0
3 years ago
The main function of the Federal Reserve System is to:
PolarNik [594]

Answer:

D. Serve as the fiscal agent for the Federal government

Explanation:

The Federal Reserve System (FRS) is the central bank of the United States. FRS regulates the U.S. monetary and financial system.

The functions of Federal Reserve System includes;

1. conducting the nation's monetary policy

2. regulating banking institutions

3. monitoring and protecting the credit rights of consumers

4. maintaining the stability of the financial system

5. providing financial services to the U.S. government.

4 0
3 years ago
rhonda and jade both consider themselves to be african-american, although rhonda has much darker skin and hair than jade. when r
Neko [114]

As Rhonda has much darker skin than Jade, which contributed to why she was told there were no vacancies, then, this type of discrimination based on a color discrimination.

<h3>What is a discrimination?</h3>

It refers to an unfair treatment of people usually because of race sex or religion. It is also an unjust or prejudicial treatment of different categories of people based on the grounds of race, age, gender, disability, height etc.

However, the color discrimination involves treating someone unfavorably because of their skin color complexion. Therefore, as she was told there were no vacancies, then, this type of discrimination based on a color discrimination.

Read more about discrimination

brainly.com/question/4384645

#SPJ1

7 0
2 years ago
A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold a
Marina86 [1]

Answer:

Reserve price = $55

Expected revenue with a reserve price = $55

Expected revenue without a reserve price = $55

Explanation:

The auctioneer should set the reserve price siguiente:

Reserve price = ($30x0.5) + ($80x0.5) = $15 + $40 = $55

In the case of the expected revenue with the reserve price, only the bidder who has set a $80 value will pay the reservation fee, then the expected revenue will be the reserve fee of $55.

In the case of the expected revenue without the reserve price, both of the bidders will enter the auction for the item. Since the values are equally probable the expected profit without the reservation fee is equally $55.  

Hope this helps!

8 0
3 years ago
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