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Northwood Industries has asked Primus to conduct a study aimed at improving on-time delivery. Normal practice for Primus is to bill for consultant time at standard rates plus actual travel costs and estimated overhead. However, Northwood has offered a‚at $70,000 for the job. Currently, Primus has excess capacity so it can take on the Northwood job without turning down other business and without hiring additional staff. If normal practices were followed, the bill would be:
Overhead (computer costs, rent, utilities, paper, copying, etc.) is determined at the start of the year by dividing estimated annual overhead costs ($2,400,000) by total estimated no partner hours (80,000 hours).Approximately 20 percent of the total amount is variable costs. All Primus employees receive a xed wage (i.e., there is no compensation for overtime).Annual compensation in the previous year amounted to the following:Per HourPartner.............$ 250Senior consultant.........$ 150Staff consultant.........$ 80
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What will be the effect on company prot related to accepting the Northwood Industries job? What qualitative factors should be considered in the decision whether to accept the job ornot?
Marion Chemicals produces a chemical used as a base in paints. In the manufacturing process, all materials are added at the start of the process, whereas labor and overhead are added evenly throughout production.
What are some costs savings that Dell might realize by reducing its workforce by 10%? (Other than the obvious reduction in salary and wages expenses)
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Mosaic Company applies overhead using machine hours and reports the following information.
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Terra Cotta Designs manufactures custom tiles.
The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capital portion of the debenture.
The following accounts and corresponding balances were drawn from Dexter Company's 2014 and 2013 year-end balance sheets:
Journalize each transaction. Explanations are not required - post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
questionnbsp dr catscan is an ophthalmologist who in addition to prescribing glasses and contact lenses performs
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