None of them is the answer
When allocating their assets bankers take into account their reserve equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated.
Answer:
The correct answer is letter "C": Orientation.
Explanation:
The primary organization-specific factors are <em>orientation, size of the organization, </em>and<em> degree of centralization</em>. Orientation <em>refers to the function of a company that controls the decisions in regards to purchases</em>. The size of the organization implies decision making will be more centralized in larger firms while more decentralized in smaller firms. Finally, the degree of centralization states that even in highly autonomous corporations, some purchases might be subject to the approval of a manager who confirms the need for the assets being acquired.
<em>Because in Anchor Inc. the purchase decisions are made by engineers the orientation organization-specific factor is more relevant in that company</em>.
Answer and Explanation:
The computation is shown below:
a.
Contribution per unit
= Selling price per unit - Variable costs per unit
= $300 - $200
= $100 per unit
Now
Break even point (units)
= Fixed costs ÷ Contribution margin per unit
= $14,000,000 ÷ $100
= 140,000 units
And,
b)
Sales units required for a target profit of $1,400,000
So,
= (Fixed costs + Target profits) ÷ Contribution margin per unit
= ($14,000,000 + $1,400,000) ÷ $100
= 154,000 units
Answer:
overhead rate: 17.5
Explanation:
The difference between applied an actual overhead is calculated as follows:
actual hours x overhead rate - actual cost = over or underapplied overhead
underapplied means actual were higher than applied
while, overapplied means the actual cost were lower.
Based on this information we can set up the foermula as follows:
overhead rate x 32,000 -540,000 = 20,000
now we solve for the rate:
rate = (20,000 + 540,000) / 32,000 = 17.5
