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postnew [5]
2 years ago
13

Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 400,000 units are expect

ed to be produced requiring 1.2 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 Department 2 Manufacturing overhead costs $ 2,530,000 $ 2,752,000 Direct labor hours 168,000 DLH 110,000 DLH Machine hours 30,000 MH 8,000 MH
Business
1 answer:
snow_tiger [21]2 years ago
8 0

Answer:

$166.8

Explanation:

Given that,

Units expected to produced = 400,000 units

Machine hours required = 1.2 each

Manufacturing overhead costs:

= Department 1 + Department 2

= $2,530,000 + $2,752,000

= $5,282,000

Total Machine hours:

= Department 1 + Department 2

= 30,000 MH + 8,000 MH

= 38,000 MH

Overhead cost per machine hour:

= Manufacturing overhead costs ÷ Total Machine hours

= $5,282,000 ÷ 38,000 MH

= $139 per MH

Overhead cost per unit:

= Overhead cost per machine hour × Machine hours required for each

= $139 per MH × 1.2

= $166.8

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At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally
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Answer:

Net Income  Bargain Electronics would realize by accepting the special order is  - $ 24,000

Explanation:

Bargain Electronics is operating at full capacity, therefore the fixed costs are relevant at this decision.

<u>Incremental Costs and Revenues - Special Order 3000 units</u>

Sales ( 3000 × $25)                                     75,000

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2 years ago
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Answer:

for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

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Using the below expression to determine the range of interest rates could these firms use trigger strategies to support the collusive level of advertising; we have:

\frac{current \ period's \ profit \ of \ the \ cheating \ firm \ - \  firm's \  profit \  in \ each \ period \ under \ collision  }{ firm's \ profit \ in \  each \ period \ under \ collision \ - \ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } \leq \frac{1}{i}

where;

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Then :

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