Neat testing and stress testing on materials

Assignment Help Financial Accounting

Reference no: EM13825324

Ayer Test Laboratoriesdoes neat testing (H I) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Ayer aggregates all operating costs of $1,360,000 into a single overhead cost pool. Ayer calculates a rate per test-hour of $16 ($1,360,000 I 85,000 total test-hours). HT uses 55,000 test-hours, and ST uses 30,000 test-hours. Gary Daley, Ayer's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing rates for HT and ST. The market for test services is becoming competitive. Without this information, any miscasting and mispricing of its services could cause Ayer to lose business. Daley divides Ayer's costs into four activity-cost categories

Reference no: EM13825324

Questions Cloud

Current ratio-acid-test ratio-days sales in receivables : The comparative financial statements of New World Piano Company for 20X3, 20X2, and 20X1 included the following selected data: Current ratio. Acid-test Ratio. Days' sales in receivables. Write an explanation to which ratio caules showed improvement ..

X be a variable contained in the interval : let f(x) = ( x^3/5000)(10 - x) and x be a variable contained in the interval [0,10] and f(x) = 0 for any other value of x. a. Prove that f(x) is probability density function. b. Find its cumulative distribution function. c. find p(1

Equipment is expected to generate cash flows : Dobson Contractors is considering buying equipment at a cost of $72,000. The equipment is expected to generate cash flows of $15,400 per year for nine years and can be sold at the end of nine years for $5,700. The discount rate is 11%. Assume the equ..

Article from either the strayer library or a newspaper : Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8 (supply, demand, market structures, elasticity, costs of producti..

Neat testing and stress testing on materials : Ayer Test Laboratoriesdoes neat testing (H I) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Ayer aggregates all operating costs of $1,360,000 into a single overhead cost pool. Ayer calculates ..

Open market at their current market price : An alternative to calling the bonds is to purchase them in the open market at their current market price.

Suppose the demand curve for a monopolist : Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 unit. a. Find the monopolist's profit maximizing output and price. b. Calcu..

Relevant economic article from either the strayer library : Write a three to four (3-4) page paper in which you: 1.Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8. 2.Apply o..

Cash-generating efficiency ratios and free cash flow : Cash-Generating Efficiency Ratios and Free Cash Flow E9A. Business Application. In 2013, year-end assets were $2,100,000. Calculate free cash flow and the cash-generating efficiency ratios of cash flow yield, cash flows to sales, and cash flows to as..

User Account

All Pages