The most likely mode of transportation for a 500-mile cargo of delicate, time-sensitive goods weighing 20,000 pounds is a truckload truck.
What is mode of transportation?The term "transport mode" describes the methods available for moving people and/or cargo. Rail, marine (sea), and air travel are all possible forms of transportation for both people and commodities.Road transportation, rail transportation, river transportation, and air transportation are the four main modes of transportation. In most of the world, road transportation is the most frequently used kind of transportation. Water transportation is the main mode of transportation in some low-lying places, such as Venice.The several modes of transportation include pipeline, rail, road, air, and water. The field can be divided into infrastructure, operations, and vehicles. The development of human civilization depends on the facilitation of inter-person commerce, which is made possible by modes of transportation.To learn more about mode of transportation refer to :
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when the fed reacts to a positive aggregate demand shock, which is likely to make the period of disinflation (reducing the inflation rate) shorter?
Credibility on the part of the Fed is likely to make the period of disinflation.
How fed can affect aggregate demand?
Although the Federal Reserve has a minimal direct impact on aggregate demand, by lowering interest rates, the Fed can indirectly boost demand. Asset prices increase when interest rates are reduced. Consumer confidence is boosted by higher asset values for assets like homes and equities, which leads to larger purchases and higher total spending levels. Companies are frequently able to obtain more capital at lower costs as a result of higher stock prices.
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In the united states for the year 2020, the federal government had a ________ so the national debt was ________.
In the united states for the year 2020, the federal government had a budget surplus so the national debt was increasing .
Why is there a budget surplus?
When revenue outpaces spending, there is a budget surplus. When a government has a surplus, it has extra funds that can be invested or applied to debt repayment. The opposite of a surplus is a deficit. The government must borrow money to finance spending when receipts are higher than expenditures.Is a budget surplus beneficial?
Economic conditions determine whether something is good or terrible. When there is inflation, we need surpluses; when there is a recession, we need deficits. There is, regrettably, a little more to it. When a government has a budget deficit, it means that it is spending more money than it is bringing in through taxes.Learn more about budget surplus
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If accounting profits equal $10 million for a firm and the owners could likely earn $7 million in a similar business, the firm’s economic profit is ________.
If accounting profits equal $10 million for firm and the owners could likely earn $7 million in similar business, the firm’s economic profit is increasing.
What is profit?The revenue from an economic entity's outputs less the opportunity costs of its inputs is what is known as a profit. Total revenue less total expenses, which includes both direct and indirect expenses, is what this term refers to. Unlike accounting profit, it solely pertains to the costs that are explicitly stated in a company's financial statements. The total revenue of the company less solely its explicit costs is how an accountant calculates the accounting profit of the company. When examining a corporation, an economist considers all opportunity costs, both explicit and implicit. Economic profit therefore falls short of accounting profit. The overall revenue must exceed the opportunity cost for a business to be profitable from an economics perspective. The two terms "normal profit" and "economic profit" are frequently used interchangeably.
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true or false: positive short-run profit can occur as a result of advertising in a monopolistically competitive market. true false
Positive short-run profit can occur as a result of advertising in a monopolistically competitive market is true
What is short-run profit ?A monopolistically competitive company optimizes profits or minimizes losses in the short run by producing the amount where marginal revenue equals marginal cost. The company will make an economic profit if the average total cost is lower than the market price.Short-term economic gains will draw rival businesses, and prices will inevitably decrease. Similar to how financial setbacks may force businesses to leave the market and drive up costs Until a long-term balance is found, these events will persist.When a company chooses to produce at the level where its marginal revenue matches its marginal cost, it maximizes its short-term earnings. When marginal revenue exceeds marginal cost, the business can increase output and make more money.To learn more about short-run profit refer to:
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true or false: if nick's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in the same change in the production quantity and, thus, total revenue.
The above mentioned statement is False as if nick's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000.
What is Market Price?The price at which a good or service can currently be bought or sold is known as the market price. The forces of supply and demand determine the market price of a good or service; the price at which the quantity supplied and demanded are equal is the market price. Let's use a market pricing example where the ask price is $25.01 or more and the bid price is up to $24.99. A market order to buy placed by an investor will be filled at $25.01. To execute the next trade, bids must increase since this becomes the market price.
