Sea oil fields. (The Norwegian currency is the krone‚ which is denoted by Nkr.) The company uses a sob-order costing system arid applies manufacturing overhead cost to jobs on the basis of direct labor-hours. At the beginning of the year‚ the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost‚ Nkr360‚000; and direct labor-hours‚ 900. The following transactions took place during the year (all purchases and services were acquired
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Is the company correct in its decision of not manufacturing standard model compressors on Sundays? Why? Show your calculations. Decision making should be based on change of RELEVANT items ONLY. The company’s calculation is WRONG‚ as it takes into concern of irrelevant fixed cost. By double-counting depreciation‚ other Mfg. overheads‚ SG&A in Sunday’s cost; it distorts the P&L sheet. To correctly show cost structure for decision making‚ there are two different approaches‚ yet each should reach
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fetus is considered viable between the twenty-third and twenty-fourth week of pregnancy. A person’s age is not calculated from the date of conception‚ and unfortunately fetuses still developing in the womb are not counted as part of the US Census (“what”) According to the landmark case‚ Roe v. Wade‚ when the Fourteenth Amendment refers to a “person” this reference is not encompassing unborn children
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baku Rp. xxx.xxx Biaya tenaga kerja langsung Rp. xxx.xxx Biaya overhead pabrik tetap Rp. xxx.xxx Biaya overhead pabrik variabel Rp. xxx.xxx Harga Pokok Produk Rp. xxx.xxx Dengan menggunakan Metode Full Costing‚ 1. Biaya Overhead pabrik baik yang variabel maupun tetap‚ dibebankan kepada produk atas dasar tarif yang ditentukan di muka pada kapasitas normal atau atas dasar biaya overhead yang sesungguhnya. 2. Selisih BOP akan timbul apabila BOP yang dibebankan
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use of a single burden rate. Burden costs of the testing rooms as well as other costs such as admin were grouped into a single cost pool and then divided by the total labor dollars. This resulted to a single burden rate of 145% of direct labor dollars (cost driver). This method is not appropriate for Seligram because the information on the case present that direct labor hours and machine hours vary by product line and activity. In addition‚ the burden cost of the main and test room also significantly
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Cost Concepts for Managerial Decision Making Prepared for instructional use in Economics For Managers ECG 507 College of Management North Carolina State Universiy © Stephen E. Margolis 2000 Soon we will be using the concepts of cost that are presented in Landsburg’s chapters five and six to analyze market behavior of firms. With a bit of interpretation‚ however‚ these concepts have immediate application to ordinary decisions that
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Cost Theory in Economics A central economic concept is that getting something requires giving up something else. For example‚ earning more money may require working more hours‚ which costs more leisure time. Economists use cost theory to provide a framework for understanding how individuals and firms allocate resources in such a way that keeps costs low and benefits high. 1. Function * Economists view costs as what an individual or firm must give up to get something else. Opening a
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divided by percentage change in income. Conditions: Elasticity coefficient possibilities EI>0 OR Ei<0‚ terminology is to identify normal good or inferior good. Since income elasticity of demand for CD is +5‚which >1 it should be a normal product. While income elasticity of demand for cabinet is +0.5 which <1 ‚but >0‚it should be a normal good as well. During a recession‚ income reduce‚ so the Demand for CD reduce ‚if demand of CD reduce by 50%‚ then the demand for cabinet reduce 5%
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What are the costs and benefits of Globalization? Shanee A. Stevens ECON220-FF4WW Professor John Edwards August 6‚ 2011 What are the costs and benefits of Globalization? Well I know that as we head into 2012 the American people are hoping the economy is turning around. With unemployment rates at their highest and the scarcity of jobs‚ it’s no wonder why the American people do not like their government right now. What was once the best place in the world to come and live the “American Dream”
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CHAPTER 3 ACTIVITY COST BEHAVIOR LEARNING OBJECTIVES AFTER STUDYING THIS CHAPTER‚ YOU SHOULD BE ABLE TO: 1. Define and describe fixed‚ variable‚ and mixed costs. 2. Explain the use of the resources and activities and their relationship to cost behavior. 3. Separate mixed costs into their fixed and variable components using the high-low method‚ the scatterplot method‚ and the method of least squares. 4. Evaluate the reliability of the cost formula. 5. Explain how multiple regression
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