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Question: Common costs. Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tate rents the machine on its own, it will cost $26,000. If Booth rents the machine alone, it will cost $14,000. If they rent the machine together, the cost will decrease to $36,000.
1. Calculate Tate's and Booth's respective share of fees under the stand-alone cost-allocation method.
2. Calculate Tate's and Booth's respective share of fees using the incremental cost-allocation method assuming (a) Tate is the primary party and (b) Booth is the primary party.
3. Calculate Tate's and Booth's respective share of fees using the Shapley value method.
4. Which method would you recommend Tate and Booth use to share the fees?
In both cases of components being used to make products and components being used to make other components, we need to keep track of how many components go into making something else. Draw an E-R diagram for this situation and place minimum and ma..
At the end of the first year of operations, 7,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows.
1. Should deprecation continue to be recorded on a building when ample evidence exists that the current market value is greater than original cost and that the rising trend of market values iscontinuing? Explain
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