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Problem 1: Manufacturing overhead for a company was $643,650; direct materials were $324,850; and direct labor was $124,900. What is the total amount of conversion costs?
1- $1,093,400
2- $449,750
3- $968,500
4- $768,550
Problem 2: Cambridge Manufacturing is deciding whether to purchase a new piece of equipment that can produce units more quickly than its current equipment. Which of the following costs would be relevant to its decision?
1- None of the items in this list of answers
2- The cost of raw materials
3- The original purchase price of the current machinery
4- The accumulative repairs costs of the current machinery over the years
During the quarter they will pay $90,000 in salaries, $40,000 in advertising, and $38,000 in equipment rental fees. What are total fixed costs
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What are the four steps in the decision-making process? Please explain
An outside supplier has offered to produce the corn chips for $20 per batch. If all fixed costs can be eliminated, how much will Hungry Bites save if it accepts the offer?
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