Answer:
B. Each product, or job, uses the department to a different extent.
Explanation:
Departmental overhead rates uses a standard charge that is based on produced units attributed to a department.
Costs are applied with high precision.
When this model is used, the standard rate is multiplied by the number of units produced in the department, so there is no over allocation of resources.
For example if we consider the hours a machine operates. With a standard rate of $10 per hour, machine operation of 6 hours will give $10* 6 hours= $60
Answer and Explanation:
<u>I would most likely do this:</u>
Explain the issue to the team and praise them for their work in my absence. I would let them know there would be more time soon. It is very essential to praise and appreciate these efforts by the associates since I have been absent for a while and do not know what efforts they have been putting in.
<u>I would be least likely to:</u>
Talk to the manager to explain this situation or propose that my some of my commitments are eased for me to have more time with my team
Using the formula to calculate the total cost:
Cost = (85% x 3 million) + (60% x 3 million) + (20% x 3 million)
Cost = (0.85 x 3 million) + (0.60 x 3 million) + (0.20 x 3 million)
<span>Cost = (2.55 million) + (1.8 million) + (0.6 million)
Cost = 4.95 millions.</span>
Answer:
b. project A; because its NPV is about $4,900 more than the NPV of project B
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Mutually exclusive projects are those projects where only one project is selected for investment after analysis. NPV is the most preferred method in the evaluation of mutually exclusive projects for capital budgeting. That project is accepted which has higher positive NPV.
Net present value of Project A =$13,157.24
Net present value of Project A =$8,256.98
Difference = $13,157.24 - $8,256.98 = $4,900.26
Net Present value working is made in MS Excel File which is attached with this answer, please find it.