It is called the vertical integration. It is where an organization grows its business operations into various strides on a similar creation way, for example, when a maker possesses its provider or wholesaler. vertical integration can enable organizations to lessen costs and enhance efficiencies by diminishing transportation costs and decreasing turnaround time, among different favorable circumstances.
Answer:
See answers below
Explanation:
1 The predetermined overhead rate
= Cost of manufacturing overhead / Cost driver.
Where cost driver
= labor cost / labor rate
= $240,192 / $12.51
= 19,200 hours
Expected overhead
= depreciation + supervisor + supplies + property tax
= 56,500 + 140,000 + 46,400 + 27,750
Total overhead = 270,650
Overhead rate = 270,650 / 19,200
= 14.10 per hour
2. The amount t of applied overhead for of 18,500 actual hours were worked on
= 18,500 hours × $14.10
= $260,850
Answer: False
Explanation:
When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive. In evaluating independent alternatives, each alternative is compared against the "Do Nothing" alternative.
For mutually exclusive alternatives, the do-nothing is a viable option when revenue alternatives are involved.
Answer:
Purchases= $26,550
Explanation:
Giving the following information:
Production:
January= 2,900 units
February= 3,600 units
Norton budgets $20 per unit for direct materials.
Beginning inventory raw materials= $38,650.
Desired ending inventory direct materials= 10% of the next month's direct materials needed for production.
To calculate the purchases of direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 2,900*20 + (3,600*0.1)*20 - 38,650
Purchases= $26,550
Answer:
C. yes, she still makes a profit by selling the 3-color application.
Explanation:
As for the information provided,
Cost for 1 color pin striping job = $35
Cost for three color pin striping job accordingly = $35
3 = $105
Price charged for pin striping is as follows:
For 1 color = $95
For 3 colors = $175
Even on 3 color striping there is a profit of $70, thus, it should be sold.
As there is no loss, although the profit margin is decreased as a percentage of cost when compare to margin on 1 color pin striping.
Thus, correct option is Statement C.