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3 years ago

PA10.

Business

1 answer:

nevsk [136]3 years ago

8 0

Answer:

Traditional allocation method

Overhead allocation rate

= Budgeted overhead

Budgeted machine hours

= $1,050,000

50,000 hours

= $21 per machine hour

Overhead allocation

Product A = $21 x 10,000 = $210,000

Product B = $21 x 40,000 = $840,000

Using activity-based costing

Cost driver rates

Machine set-up = $250,000

10,000 set-ups

= $25 per set-up

Assembly = $300,000

60,000 parts

= $5 per part

Machine maintenance = $500,000

50,000 hours

= $10 per machine hour

Overhead allocation based on ABC

A B

$ $

Machine set-up 175,000 75,000

Assembly 125,000 175,000

Machine maintenance 100,000 400,000

Total cost 400,000 650,000

Explanation:

In traditional allocation method, there is need to calculate the overhead allocation rate, which is the ratio of budgeted overhead to budgeted machine hours. Then, the overhead allocation rate will be used to multiply the machine hours for each product in order to obtain the overhead allocated.

In activity-based costing, there is need to calculate the cost driver rates, which is the ratio of overhead of each cost pool to the total cost driver of each cost pool. Then, we will multiply the cost driver rate by the cost driver for each product in order to obtain the allocated overhead.

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You are a project manager leading an IT development project. Halfway through your project, you realize that you need to hire an

aliina [53]

Answer:

The project manager can convince the project sponsors with the following reasons which are,

(1) Telling the sponsors the additional benefits that the team will have once a member enters the team.

(2)Informing the sponsors about the work not completed due to lesser number of workers.

(3)Informing the sponsors the additional benefits that the team will have once a member enters the team.

For on boarding a new worker the project manager does the following which includes:

(1)it is very necessary to share the agendas and charters of the previous meetings of the project to help individuals to familiarize with the project scope and goals.

(2)Having a one one meeting a with the individual and discussing with him/her about the project and solve his/her issues.

(3) Doing a formal introduction of the new member to both the project team and stakeholders of the project.

Explanation:

Solution:

In the half way of the project, the project manager can convince the project sponsors in the following ways shown below:

Informing the sponsors about the work not completed due to lesser number of workers
Informing the sponsors about the delays taking place due to shortage of members in the team
Telling the sponsors the additional benefits that the team will have once a member enters the team
Convincing the sponsors by discussing and talking with him/her the various drawbacks of not having the required numbers of members in the team.

For getting a new member on board for the project, it is very important to share the agendas and charters and minutes of the previous meetings of the project to enable individuals to familiarize with the project scope and goals.

Secondly, a one one meeting and discussion with the individual must be organized to brief him/her about the project and solve his/her issues.

Finally the new member must be introduced to both the project team and stakeholders of the project.

5 0

4 years ago

Vanessa Company is evaluating two projects. project 1 is a project requiring a capital expenditure of 814,400. the project has a

Olegator [25]

Answer:

The average rate of return on investment using:

+ Straight line method: 23.58%

+ Net present value: 17.85%

Explanation:

* The average rate of return on investment using straight line method:

We have Average rate of return = Average net profit/ Average investment

with average net profit = (90,000 + 80,000 + 40,000 + 30,000 + 240,000)/5 = $96,000

average investment: (investment at the beginning + investment of the end) /2 = 814,400/2 = 407,200

=> Average rate of return = 96,000 / 407,200 = 23.58%

* The average rate of return on investment using net present value:

The average rate of return is the internal rate of return on the project which is the rate that brings the net present value to zero.

Denote the rate as x => (1+x)^(-t) is the discount rate of year t. Denote 1+x as a, we have:

-814,400 + 210,000/a + 200,000/a^2 + 160,000/a^3 + 150,000/a^4 + 720,000/a^5 = 0 <=> a = 1.1785

=> x = 17.85%

6 0

4 years ago

The process of identifying other organizations that are best at some facet of your operations and then modeling your organizatio

TiliK225 [7]

Answer:

The correct answer is letter "E": benchmarking.

Explanation:

Benchmarking refers to a study a company makes of the best performers of its industry in an attempt to identify their strategies so they can be compared to the ones of the firm conducting the research. The comparison aims to spot improvement areas and to adapt the good practices according to the business operations. Benchmarking should be conducted periodically by institutions that attempt to keep up to the pace of leading competitors.

5 0

3 years ago

Which statement accurately describes the effect of the federal government rapidly reducing government expenditures?

olganol [36]

The statement which accurately describes the effect of the federal government rapidly reducing government expenditures is D.Unemployment rates will increase because federal spending makes up a large part of the economy. Since the goverment keeps up money for particular economic expenses, it means that the salaries will be decreased and the level of firing people wold decrease. Therefore, companies will not be able to offer a escent salary to their new empoyees which means that unemployment rate will grow.

4 0

3 years ago

Butler Corporation is considerIng the purchase of new equipment costing $81,000. The projected annual after-tax net income from

Dahasolnce [82]

Answer:

d. $(6,642)

Explanation:

The present value is the sum of after tax cash flows.

Present value can be calculated using a financial calculator

Cash flow in year 0 = $-81,000

Cash flow each year in year 1 to 3 = $27,000 + $2,900 = $29,900

I = 10%

Present value = $(6,642)

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago