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Question - Clay Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:
Fixed costs P21,000
Variable costs P33,000
The fixed costs include a normal P3,700 allocation for in-house design costs, although no in-house design will be done. Instead the job will require the use of external designers costing P7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?
a. 36,700
b. 58,050
c. 40,750
d. 54,000
Prepare a report that presents value-added, non-value-added, and actual costs for purchasing. Explain why highlighting the non-value-added costs is important.
Finally, write a paragraph explaining why Sally may not make the investment even though it has a positive NPV.
If you were the Board of Directors, overseeing this firm's CEO, what would you do to prevent this "overproduction" from taking place simply to enhance his or her bonus?
If our earnings go down, our stockholders are hurt because stock prices will fall, and our managers will be hurt because their bonuses are tied to earnings.'' What is wrong with the executive's statement?
Jordan Sports Inc.What is the amount of total manufacturing cost for the period? (Enter your answer in millions rounded to 1 decimal place.)
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Determine the total cost for Job. Job consumed 20% of the total direct direct materials used this year and 30% of the direct labor hours.
Discuss two potential uses of the cost information for decision-making, to the managers in each of the 2 organisations selected in Q2 above.
Determine what was the standard materials quantity per unit? (Round answer to 2 decimal places, e.g. 5.17.).Crede Manufacturing Company uses a standard
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