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Sphinxa [80]
3 years ago
14

The Anazi Leather Company manufactures leather handbags (H) and moccasins (M). The company has been using the factory overhead r

ate method but has decided to evaluate the multiple production department factory overhead rate to allocate factory overhead. The factory overhead estimated per unit together with direct materials and direct labor will help determine selling prices.Handbags = 60,000 units, 3 hours of direct laborMoccasins= 40,000 units, 2 hours of direct laborTotal Budgeted factory overhead cost = $360,000The company has two different production departments: Cutting and Sewing. The cutting department has a factory overhead budget of $80,000. Each unit will require 1 direct labor hour or a total of 100,000 direct labor hours.The Sewing Department estimates factory overhead in the amount of $280,000. Handbags require 2 hours of sewing time and Moccasins require 1 hour for a total of 160,000 labor hours.Calculate the amount of factory overhead to be allocated to each unit using direct labor hours.Moccasins $Handbags $
Business
1 answer:
Harlamova29_29 [7]3 years ago
3 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Handbags = 60,000 units, 3 hours of direct labor

Moccasins= 40,000 units, 2 hours of direct labor

Total Budgeted factory overhead cost = $360,000

Cutting:

The cutting department has a factory overhead budget of $80,000. Each unit will require 1 direct labor hour or a total of 100,000 direct labor hours.

Sewing:

The Sewing Department estimates factory overhead for $280,000. Handbags require 2 hours of sewing time and Moccasins require 1 hour for a total of 160,000 labor hours.

First, we will calculate the predetermined overhead rate for each department.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Cutting:

Estimated manufacturing overhead rate= 80,000/100,000= $0.8 per direct labor hour

Sewing:

Estimated manufacturing overhead rate= 280,000/160,000= $1.75 per direct labor hour.

Now, we can allocate the overhead based on direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Handbags:

Cutting= 60,000 units* 1 hour= 60,000 hours

Sewing= 60,000 units* 2 hour= 120,000 hours

Allocated MOH= 60,000*$0.8 + 120,000*1.75= $258,000

Mocassins:

Cutting= 40,000 units* 1 hour= 40,000 hours

Sewing= 40,000 units* 1 hour= 40,000 hours

Allocated MOH= 40,000* 0.8 + 40,000*1.75= $102,000

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As a contemporary manager, your employees will perceive that their opinions are more valued if: you provide settings where emplo
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Answer:

 you provide settings where employees have the opportunity to converse with all levels of management.

Explanation:

In simple words, employees feel motivated and values when they fell involved in the decisions inside the organisation, as these decisions affects them too.

    Generally, the core decisions in any organisation are taken by top managers but they too are dependent on lower level managers for the data they receive. Hence, a network should be set for employees so they can give their suggestions to  all levels of managers.

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Which kind of budget would cause the largest increase in a country's national
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Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic
lana66690 [7]

Answer:

1) 500K + 250Q ≤ 80,000

  100K+80Q≤ 30,000

K≥0

Q≥0

P= 400K + 200Q

2) zero king beds and 320 queen beds

or zero queen beds and 160 king beds

3) surplus variable

surplus variable is storage space

values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds

value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.

surplus is the extra amount available after all resources have been utilized to theri maximum.

4) none of the resources will be completely used. There will be surplus of both

Explanation:

1) Implicit variables: K≥0 ;   Q ≥ 0

Explicit variables:

500K + 250Q ≤ 80,000-------------------------- from investment constraint

  100K+80Q≤ 30,000 ---------------------- from storage space constraint

LP:  P= 400K + 200Q

2) See the attachment for profit maximization graph

3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.

Also,

if K=160 and Q=0, the inequality of investment gives

500(160) + 250(0)= 80,000

if K=0 and Q=320, the inequality of investment gives

500(0)+ 250(320) =80,000

if K=0 and Q = 320, the inequality of space gives

100(0) + 80(320)= 25,600

surplus= 30,000- 25,600= 4,400

if K=160 and Q=0, the inequality of space gives

100(160) +250(0)= 16000

surplus= 30000-16000= 14000

4) K=0 and Q=300

investment inequality gives

500(0) + 250(300) ≤ 80,000

75,000≤ 80,000

space inequality gives

100(0) + 80(300) ≤ 30,000

24,000≤ 30,000

Both space and investment are in surplus

6 0
3 years ago
In this exhibit (Monopoly Through Collusion), is an illustration of the situation in an industry that consists of two firms faci
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Answer: please refer to the explanation section

Explanation:

Assume we have two accompanies in the market Firm A and Firm B and the Demand curve be Dq. When Firm A and Firm B form a Monopoly through Collusion the will split the demand in half, each firm will act as if its demand curve is Dq/2.

Firm A = Dq/2,  Firm B = Dq/2. Firm A will supply Q/2 units and Firm B will supply Q/2 units. The Market Demand curve will the combined demand curves of both firms. Market Demand Curve = Dq/2 + Dq/2 or simply Dq

8 0
3 years ago
Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning
Nesterboy [21]

Answer:

$56,470.59

Explanation:

We need to calculate the principal amount  at the beginning of June

Data:

Interest (I) = $400

Rate(r) = 8.5%

Time(t) = 360 days

Solution:

We can calculate the principal amount by rearranging the Interest calculation formula

Formula: I = Prt

Note; Where P in the formula is the principal amount

Now rearrange the formula in order to find principal

P = I/rt

P = $400/(0.085)x(30/360)

P = $400/(0.085)x(0.08333333333333)

P = $400/(0.00708333333333

P = $56,470.59

Note: we only need to find the principal balance of June so we will consider only 30 days of June out of 360 days.

5 0
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