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Questions -
Q1. The internal manufacturing cost per unit of a component is as follows -
Direct Material $5.00
Direct Labour $10.00
Fixed costs $15.00
Total costs $30.00
(a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component?
(b) Based on your answer in (a) above name two factors that can influence the company to buy the product.
Q2. (a) Describe two (2) methods for allocating support costs to departments.
(b) Explain why support costs are allocated to departments.
What recommendations can you give for improvement? For a homebuilding company whose land acquisition ideas is failing in the approval stage
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The remainder will not be ready for shipment until January of the following year. Prepare the appropriate journal entry to account for DTC July 31, 2012
Compute net income if Eastern Stores closes the Chicago location. Fixed cost for Chicago include $3 in depreciation for equipment. The equipment has no disposal
HI5020 Corporate Accounting-Holmes Intitute-Australia-How many job advertisements you have collected in total? How many job advertisements you have collected.
What is the direct labor cost variance (Round any intermediate calculations to the nearest? cent, and your final answer to the nearest? dollar.)
The total office and administrative costs for the year are $755,000. What is the predetermined overhead allocation rate that Seal will use for office
What is the total cost to be allocated from Security to the other three departments after all support department cost allocations are made
Swipe 50 sells Plus Swipes at €22 each. Prepare profit statement for Swipe 50 Limited for the month of February and March using: Absorption costing
Describe how this would compare to estimated data applications. Explain your reasoning.
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