Hence, the statement is False.
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sannella corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 220 100 % variable expenses 66 30 % contribution margin $ 154 70 % fixed expenses are $991,000 per month. the company is currently selling 8,000 units per month. the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $11 per unit. in exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. what should be the overall effect on the company's monthly net operating income of this change? multiple choice
There is an increase of $14,600 as a difference between $241,000 and $255,600 which are the Net Operating income.
What is Net Operating income?Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.NOI is a before-tax figure, appearing on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, and amortization. When this metric is used in other industries, it is referred to as “EBIT,” which stands for “earnings before interest and taxes.”Real estate experts use net operating income as a method of valuation to establish the exact value of their properties that generate income. The operating costs of a property must be deducted from the income it generates in order to determine NOI.According to our question-
Our Fixed expenses are
i. $991,000
ii. $917,000
Therefore Net operating income = Contribution margin - Fixed expenses
i. 1,232,000 - 991,000
=$241,000
ii. 1,172,600 - 917,000
=$255,600
Hence, There is an increase of $14,600 as a difference between $241,000 and $255,600 which are the Net Operating income.
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a company has an unfavorable direct materials quantity variance. a possible reason for this variance is that:
A company had an unfavorable direct materials quantity variance, a possible reason for this variance is that as compared to expectations, the production department worked fewer hours.
The management is focused on areas where corrective action can help control operations by using flexible budget performance reports. A favorable variance, where actual costs are lower than standard costs, is the opposite of an unfavorable variance. An unfavorable variance in manufacturing could be caused by rising direct material costs or ineffective operations within the production facility.
An unfavorable material price variance happens when the actual cost of the materials is higher than the average cost. On the other hand, a favorable material price variance occurs when the actual price paid for the materials is lower than the standard price. When actual revenues fall short of what was anticipated, this is referred to as a negative budget variance.
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when working with a developer who's purchasing undeveloped land for a new subdivision, abc realty stipulates in the contract that in order to purchase the undeveloped land, the developer must purchase grading services from bulldozers-r-us. which antitrust violation is this?
Control happens once competitor brokers comply with a typical worth for sales commissions, fees, or management rates. The Sherman just Act forbids any style of control in any business.
Tie-in agreements are called fastening agreements. For instance, a developer United Nations agency is additionally a true estate broker agrees to sell one among the developer's properties to a purchaser providing the customer agrees to list the buyer's house with the broker.
The just prohibition on fixing commission rates means that 2 or additional realty companies might not agree on the commission rate that everyone can charge. As noted earlier, control may be a violation of just laws.
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Question 7 a restaurant wants to gather data about a new dish by giving out free samples and asking for feedback. Who should the restaurant give samples to?.
As the restaurant wants to gather data about a new dish by giving out free samples and asking for feedback, the people that the restaurant should give the samples to are the customers.
What are samples?In research. a sample means the group of people, objects, or items that are taken from a larger population for measurement. The sample are expected to be the representative of the population to ensure that we can generalize the findings from the research sample to the population as a whole.
The samples collected from the customers, will allow the restaurant to gather data about the new dish.
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the process of seeking employees who are currently within the firm to fill open positions is known as .
Internal recruitment is the process of looking for current employees to fill open positions within the company.
What is employees?
Employment is the process by which a business hires a person to carry out a task. In exchange for compensation, the employee consents to complete the tasks assigned by the employer. Employment essentially serves as the foundation for how employees are compensated for the duties they perform within a company.
Employment is a tool that businesses use to run their operations. Employers are required for businesses to run and expand. For instance, if a company wants to enter a new industry, it will have to hire more skilled employees there. As a result, they will be using employment as a tool for business expansion.
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a(n) lists the major project tasks and the name of the person, organization, or subcontractor responsible for the achievement of each task.
Responsibility matrix the major project tasks and the name of the person, organization, or subcontractor responsible for the achievement of each task.
To put it simply, a project is a collection of tasks that must be finished in order to achieve a particular goal. A set of inputs and outputs needed to accomplish a specific objective can also be referred to as a project.
