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Question
A companys total expected overhead costs and related overhead data are shown below.
| Department A | Department B | |
| Direct labor hours | 75,000 DLH | 30,000 DLH |
| Machine hours | 3,000 MH | 6,000 MH |
| Manufacturing overhead costs | ? | ? |
| Departmental overhead rate | $2.40 per DLH | $36 per MH |
a. Compute estimated manufacturing overhead costs for Department A.
b. Compute estimated manufacturing overhead costs for Department B.
Answer
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Related questions
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Q:
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Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
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Q:
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B. It includes the time value of money.
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D. It cannot be used if a company records depreciation.
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Q:
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.8264
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Q:
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B. Internal rate of return, payback period, and accounting rate of return.
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Q:
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B. To discount all future and past cash flows.
C. To earn a satisfactory return on investment.
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Q:
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Q:
What is the difference between an opportunity cost and a sunk cost?
Q:
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Q:
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Dept. R
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B. $500 decrease
C. $4,000 increase
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Q:
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$62 Variable costs per unit
42
25 A. 15,000 croquet sets.
B. 12,000 volleyball games.
C. 4,000 croquet sets and 10,000 volleyball games.
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E. 2,500 croquet sets and 10,000 volleyball games.
Q:
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76 A. Both product A and product B should be processed further.
B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
Altertech Inc. manufactures a product that contains a circuit board. The company has always purchased this circuit board from a supplier for $32 each. Altertech recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the circuit board instead of buying it. The company prepared the following per unit cost projections of making the circuit board, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 110% of direct labor cost. Direct materials
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A. Income will decrease by $7 per unit.
B. Income will increase by $7 per unit.
C. Income will increase by $12 per unit.
D. Income will decrease by $12 per unit.
E. Income will increase by $10 per unit.
Q:
A company expects to produce and sell 7,000 units of a single product. The following additional company information is available: Variable costs (per unit) Production costs
$20 Nonproduction costs
$3 Fixed costs (in total) Overhead
$175,000 Nonproduction
$14,000 Compute this companys total cost per unit.
A. $23
B. $45
C. $27
D. $50
E. $5
Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.