Category: Uncategorized

Assume that ABC allocates manufacturing overhead using a plantwide rate with machine hours as the allocation base.  What is the plantwide overhead rate?

Assume that ABC allocates manufacturing overhead using a plantwide rate with direct labor hours as the allocation base.  What is the plantwide overhead rate?

Using the departmental overhead rates calculated in question # 29, how much overhead would be allocated to the 7 sting model? 

Residual income can be used most effectively in comparing the performance of divisions of very different size.

Assume that ABC allocates manufacturing overhead using a plantwide rate with direct labor hours as the allocation base.  What is the plantwide overhead rate?

Sahara Corporation manufactures water fountains.  Sahara has the capacity to manufacture and sell 80,000 water fountains each year but is currently only manufacturing and selling 60,000. The following per unit numbers relate to annual operations at 60,000 units:   Per Unit Selling price $ 125 Manufacturing costs:     Variable $ 25 Fixed $ 40 Selling and administrative costs:     Variable $ 10 Fixed $ 15 UNF would like to purchase 3,000 water fountains from Sahara but only if they can get them for $75 each. Variable selling and administrative costs on this special order will drop down to $2 per unit. This special order will not affect the 60,000 regular sales and it will not affect the total fixed costs. The annual financial advantage (disadvantage) for the company as a result of accepting this special order from UNF should be: 

What is the Contribution Margin Ratio for March  2020?

Assume that ABC allocates manufacturing overhead using a plantwide rate with machine hours as the allocation base.  What is the plantwide overhead rate?

ABC Co. makes many types of widgets.  ABC has 700 units of widget Type V7 that are now obsolete due to technological advancements.  Which of the following would be relevant in ABC’s decision to sell or throw out the obsolete inventory?   Direct materialcost assignedto the inventory Fixed overheadcost assignedto the inventory A) Yes Yes B) Yes No C) No Yes D) No No  

Residual income can be used most effectively in comparing the performance of divisions of very different size.