Fredin Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$80,400 Budgeted fixed manufacturing overhead 185,700 Total budgeted manufacturing overhead $ 266,100 Budgeted production (a) 15,000unitsStandard hours per unit (b) 2.00labor-hoursBudgeted hours (a) × (b) 30,000labor-hoursThe predetermined overhead rate is closest to:
A. $22.76 per labor-hour
B. $8.87 per labor-hour
C. $11.38 per labor-hour
D. $17.74 per labor-hour
Answer: B
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Explain the approaches that can be used to forecast demand
What will be an ideal response?
The starting salaries of individuals with an MBA degree are normally distributed with a mean of $40,000 and a standard deviation of $5,000. What percentage of MBA's will have starting salaries of $34,000 to $46,000?
A. 38.49% B. 38.59% C. 50% D. 76.98%
A measure of systematic risk is
A) standard deviation. B) correlation coefficient. C) beta. D) variance.
Janeiro Skate, Inc. currently manufactures the wheels that it uses for its in-line skates. The annual costs to manufacture the 150,000 wheels needed each year are as follows:??Total Cost?Direct materials$165,000?Direct labor45,000?Variable manufacturing overhead60,000?Fixed manufacturing overhead300,000?Total$570,000Kasba Rubber Company has offered to provide Janeiro with all of its annual wheel needs for $3.50 per wheel. If Janeiro accepts this offer, 75% of the fixed manufacturing overhead above could be totally eliminated. Also, Janeiro would be able to rent out the freed up space and could generate $72,000 of income annually. Assume that direct labor is a variable cost.Required:Based on this information, would Janeiro be financially better off to continue making the
wheels or to buy them from Kasba? What will be an ideal response?