Answer:
Manufacturing cost= $92.5
Explanation:
Giving the following information:
Predetermined overhead rate= $4.2 per machine hour
Job 664:
2.5 machine hours
$26.00 of direct materials
4 hours of direct labor for $14 per hour.
<u>To allocate overhead, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 4.2*2.5= $10.5
<u>Now, the manufacturing cost:</u>
Manufacturing cost= 10.5 + 26 + 4*14
Manufacturing cost= $92.5
Answer:
I think letter A is the right answer
Answer:
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Explanation:
Giving the following information:
The variable manufacturing overhead is charged to production at a rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.51 and $4.73, respectively. Normal production is 28,300 curtain rods per year.
A supplier offers to make a pair of finials for $13.20 per unit.
Fixed costs are a sunk cost, therefore it is not taken into account.
Make in house:
Unitary cost= 3.51 + 4.73 + (4.73*0.63)= $11,22
Outsource:
Unitary cost= 13.20
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
<span>The company could consider diversifying when sales are beginning to slow and there is a way to leverage some of the business's core competencies in other areas that would be more competitive. In addition, this could allow the business to not worry about being "all-in" in a certain area, where that area's success or failure could lead to the entire business thriving or failing. By diversifying itself, the business can also lower production and sales costs or increase overall sales.</span>
<span>Categorical -Homeowner
Ratio -Credit Score
Ratio-Years of Credit History
Ratio-Revolving Balance
Ratio-Revolving Utilization
Categorical-Decision
In this case variables that are Ratio are measurable such as credit score, years of credit history, etc. While on the other hand Homeowner and Decision are categorical as they can also be categorized into categories and cannot be measured.</span>