Lots of Locks is an upscale hair salon with eight stylists. Its budget information follows: Budgeted direct labor cost $320,000 Budgeted overhead 160,000 Budgeted labor rate per hour $20 Since all of the stylists are paid the same rate, the proprietor allocates overhead to jobs based on direct labor hours. Angela Arnold brought her wedding party to Lots of Locks for styling. It took four
designers two hours each and the supplies totaled $50 . How much overhead was applied to the Arnold job?
a. $50
b. $80
c. $160
d. $500
b
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Indicate whether the statement is true or false
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Indicate whether the statement is true or false
When negotiations start with integrative bargaining but move to distributive bargaining, it is called _______________________________ bargaining.
Fill in the blank(s) with the appropriate word(s).
Fregozo Products, Inc., has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: Capacity in units 58,000Selling price to outside customers$54Variable cost per unit$20Fixed cost per unit (based on capacity)$21?The Transmission Division is currently purchasing 8,000 of these connectors per year from an overseas supplier at a cost of $45 per connector.?Assume that the Connector Division is selling all of the connectors it can produce to outside customers. What should be the minimum acceptable transfer price for the connectors from the standpoint of the Connector Division?
A. $54 per unit B. $20 per unit C. $45 per unit D. $41 per unit