Answer:
The amount of overhead debited to Work in Process Inventory should be: a. $182,00
Explanation:
The Overheads are Applied in the Manufacturing Costs as:
Budgeted Rate × Actual Activity for the Month
At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)
In our Case, the predetermined overhead rate is 70% of direct labor cost
<em>Thus we need to find the Direct Labor Cost first</em>:
Total Labor Costs $360,000
<em>Less </em>Indirect Labor Costs<em> </em>$100,000
Direct Labor Cost $260,000
<em>Therefore Overheads applied would be determined as:</em>
= $260,000 × 70%
= $182,000
Answer:
The journal entries are recorded below;
Explanation:
July 1.
1. Inventory Dr.$6,700
Accounts Payable Cr.$6,700
2. A/R Creek Co. Dr.$950
Sales Revenue Cr.$950
Cost of Goods Sold Dr.$558
Inventory Cr.$558
3. inventory Dr.$125
Cash cr.$125
8. Cash Dr.$2,400
Sales Revenue Cr.$2,400
Cost of Goods Sold Dr.$2,000
Inventory Cr.$2,000
9. Inventory Dr.$2,400
Accounts Payable-Leight Co Cr.$2,400
11. Accounts Payable Dr.$400
Inventory Cr.$400
12. Cash Dr.$931
Discount Allowed Dr.$19
A/R CreekCo. Cr.$950
16. Accounts Payable Dr.$6,700
Bank Cr.$6,566
Inventory Cr.$ 134
19. A/R Art Co Dr.$1,200
Sales Revenue Cr.$1,200
Cost of Goods Sold Dr.$800
Inventory Cr.$800
21. Allowance on Goods Dr.$200
A/R Art Co. Cr.$200
24. Accounts Payable Dr.$2,400
Bank Cr.$2,352
Inventory Cr.$48
30. Bank Dr.$1,000
A/R Art Co.(1,200-200) Cr.$1,000
31. A/R Creek Co. Dr.$6,900
Sales Revenue Cr.$6,900
Cost of Goods Sold Dr.$5,500
Inventory Cr.$5,500
Answer: True
Explanation:
Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.
Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.
Back in 2015, McDonald’s was struggling. In Europe, sales were down 1.4% across the previous 6 years; 3.3% down in the US and almost 10% down across Africa and the Middle East. There were a myriad of challenges to overcome. Rising expectations of customer experience, new standards of convenience, weak in-store technology, a sprawling menu, a PR-bruised brand and questionable ingredients to name but a few.
McDonald’s are the original fast-food innovators; creating a level of standardisation that is quite frankly, remarkable. Buy a Big Mac in Beijing and it’ll taste the same as in Stratford-Upon Avon.
So when you’ve optimised product delivery, supply chain and flavour experience to such an incredible degree — how do you increase bottom line growth? It’s not going to come from making the Big Mac cheaper to produce — you’ve already turned those stones over (multiple times).
The answer of course, is to drive purchase frequency and increase margins through new products.
Numerous studies have shown that no matter what options are available, people tend to stick with the default options and choices they’ve made habitually. This is even more true when someone faces a broad selection of choices. We try to mitigate the risk of buyers remorse by sticking with the choices we know are ‘safe’.
McDonald’s has a uniquely pervasive presence in modern life with many of us having developed a pattern of ordering behaviour over the course of our lives (from Happy Meals to hangover cures). This creates a unique, and less cited, challenge for McDonald’s’ reinvention: how do you break people out of the default buying behaviours they’ve developed over decades?
In its simplest sense, the new format is designed to improve customer experience, which will in turn drive frequency and a shift in buying behaviour (for some) towards higher margin items. The most important shift in buying patterns is to drive reappraisal of the Signature range to make sure they maximise potential spend from those customers who can afford, and want, a more premium experience.
I hope this was helpful
Command – decisions are made with no involvement.
Consult – invite input from others.
Vote – discuss options and then call for a vote.
Consensus – talk until everyone agrees to one decision
