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NikAS [45]
3 years ago
6

A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is consid

ered a separate cost center for IDC allocation. The remaining seven are grouped as one cost center, CC190. Operating hours are used as the allocation basis for all sta- tions. A total of $250,000 is allocated to the de- partment for next year. Use the data collected this year to determine the IDC rate for each center. Cost Center CC100 CC110 CC120 CC190 IDC Allocated $25,000 $50,000 $75,000 $100,000 Operating Hours 800 200 1200 1600
Business
1 answer:
julsineya [31]3 years ago
7 0

Answer:

CC100  has $31.25 per hour

CC11O has $250 per hour

CC120 has $62.5 per hour

CC190 has $62.5 per hour

Explanation:

The IDC rate for each department would be the department IDC allocated divided by operating hours as shown below:

CC100

IDC rate=$25,000/800=$31.25 per hour

CC110

IDC rate=$50,000/200=$250 per hour

CC120

IDC rate=$75,000/1200=$62.5 per hour

CC190

IDC rate=$100,000/1600=$62.5 per hour

Judging from the IDC rates of the departments,department CCC110 seems to have the highest IDC rate per hour,which implies that each hour is charged with $250 against the CC100 where each operating hours is just $31.25.

The higher the IDC rate in a department the higher the cost of the output of that department since the cost has to be recovered from output.

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Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cell product t
creativ13 [48]

Question Completion:

Figures in thousands (000):

Product Segment    Capacity Next Round

Dug             Core                1200

Dune     Core                1450

Beetle     Core                1040

Bat             Core                1050

New     Core                100

Adam     Core               1200

Answer:

Chester Company

Competitive Intelligence Report:

Based on the increased 10% capacity, the industry can produce 6,644 units.

Explanation:

a) Data and Calculations:

Product Segment    Capacity Next Round    Increased Capacity (1.1)

Dug             Core                1,200                    1,320

Dune     Core                1,450                    1,595

Beetle     Core                1,040                     1,144

Bat             Core                1,050                    1,155

New     Core                   100                        110

Adam     Core               1,200                    1,320

Total                                     6,040                   6,644

b) Each of the core segment products can be increased by the increased capacity factor of 1.10 (1 + i), where "i" is the rate of capacity increase.  Alternatively, the total capacity in the current period can be increased by the increased capacity factor.  Either way, produces the same result of an increased capacity of 6,644 units that the industry can produce.  The result also shows that the options provided in the question are not correct.  They must have been based on other assumptions.

7 0
3 years ago
Mark produced 9 cans of sauce with 3 pounds of tomatoes. When he increased to 5 pounds, he produced 13 cans. What is the margina
MakcuM [25]

Answer:

Marginal Product is 2

Explanation:

Marginal Product (MP)  is defined as the ration of change in quantity of output produced to the change in quantity of input raw material

Change in quantity of input raw material = 5 -3 = 2

Change in quantity of output of products = 13 - 9 = 4

Marginal Product (MP) = \frac{4}{2} = 2

Marginal Product is 2

8 0
3 years ago
Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital alloc
Vesnalui [34]

Answer:

d. II and III

Explanation:

Capital Allocation Line is a graphical representation of risk measurement for risky & risk free assets.

Risk aversion is the tendency of investors to prefer less expected payoff with certainty, over more expected payoff with risk & uncertainty. So, More risk averse investors have their investment concentration in more risk free securities than risky portfolio components, compared to less risk averse investors.

Investors expected utility is derived from their expected income or wealth payoff. Investors choose the portfolio, whose  expected income level gives them corresponding maximum expected utility

3 0
4 years ago
Becoming future proof means ensuring that you _________.
poizon [28]
C) the people that purchase goods and services
4 0
3 years ago
Pizza is a normal good. if students' incomes at your college increase, the effect on pizza will be:________
erica [24]

Answer:

Normal goods have a positive relationship with income & purchasing power parity (PPP) with an increase in income ( I )  consumption of normal goods also increased respectively.

So, with the increase in students' income consumption of Pizza will be increased

As normal goods have a positive income elasticity of demand coefficient but it will be less than one.

Explanation:

Let’s discuss the normal goods, as a decrease in the price of normal goods its consumption will boost or increase. As when normal goods become cheaper, they will be consumed much as we know that people will consume them because of the logical reasoning of cheaper than its substitutes. Likewise, with an increase in income, its consumption will also increase but at a stage where it will become inelastic or constant.

You can learn more about Economics

at brainly.com/question/28179544

#SPJ4

4 0
2 years ago
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