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Question: An engineering rm has historically allocated its overhead costs based on billable hours. The rm's direct labor cost averages $35 per employee hour, and it normally bills these hours to clients at $75 per hour. The rm is considering a change to an allocation vehicle of direct cost. This month's overhead consists of $25,000 for the managing partner and sta , $8000 for training and other personnel costs, $32,000 in proposal preparation costs, $12,000 in subcontract administration, and $6000 for other administrative expenses.
(a) What is the total cost for each project under each allocation method? Use the rm's cost of $35 per employee hour and subcontract cost plus the allocated overhead to answer this.
(b)With the information given in this problem, devise and applay a new system that represents a simplified version of activity based costing.
In a monopolistically competitive marketplace, a firm has market power because it produces a differentiated product. This means that the firm earns positive economic profit in the long run.
read the speech of the fed chairman ben bernanke he delivered on oct 18 2011 at the federal reserve bank of boston
In the past ten years, most forms of drug use have dropped significantly, especially among teens. Despite this, non-violet drug offenders accounted for 21.1 percent of the federal prison population.
Can the U.S. ever come out ahead from this quota? Why or why not? Can the ROW ever come out ahead? Why or why not?
If thevalue of multiplier is 2.49 then find out: MPC MPS What is the relationship between the value of multiplier and MPC?
Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
Prove that a diminishing marginal rate of substitution either implies nor is implied by diminishing marginal utility.
Q: 1 Would you be comfortable if your attorney stored digital copies of your legal documents in the cloud? What about your doctor or psychologist? Why or Why Not?
ECO 561- Suppose that U.S. prices rise 4% over the next year while prices in Mexicorise 6%. According to the purchasing power parity theory of exchange rates, what should happen to the exchange rate between the dollar and the peso?
Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a slice of pizza is $1.50, is the consumer maximizing..
The country of Benin both grows and imports rice. If the government of Benin wants their rice farmers to earn more for their rice than the world price but does not want its consumers to pay more for the rice than the world price so as to keep the ..
Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a lender or a borrower in this market?
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