Business, 19.07.2019 18:20 rex12388

Problem 2–16 plantwide predetermined overhead rates; pricing lo2–1, lo2–2, lo2–3 landen corporation uses a job-order costing system. at the beginning of the year, the company made the following estimates: during the year, job 550 was started and completed. the following information is available with respect to this job: required: 1. assume that landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. under this approach: a. compute the plantwide predetermined overhead rate. b. compute the total manufacturing cost of job 550. c. if landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for job 550? 2. assume that landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. under this approach: a. compute the plantwide predetermined overhead rate. b. compute the total manufacturing cost of job 550. c. if landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for job 550? 3. assume that landen’s controller is right about machine-hours being a more accurate overhead cost allocation base than direct labor-hours. if the company continues to use direct labor-hours as its only overhead cost allocation base what implications does this have for pricing jobs such as job 550?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

Anewspaper boy is trying to perfect his business in order to maximize the money he can save for a new car. daily paper sales are normally distributed, with a mean of 100 and standard deviation of 10. he sells papers for $0.50 and pays $0.30 for them. unsold papers are trashed with no salvage value. how many papers should he order each day and what % of the time will he experience a stockout? are there any drawbacks to the order size proposed and how could the boy address such issues?

Answers: 3

Answer

Business, 22.06.2019 04:50

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Answers: 2

Answer

Business, 22.06.2019 05:00

Identify an organization with the low-total-cost value proposition and suggest at least two possible measures within each of the four balanced scorecard perspectives.

Answers: 3

Answer

Business, 22.06.2019 05:50

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

Answers: 2

Answer

You know the right answer?

Problem 2–16 plantwide predetermined overhead rates; pricing lo2–1, lo2–2, lo2–3 landen corporation...

Questions