Answer:
$43.75 per direct labor Hour
Explanation:
Overhead rate is the rate of allocation of overheads based on an activity. In this question direct labor is used as an activity. Total overhead of a plant also includes the utilities of the plant.
Total Overhead of plant = $3,600,000 + $950,000 = $4,550,000
Direct labor hours = 104,000 hours
We can calculate the overhead rate after dividing total overhead with total direct labor hours.
Plant-wide overhead rate = $4.550,000 / 104,000 = $43.75 per direct labor Hour
Answer:
Entrepeneur
Explanation:
The entrepeneur is the person that is willing to take the financial risk linked to open up a business with the desire of obtain a profit.
Answer:
1. The financial advantage of accepting the special order is $20,910.
2. The relevant unit cost is the variable selling and administrative expenses of $1.40 per unit.
Explanation:
1. What is the financial advantage (disadvantage) of accepting the special order?
Since this order would not affect regular sales or the company's total fixed costs, it implies that only the variable costs will be considered to determine the financial advantage (disadvantage) of accepting the special order.
Therefore, we have:
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expenses = $2.40 + $2.00 + $0.90 + $1.40 = $6.70
Special order financial advantage (disadvantage) = (Special price per unit - Total variable cost per unit) * Units of special order = ($19.00 - $6.70) * 1,700 = $20,910
Therefore, the financial advantage of accepting the special order is $20,910.
2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units?
Since these units are inferior to the current model and must be sold through regular channels at reduced prices, the unit cost that is relevant for establishing a minimum selling price for the inferior units is therefore the variable selling and administrative expenses of $1.40 per unit.
This is false. a fad is a product that is popular for a SHORT amount of time .
