Explain how operation management differs in manufacturing and service firms.

The Rowe Corporation uses a standard cost system. The company applies manufacturing overhead to units of product based on machin

Viefleur [7K]

Answer:

Allocated overhead= $216,000

Explanation:

Giving the following information:

Estimated overhead= $225,000

Estimated machine-hours= 25,000

At standard, each unit of finished product requires 3 machine-hours. Units of product completed 8,000 units

<u>To allocate overhead, we need to use the standard number of machine-hours that would take to produce 8,000 units.</u>

First, we need to determine the estimated overhead rate:

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

Estimated manufacturing overhead rate= 225,000/25,000= &9 per machine hour

Now, we can allocate overhead:

Allocated overhead= 9*(8,000*3)= $216,000

7 0

4 years ago

Cabell Products is a division of a major corporation. Last year the division had total sales of $25,720,000, net operating incom

liberstina [14]

Answer:

Turnover = 4.02

Explanation:

Below is the given values:

Total sales = $25720000

Average operating assets = $6400000

Use the below formula to find the turnover.

Turnover = total sales / Average operating assets

Now plug the values in the formula and divide the total sales from average operating assets.

Turnover = 25720000 / 6400000

Turnover = 4.02

4 0

3 years ago

Which is true of price-setters? A. Their pricing approach emphasizes target costing. B. Their pricing approach emphasizes cost

olchik [2.2K]

Answer:

Option "B" is the correct answer to the following question.

Explanation:

Price-setters is a community or individual, who set a fair price for a particular commodity or product, these types of Individual or community has a higher quality of goods or product that gave him the ability to set his prices.

Other firms are called price taker who depend on the market price

Price-setters firms use a pricing approach.

5 0

4 years ago

A friend asks to borrow $ 50 from you and in return will pay you $ 53 in one year. If your bank is offering a 5.7 % interest rat

Sergio [31]

Answer:

52.85 / 50.14 / yes

Explanation:

the key to answer this question is to understand the logic of present values / future values:

$FV=PV*(1+i)^{n}$

$PV=FV*(1+i)^{-n}$

where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:

a. if we deposit today 50, we are been asked to calculate the future value, so:

$FV=50*(1+0.057)^{1}$

$FV=52.85$

b.if we want to have 53 in one year, we are been asked to calculate a present value:

$PV=53*(1+0.057)^{-1}$

$PV=50.14$

c. is clear that is better to borrow to the friend because in one year he will pay more than bank

4 0

3 years ago

You just saw a billboard that states "85% of doctors use our product!" What technique has the advertising company used to persua

Andreas93 [3]

Answer:

The advertising used the Scientific evidence technique.

Explanation:

his technique attempts to appeal the masses to use the advertised product, by providing the audiences with survey results. The advertisers often use statistical evidences and market surveys to publicize their product.

6 0

3 years ago