1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ilya [14]
4 years ago
13

Smith Machining makes three products. The company’s annual budget includes $1,048,000 of overhead. In the past, the company allo

cated overhead based on expected capacity of 40,000 direct labor hours. The company recently implemented an activity-based costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information: Expected Cost Expected Activities Order processing $ 226,800 14,000 orders Setups 157,850 4,100 setups Milling 395,850 20,300 machine hours Shipping 267,500 25,000 shipments $ 1,048,000 (a) Calculate the company’s overhead rate based on direct labor hours. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ / DLH (b) Calculate the company’s overhead rates using the activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.) Order processing $ per order Setups $ per setup Milling $ per machine hour Shipping $ per shipment
Business
1 answer:
Flauer [41]4 years ago
6 0

Answer:

The computation is shown below:

Explanation:

a. The company overhead rate based on direct labor is

= Total Overheads ÷ Direct Labor Hours

= $1,048,000 ÷ 40,000

= $26.2 per hour

b) Overheads Rate using Activity Based Costing  is

= Cost ÷ Activity level

For  Order Processing, it is

= $226,800 ÷ 14,000 orders

= $16.2 per order

For setups, it is

=  $157850 ÷ 4,100 setup

= $38.5 per setup

For Milling, it is  

= $395,850 ÷ 20,300 machine hours

= $19.5 per machine hour

For Shipping

= $267,500 ÷ 25,000

= $10.7 per shipment

We simply applied the above formula so that the per unit could come

You might be interested in
What does the term "peak oil" refer to?
Nitella [24]
B. The point in time at which the maximum amount of oil is being pumped from underground. 

"Peak oil" refers to the measurement for the productivity and extent of extracting oil from the ground. The peak point is when the most oil is being extracted or pumped. If graphed, this would indicate the top of the crest or cycle for oil extraction for this particular site from underground. 
3 0
3 years ago
A(n) _____ staffing approach is compatible with an international strategy but can produce resentment in the host country.
Sladkaya [172]

Answer:

geocentric  

Explanation:

The staffing policy which which seeks for staffing the best people for main jobs throughout the organization, regardless of their nationality is called geocentric policy. It is very much compatible to any international strategy but there can be some resentments in the host country due to cultural myopia.

There can be also lack of some management transfers from the home country  to the host countries also from the host to home. There can be lack of integration also.

8 0
3 years ago
Research on a successful south african entrepreneur.write a short essay in which you include the following:
tia_tia [17]

<span>An example of a young and successful entrepreneur Mubarak Muyika of Kenya. AT age 20 years old, he founded Zagace Limited is a software helping companies evaluate their inventory: accounting, payroll, stock management, marketing, etc. Next is Bheki Kunene of South Africa. AT age 27, he founded Mind Trix Media providing jobs and a profit.</span>

8 0
4 years ago
The council of better business bureaus is a national organization devoted to consumer service and _____.
Vladimir [108]
The council of better business bureaus is a national organization devoted to consumer service and business self-regulation.
5 0
3 years ago
Which of the following statements is a fact about buyer behavior?
vladimir1956 [14]

Answer:

C

Explanation:

A p e x

5 0
3 years ago
Other questions:
  • Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Compan
    14·1 answer
  • Authority is decentralized, tasks and rules are flexible, and employees are given a lot of freedom at reliable copy products, wh
    15·1 answer
  • A rule that allows financial institutions to calculate simple interest using 360 days in a year is called the
    10·1 answer
  • Herb Kelleher, founder and long-time chief executive officer of Southwest Airlines, was known for inspiring and motivating his e
    15·1 answer
  • Octavia has received an email from a customer, asking her a question about a product. unfortunately, octavia doesn't know the an
    6·2 answers
  • Isaac only has $1,090 today but needs $1,979 to buy a new computer. How long will he have to wait to buy the computer if he earn
    7·2 answers
  • Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricing information. Each dealer o
    5·1 answer
  • Camrio Consultants conducted a meeting to make a decision about continuing a business contract with a client. The manager presid
    13·1 answer
  • The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea
    12·1 answer
  • About 20 years ago, Xx-zobam, Inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. Sturdy Light b
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!