Answer: Capital investment in new machinery
Capital investment in new machinery enables a company to produce more over a given period of time as compared to the old machine.
It also helps the company to take advantage of new orders in the markets and helps it increase its share in catering to the demand for its products
Answer:
Allocated MOH= $100,800
Explanation:
<u>First, we need to calculate the predetermined allocation rate for ordering and receiving:</u>
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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Ordering and receiving= 504,000 / (700 + 1,080 + 1,720)
Ordering and receiving= $144 per order
<u>Now, we allocate to product AKM:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 144*700
Allocated MOH= $100,800
Answer:
The total cost of operating a truck would be $18000 as calculated below.
Explanation:
The total costs of operating the truck is a combination of fixed costs of $5500 per year and variable of $0.50 per mile ,hence the total cost function is given as:
TC=5500+0.50X
Where represents the number of miles driven per year.
Since X=25000 miles
TC=$5500+($0.50*25000)
TC=$5500+$12500
TC=$18000
The understanding here is that wages paid to the two employees working with the truck is already embedded in the fixed costs of $5500 per year, otherwise that would been given as a distinct cost entirely.
Answer:
D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Explanation: