What objective can a smart budget fulfill for an individual as well as an organization?

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, t

Lana71 [14]

Answer:

Overhead rate is $30.4

So option (c) is correct option

Explanation:

We have given total estimated overhead = $85120

Estimated direct labor hours = 2800

Actual manufacturing overhead for the year = $86870

Actual labor hour = 2700

We have to find overhead rate for the year

Overhead rate is equal to the ratio of estimated overhead to estimated labor hour

Therefore overhead rate $=\frac{85120}{2800}=30.4$ $

So option (c) is correct

3 0

3 years ago

Bannister Co. is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing

ratelena [41]

Answer:

Production total cost= $104,400

It is more profitable to buy the product.

Explanation:

Giving the following information:

Production costs (1,000 units):

Direct material $ 45,000

Direct labor $30,000

Factory overhead (30% is variable) 98,000

Buy:

1,000 units from an outside supplier for $100,000.

<u>I will assume that the fixed overhead is not avoidable, therefore it should not be taken into account for the decision making.</u>

Production total cost= 45,000 + 30,000 + (98,000*0.3)

Production total cost= $104,400

It is more profitable to buy the product.

5 0

3 years ago

Differences between business markets and consumer markets include all of the following EXCEPT ________. A) nature of the buying

maw [93]

Answer:

E should be the correct answer

5 0

3 years ago

In competitive settings, profits will lead firms to _________________ and losses will lead firms ___________, so the incentives

wel

Answer:

The correct answer is: enter the market; exit the market.

Explanation:

In a perfectly competitive market, there is no restriction on entry and exit of firms. So profits will attract other potential firms to join the market. And when the existing firm incurs losses it will cause them to stop operating and exit the market.

Because of this, the firms in competitive settings are motivated to produce at a low cost and they come up with new ideas to please customers so that they earn a profit.

5 0

3 years ago

Your client's investment portfolio is 50% growth stocks, 10% foreign stocks, and 40% blue-chip stocks. If the client is interest

Vlad [161]

Your client's investment portfolio is 50% growth stocks, 10% foreign stocks and 40% blue chip stocks. If the client is interested in further diversification which mutual fund would best meet that goal? Aggressive growth fund. Emerging market fund.

3 0

4 years ago