During a recent accounting period, Falcon Express' shipping department processed 26 orders. Each order typically takes four hours to complete. However, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid $14 per hour, the company's non-value-added cost would be:
A. $56.
B. $1,456.
C. $1,820.
D. $0.
E. $364.
Answer: E
You might also like to view...
Which of the following best describes a car company's value proposition?
A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets.
Why do some companies use computer file notations at the end of a document?
a. To show who typed the document. b. To show the location of the document on the computer network. c. To provide more information about the recipient. d. To provide more information about the author of the document.
A radial tire manufacturer produces products in two departments—Divisions A and B
The company uses separate predetermined overhead allocation rates for each department to allocate its overhead. Divisions A and B have estimated manufacturing overhead costs of $160,000 and $340,000, respectively. Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were 31,000, and direct labor hours were 22,000 for the year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.) A) Division A-$5.16, Division B-$15.45 B) Division A-$15.45, Division B-$5.16 C) Division A-$7.27, Division B-$10.97 D) Division A-$10.97, Division B-$7.27
To minimize Type II error, you can…
