Answer:
a.$15.07 per unit
Explanation:
Using a single plantwide overhead rate based on direct labor hours each product is assigned $15.07 of overhead per unit.
Plantwide overhead rate = Total Budgeted Overhead/ Total Budgeted Direct Labor Hours
Plantwide overhead rate = $320,900/ 21,300= $ 15.065= $ 15.07
Overhead Total Direct Labor Hours DLH per Product A B
Painting Dept. $255,200 10,100 3 11
Finishing Dept. 65,700 11,200 6 7
Totals $320,900 21,300 9 1
Answer:
The correct answer is "The managers are studying the economic forces"
Explanation:
The economic factors are forces that contributes or affect business competitiveness.
Some of the economic factors are: inflation, interest rate, unemployment, fiscal policies, government changes...
Answer:
D. Administrative costs are always relevant.
Explanation:
As Shelby is considering whether to drop a product line from her business. Some administrative costs are always being allocated to the product line but will not change in total if Shelby decides to drop the product line. Administrative costs are always relevant. Administrative costs can be defined as the costs and expenses which are not directly related to any specific department like sales, manufacturing or marketing etc. These are the costs which are related to the company as a whole like, salaries of employees, expenses linked withe the general services like IT and accounting etc. These costs have no linkage with the gross margin. On the other hand, we can define a relevant cost that gives us a differences between two options and alternatives and it can be avoided by choosing one option over another. Therefore, Shelly should take this fact into account because administrative costs are very much relevant and important as well in order to make this particular decision about the product line.
Answer:
b.
Explanation:
In this scenario, the best theme for the analyst to look into would be a comparison of the commercial prospects of new aircraft models. Meaning a deep look into how well the new aircraft models will do in the commercial markets. This is because the stock prices of United Technologies and Rolls Royce ultimately depends on how well the company's products do when they get released. Therefore in order to decide which investment will return the highest ROI, it is best to compare their commercial prospects.
Answer:
A. True
Explanation:
This is true, the estimate we get of the cost of common stock from retained earnings is not fully accurate. So we often use all three methods and then average out to use a reasonable estimate.
