Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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3. What you have done above is a “full-cost” analysis. This is in contrast to a “direct-cost” analysis that ignores overhead costs. Is full cost the right metric for job profitability and customer profitability? What assumptions are we making about the variability of overhead costs when we do a “full-cost” analysis? By allocating the overhead costs to jobs and customers there is an implicit assumption that these are variable with the cost driver. In reality‚ some of the overhead costs are fixed
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DIRECT SPEECH INDIRECT SPEECH PRESENT TENSE PRESENT SIMPLE changes into PAST SIMPLE He said‚ “I write a letter” She said‚ “he goes to school daily” They said‚ “we love our country” He said‚ “he does not like computer” He said that he wrote a letter. He said that she went to school daily. They said that they loved their country He said that he did not like computer. PRESENT CONTINUOUS changes into PAST CONTINUOUS He said‚ “he is listening to the music” She said‚ “I am
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The direct and indirect pathways are circuits heavily involved in the regulation of movement. The direct pathway is thought to decrease inhibitory basal ganglia output (coming from the GPi/SNpr nuclei)‚ whereas the indirect pathway increases inhibitory basal ganglia output. Therefore one would expect the direct pathway to increase motor activity and movement and the indirect pathway to inhibit it. So‚ when the direct pathway is activated‚ cells in the striatum make inhibitory connections with cells
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possibilities between them. If the inputs are perfect substitutes for example‚ the isoquants are straight lines‚ and the campaign manager should use only the less expensive input in this case. If the inputs are not perfect substitutes‚ the isoquants will have a convex shape. The campaign manager should then spend the campaign’s budget on the combination of the two inputs will that maximize the number of votes. 5. For each of the following examples‚ draw a representative isoquant. What can you
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such a difference? After further exam‚ management concluded the large fixed cost absorbed sale figure. First it is important to understand the standard costing system implemented in Rubber group. Standard costing assigns quantity and price standards to each component of variable and fixed costs in calculating the total cost. In the case of NASA‚ the system uses standard purchasing price (input cost) and standard inputs usage in place for variable costs‚ and standard spending price (input cost) and
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COMPARISON OF INDIRECT COST MULTIPLIERS FOR VEHICLE MANUFACTURING Technical Memorandum in support of Electric and Hybrid Electric Vehicle Cost Estimation Studies by Anant Vyas‚ Dan Santini‚ and Roy Cuenca Center for Transportation Research Energy Systems Division Argonne National Laboratory 9700 South Cass Avenue Argonne‚ Illinois 60439 April 2000 Work Sponsored by United States Department of Energy Assistant Secretary for Energy Efficiency and Renewable Energy Office of Transportation
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Product cost is the cost of direct labor‚ direct materials‚ and manufacturing overhead that are consumed to create a product. Product cost can also be considered the cost of the labor required to deliver a service to a customer. Direct Material Cost Definition: Direct material cost is the cost of materials used to manufacture a product or provide a service. Direct Labor Definition: Direct labor is production or services labor that is assigned to a specific product‚ cost center‚ or work order
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products. Chuck questioned if the current cost-management system was providing the management with accurate data about product costs. In a traditional‚ volume-based product-costing system‚ only a single predetermine overhead rate is used. All manufacturing-overhead costs are combined into one cost pool‚ a grouping of individual indirect cost items‚ and they are applied to products on the basis of a single variable that costs over a given time span (cost driver) that is closely related to production
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Task 1 Task 1 A start-up cost is a cost that you start with for example in the flower shop it would be a deposit on the shop and the first month’s rent. Also the first lot of stock‚ advertisement a sign‚ table‚ counter‚ till and a credit card machine. The operating costs are costs that you carry on paying for throughout the time your business is open‚ for example in the flower shop they would be rent‚ wages‚ heating and lighting‚ insurance‚ loan interest‚ drawing (personal salary) ‚ ribbons
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