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Question 1: Your firm designs PowerPoint slides for computer training classes. You have just received a request to bid on a contract to produce the slides for an 18-session class. From previous experience, you know that your firm follows an 81 percent learning rate. For this contract, it appears that the effort will be substantial, running 88 hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed $670 per session. The customer will pay you a flat fixed rate per session. If your nominal profit margin is 22 percent, what will be the total bid price, the per session price, and at what session will you break even?
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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