1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gennadij [26K]
3 years ago
6

Big Red Company, a manufacturer of computer hardware components, uses direct labor cost to allocate its production overhead. In

its hard-drive division, it allocates $12.50 per direct labor hour as the standard rate. The overhead includes supervision and machine setup cost. SCSI and SATA drives take the same time to produce, but the setup time for SATA is three times as long as the setup time for SCSI. Which statement is true about overhead allocation for the two drives?
А SATA carries more than its full share of factory overhead.
B Overhead allocation is fair for both drives.
C. SATA carries less than its full share of factory overhead.
D Overhead allocation cannot be directly related to products.
Business
1 answer:
aliina [53]3 years ago
4 0

Answer:

Option C is correct.

Explanation:

Big Red Company allocates $12.50 per direct labor hour as the standard rate and uses direct labor cost to allocate its production overhead.

However, he setup time for SATA is three times as long as the setup time for SCSI although SCSI and SATA drives take the same time to produce.

This shows that SATA carries less than its full share of factory overhead.

You might be interested in
Describe the main differences for revenue spending between ""for profit"" companies and ""not for profit"" companies. Describe h
Ket [755]

Answer with Explanation:

The analysis includes the assessment of Non profit organization's efficiency both in fundraising and spending, economy of operations and the effectiveness of the operations. This can be explained with an example. For example if the non profit organization has an objective to increase the book reading habit because it believes that the people who read more are not violent personalities and in this way they can reduce the crime rate. So it has established number of libraries in different communities. Now we will look at at what cost it has acquired these libraries (Economy), how much people have visited these libraries (Efficiency) and whether the crime rate in the community has sufficiently fallen or not (Effectiveness). So this helps in understanding whether the objective was met or not.

However when we analyze the financial statement of profit making organizations then we use many profit and efficiency ratios to assess the performance of the organization. These ratios can also be helpful if the NGO is in business as well. But most of the NGOs rely on grants and these grants are subjective to their previous performance.

The NGOs are also required to publish reports according to the grant provider's enforced accounting principles, rules and guidelines. Just take the example of US-AID program that requires the Non profit organization to publish financial reports in specific format and enforces different Generally Acceptable Principles to be used in preparing these financial reports. So yes it is much more different in analyzing the financial statements of Non profit organization and profit making organization.

8 0
3 years ago
Reserves$72Checkable Deposits$240 Securities110Loans from Federal Reserve Banks2 Loans60 Consolidated Balance Sheet: Federal Res
mamaluj [8]

Answer:

d. directly increase by $2 and the money-creating potential of the commercial banking system will increase by $6

Explanation:

Note: The organized table of the question is attached as picture below

Total increase in money supply = (1/Reserve ratio)*2

Total increase in money supply = (1 / 0.25) * 2

Total increase in money supply = 4 * 2

Total increase in money supply = 8.

Out of which 2 is directly increased because fed deposits 2 into checking deposits and 6 is indirectly increased.

5 0
3 years ago
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
nadezda [96]

Answer:

The correct answer is option (c) $264 underapplied

Explanation:

Given data;

Direct labour hour = 22160

Total Manufacturing overhead cost= $585,024

Actual direct labor hour = 22150

Actual Manufacturing overhead cost = $585024

Calculating the Predetermine overhead rate using the formula;

Predetermined Overhead rate=Total Overhead Cost/Total Direct Labor Hour

Predetermined Overhead rate = $585024/22160

                                                      =$26.4 per labor hour

To determine the under-applied amount of overhead cost, we use the formula;

Under−Applied amount= Estimated Overhead Cost*Actual Overhead Cost

Substituting into the formula, we have

                          (22150*26.4)-585024

      Under applied  = $ 264

                       

8 0
3 years ago
In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its
Dmitry [639]

Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

GOOD LUCK

8 0
3 years ago
How do price changes affect equilibrium?<br> (Gradpoint)
irina [24]

Answer:

By Serving As A Tool For A Distributing Goods And Services.

8 0
3 years ago
Other questions:
  • How has banking changed in the past 200 years of our nation's history?
    8·1 answer
  • Holiday Inn would like to estimate the satisfaction level of its customers. A sample of 25 hotels were selected and the customer
    6·1 answer
  • Baldwin's turnover rate for this year is 6.27%. This rate is projected to remain the same next year and no further downsizing wi
    7·1 answer
  • Kelly has joined Drake's team. Drake sends Kelly an email explaining details of the project that she will be working on. Which o
    10·2 answers
  • Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year.
    8·1 answer
  • he accounting records of Baddour Company provided the data below. Net loss $ 4,350 Depreciation expense 6,320 Increase in salari
    6·1 answer
  • Cheyenne Corp. had the following transactions during 2017:
    8·1 answer
  • Given Qx=20-5p where price is 3 units find the price elasticity<br><br>​
    7·1 answer
  • hina's growth rate of real GDP in 2005 and 2006 was 10.5 percent a year and its population growth rate was 0.5 percent a year. I
    10·1 answer
  • Help help businesses please please
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!