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Question
Inside Out, Company designs custom showroom spaces in interior design marts across the country. The following data pertain to a recent reporting period.
| Design Department | ||
| Client consultation | 750 contact hours | $127,500 |
| Drawing | 1,200 design hours | $96,000 |
| Models | 15,000 square feet | $21,000 |
| Project Management | ||
| Supervision | 225 days | $40,500 |
| Billings | 150 jobs | $54,000 |
Required
a. Use ABC to compute overhead rates for each activity.
b. Assign costs to a 3,000 square-foot job that requires 70 contact hours, 20 design hours, and 14 days to complete.
Answer
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Related questions
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Q:
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Q:
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Q:
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A. Total cost times markup percentage.
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Q:
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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.