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Question 1: During 1997, Harar Laboratory supplied hospitals with a comprehensive diagnostic kit for Br 120, At a volume of 80,000 kits, Harar had fixed costs of Br 1,000,000 and as profit before income taxes of Br 200,000. Due to an adverse legal decision, Harar's 1998 liability insurance increased by Br 1,200,000 over 1997, Assuming the volume and other costs are unchanged, what should the 1998 price of the diagnostic kit be if Harar is to make the same Br 200,000 profit before income taxes?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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