Answer:
Estimated manufacturing overhead rate= $32 per direct labor hour
Explanation:
Giving the following information:
At the beginning of the current year, management estimated that $672,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model and 10,000 units of the rigid model.
The flexible model requires 3.0 hour(s) of direct labor time per unit, and the rigid model requires 1.50 hour(s).
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=
Estimated manufacturing overhead rate= 672,000/(2000*3 + 10000*1.5)= $32 per direct labor hour
Answer:
Explanation:
Using future annuity formula
Fv = Pmt ( (1+r)ⁿ -1 )/ r
+ 1 = (1+r)ⁿ
In ( + 1) = n In ( 1+r)
n = In ( + 1) / In ( 1 + r)
FV, future value = $10,000, Pmt, periodic payment per year = $1,100, r rate = 11.82% = 0.1182 and n = number of years
n = 0.7297 / 0.11172 = 6.53 years approx 7 years
the last year payment will actually be less than $1,100
Answer:
C) allows existing customers to upgrade to a newer model by trading in their older model.
D) though it previously offered free delivery, now charges for deliveries made outside the city.
Explanation:
If ABC company wants to change low profit customers into more profitable customers, they need to:
- encourage low profit clients to buy larger quantities by offering promotions (e.g. get a discount if you buy a bike, helmet and other gear all together)
- forgo certain services or features to low profit customers, e.g. free delivery only for expensive bikes
- increase the price of your product for low profit customers (e.g. charge a delivery cost for cheap bikes)
- offer upgrading options to low profit clients
Answer: True
Explanation: There is always that opportunity to perfect existing industry standards and several analysis would have already be done which saves you a great deal of financial stress and a possible loss.
