The correct answer is C. Functional decomposition
Answer:
Job Q's unit cost = $1,026.67
Explanation:
Job Q
actual machine hours used
molding 800:
allocated fixed overhead = (800/2,500) x $10,000 = $3,200
variable overhead = 800 x $1.40 = $1,120
sub-total = $4,320
fabrication 900:
allocated fixed overhead = (900/1,500) x $15,000 = $9,000
variable overhead = 900 x $2.20 = $1,980
sub-total = $$10,980
total overhead = $15,300
direct labor = $7,500
direct materials = $8,000
total costs for Job Q = $30,800
Job Q's unit cost = $30,800 / 30 units = $1,026.67
Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
Answer:
Judgment.
Explanation:
Intuitive decision making uses ____ to make decisions. Judgment.
