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Question
Superior Products Manufacturing identified the following data in its two production departments.
| Assembly | Finishing | |
| Manufacturing overhead costs | $225,000 | $420,000 |
| Direct labor hours worked | 6,600 DLH | 9,000 DLH |
| Machine hours used | 2,400 MH | 5,200 MH |
Make the following independent calculations (Round to two decimals).
a. Compute a plantwide overhead rate using machine hours as the allocation base.
b. Compute a plantwide overhead rate using direct labor hours as the allocation base.
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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Q:
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B. It includes the time value of money.
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.8264
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Q:
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Q:
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Q:
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Q:
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Q:
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42
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Q:
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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:
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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:
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$20 Nonproduction costs
$3 Fixed costs (in total) Overhead
$175,000 Nonproduction
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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.