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GHI Inc. has commenced work on three jobs during its first year of operations. Costs incurred for each of these jobs are as follows:
Job 1 Job 2 Job 3
Direct Materials $100,000 $150,000 $200,000
Direct Labour $200,000 $300,000 $220,000
Question 1: Overhead is applied to jobs at a rate of $0.50 per direct labour dollar spent. During the year, Job 1 was completed, while Job 2 was completed and sold. Job 3 is still process at the end of the year. Actual manufacturing overhead costs incurred amounted to $300,000. GHI employees worked a total of 60,000 hours during the year. GHI's direct labour rate per hour was
Management reports have been a prominent topic the past few years. The term "Management Reports" can be understood in a variety of different contexts and applications. A management report is also included in the annual report to shareholders.
Now assume that 20% of the fixed overhead can be avoided if the ingredient is purchased externally. Which alternative is more cost effective and by how much?
How many of these ratios are used to evaluate long-term financial stability? Capitalisation ratio, Current ratio, Acid test ratio, Equity ratio
Would it be a good decision to drop the sour cream product line? Keith Smoothies has 4 product lines: sour cream, ice cream, yogurt
GHI Company makes light-weight canoes for campers. The president, George Ingalls, enlists your help in predicting the effects of some changes he is contemplating. He gives you the following information:
What is the lowest acceptable transfer price from the standpoint of the selling division? Division C makes a part that it sells to customers outside
The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for Sporting Goods Division at break-even point?
Calculate the standard quantity of American cherry in Mathis's music stand. Mathis Music Stands manufactures decorative wooden music stands
Expand on Johns thought. How are the large losses related to fixed costs? Identify a way that John can turn potential fixed costs into variable costs.
Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage for Funtime Park.
Why does the balance scorecard include financial performance measures as well as measures of how well internal business processes are doing?
Compute the break-even point in total sales dollars and in units for 2014 and paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns.
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