Find the maximum amount that flox hill is willing to pay

Assignment Help Managerial Accounting
Reference no: EM132547407

Flox Hill Consulting has its own printing department with the following annual costs:

Supplies      $400,000

Labor        300,000

Overhead    200,000

Total           $900,000

Question 1: The managers would like to outsource the printing function because it is not considered a core competency. The overhead is 60% fixed. Of the fixed overhead, $60,000 is the salary of the printing department director. The remaining overhead is an allocation of overhead costs for the entire consulting firm. The department director would still oversee the printing activities and coordinate all of the printing activities for the organization with the outside printing vendor. The maximum amount that Flox Hill is willing to pay an outside firm to replace the printing services is:

Group of answer choices

Option 1: $820,000

Option 2: $700,000

Option 3: $780,000

Option 4: $900,000

Reference no: EM132547407

Questions Cloud

Groups of three nucleotides called codons : A cell's DNA is always maintained in the nucleus. Provide the rationale for why this is optimal for a cell's long- term survival.
Hpothesis testing : Describe what variable would be tested and what would be your guess of the value of that variable.
What are the possible phenotypes for child : She has a child with a man who has normal vision. What are the possible phenotypes for that child?
Were any recommendations made by the investigative agency : Select any published crash investigation report that details issues specific to airfield, Air Traffic Control, Operations, or Meteorology and discuss.
Find the maximum amount that flox hill is willing to pay : The organization with the outside printing vendor. The maximum amount that Flox Hill is willing to pay an outside firm to replace the printing services is
Describe scenario that result in an overlap of fom and faom : The pilot's Flight Operations Manual (FOM) and the Flight Attendant Operations Manual (FAOM) provide specific policies and procedures for each work group.
Identify two mechanisms of meiosis : Identify two mechanisms of meiosis that contribute to the genetic diversity of the gametes of an organism
Describe the strength of a covalent bond : How would you describe the strength of a covalent bond?
Find the ending balance in accounts payable for march is : Find The ending balance in accounts payable for March is. Sales are 30% cash and 70% on account, and 60% of credit sales are collected in the month

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Evaluate investment opportunities payback period

Explain the methods that companies can use to evaluate investment opportunities Payback Period, the Accounting Rate of Return (ARR)

  What is the present value of the salvage value

Lamar's disc rate 12 %. If the discount rate the present value of an annuity of $1 at 12% for 8 years is 4.968 what is the present value of the salvage value ?

  What is the current growth rate in the economy

What is the growth rate in sales for the past three years and are revenues and expenses growing at the same rate? What was the experience in the past few years - what is the current growth rate in the economy?

  Journalize the entry to record the requisition of materials

Prepare and Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.

  Calculate the budgeted cost of direct labor for the month

Each unit requires 15 minutes of direct labor to complete. The direct labor rate is $50 per hour. Calculate the budgeted cost of direct labor for the month

  How to calculate cost of goods sold and gross margin

For Fabio Manufacturing Inc How to calculate cost of goods sold and gross margin for this statement ? using normal costing method

  Determine the effects of variations in actual sales

The sales volumes forecast by each staff member should be treated as estimates only and your report should examine the effects of variations in actual sales

  Summarize the variance

Summarize the variance that you computed by showing the net overall favorable or unfavorable variance for the month.

  Compute what is the earnings per share

The income statement for Emerald, Inc If Emerald has 100,000 shares of common stock outstanding throughout the year, what is the earnings per share?

  Reflect on whether or not budgets were effectively applied

Budgets play a critical role in management activities such as planning, controlling and motivating employees. Reflect on whether or not the budgets were effectively applied and whether your experience was positive or negative.

  Describe the discretionary fiscal policies

shows that increased government purchases, with taxes held constant, can eliminate a recessionary gap. How could a tax cut achieve the same result - Describe the discretionary fiscal policies to close a recessionary gap and an expansionary gap

  How do determine the depreciation expense

ABC Corporation, How do Determine the depreciation expense 2020 and 2021 using Straight line, production and double-declining balance

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd