The answer is true but other factor may come into play such as the cost and reliability of the supplier so these should be taken into account when choosing a supplier
Answer:
The Darwin Company
Calculation of Manufacturing Overhead costs:
= $17,200
Explanation:
a) Data and Calculations:
Depreciation on factory equipment $4,700
Indirect labor 5,900
Factory rent 4,200
Factory utilities 1,200
Indirect materials used 1,200
Total Manufacturing overhead costs = $17,200
b) Darwin's manufacturing overhead costs will include only the above listed costs. Sales commissions, direct materials, direct labor, and office salaries expense do not form part of the manufacturing overhead costs. The manufacturing overhead costs are neither direct materials or labor costs or selling and administration costs.
Canada will be least comfortable with this type of a structure.
Explanation:
An organizational system which is based on a hierarchical, structured network, is also called a bureaucratic structure. The layout of the system is best suited for companies operating in a safe and unique climate. Generally, a mechanistic system is easy to manage. When a business operates in a stable environment, it never needs to be changed.
Authority represents a well-defined hierarchy of mechanistic organisations, with top managers taking the majority of decisions. Since the world is relatively stable, there is no need for complicated decision-making procedures spanning many parties. Subordinates should obey and not challenge their reasoning in the course of management. Unlike actions, contact often flows via or from the top down hierarchical paths.
Answer:
The pro side of not listing the 10% would be that until the price reduction becomes official it could be considered just a rumor. The unethical argument for keeping the knowledge that will drop 10% is that the production manager kept from his boss the knowledge that a possible impending reduction could save the company money.
<u>Solution and Explanation:</u>
Answer 1 <u>Calculation of activity rate is as follows:
</u>
<u>Stamping</u> = Budgeted costs divided by Machine tour
= $200000 / 10000 = $20 machine hour
<u>Assembly</u> = Budgeted costs divided by Labor hour
= $400000 divided by 20000 = $20 labor hour
<u>Setup</u> = Budgeted costs divided by setup
= 30000 / 15 = 2000 setup
Answer 2 <u>Overhead cost per unit = Total overhead cost divided by total units produced
.</u>
Saws = $452 per unit
Drills = $673 per unit