Achieving something with a lot of skill or effort is a great accomplishment. Achieve and achievement frequently imply the accomplishment of a significant or challenging task—a lofty goal or a great so feat. High school graduation is an accomplishment. It is an achievement to learn a new language. One person or one hundred people can manage a project, which can be simple or complex.
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Do you shop online? What kinds of things do you buy online?
In the era of ever-improving technology, almost all consumers shop online. Also, almost every stuff is bought in an online shop. According to the research, clothing is the most popular item to buy online. Books, electronics, cosmetics, and food came after that.
Online shopping is the process through which customers purchase goods and items from sellers over the internet. The fundamental idea is that it is e-commerce that uses the internet in part. People like shop online since it's convenient and easy to bargain, which has helped it gain popularity over time. It helped consumer to buy things without go to the store, it doesn't waste time, it's easy to do, and lots of discounts are given.
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paul's employer has established an informally funded deferred-compensation plan and has purchased a 20-payment whole life policy on paul's life. to assure the annual premium is excludible from paul's taxable income, paul's status should be that of:
Paul's status should be that of a irrevocably designated beneficiary of the policy of deferred-compensation plan
What is a deferred-compensation plan?A situation in which a portion of an employee's salary is paid out at a later time than the money was earned is known as deferred compensation. Pensions, retirement programmes, and employee stock options are a few examples of deferred compensation. An employee can use deferred compensation to save money aside for pay at a later time. You should also be aware that any monies in a non-qualified deferred compensation plan are not shielded from creditors if your company declares bankruptcy. In most cases, taxes on the profit are deferred until after it is distributed. The several types of deferred compensation include stock option programmes, contingency plans, and insurance schemes.
Hence, Paul's status should be that of a irrevocably designated beneficiary of the policy of deferred-compensation plan
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interval: monthly on day 1st of every 1 month(s). start date: 01/01/2026. end: after 12 occurrences. answer: a. an unscheduled journal entry b. recording uncollectable receivables c. logging the usage of a prepaid service d. setup of a recurring transfer
The correct option is to set up a recurring transfer.
Explanation: It is clear from the first column, "interval," and the duration column [start date and End] that this arrangement is for periodic or recurring transfer.
Why are the other alternatives incorrect?
A. It is not an unscheduled entry because the interval time, beginning date, and period are fixed.
B. There are no fixed periodic intervals for uncollectible receivables.
C. The use of a prepaid service that does not necessarily have fixed period intervals.
Recurring transfer-A recurring transfer is a transfer or Basic Payment that is scheduled at regular intervals for a fixed amount. 1. A recurring transfer is one that is made for the same amount on the same date on a weekly, bi-monthly, or monthly basis, for example.
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which of these is a function that a portfolio manager should be able to perform? a) maintain diversification across asset classes b) achieve risk-adjusted returns equal to an appropriate benchmark c) guarantee positive returns d) eliminate systematic risk
The correct option b) achieve risk-adjusted returns equal to an appropriate benchmark, is the function of the portfolio manager.
Define the function of portfolio manager?Investment decisions are made by portfolio managers.
They create and manage portfolios, decide what and when to acquire and sell investments, and develop and implement invest procedures and strategies to suit client goals and restrictions.Private client investment allocations are typically created and managed by portfolio managers. While some portfolio managers specialize in serving the needs of institutions or corporations, others work exclusively individuals and families.One of the most crucial things to take into account when considering at fund investing is a portfolio manager.Thus, a portfolio manager is a single individual or group of persons who are in charge of managing daily portfolio trading, implementing an investment strategy, and investing the assets of a mutual, exchange-traded, or closed-end fund.
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What is the difference between having a co-signer and becoming an authorized user?.
At the same time as an authorized user has the capability to make purchases, a co-signer does not. “A co-signer is a person who pays the stability or debt if the primary cardholder fails to pay it off,” says Ross.
A co-signer is a person who is of the same opinion to be legally responsible to pay a debt if the borrower does not pay again a loan as agreed. A co-signer can be an choice if you are attempting to make a large purchase, including an automobile, and in case you are not able to qualify for the loan in your personal.
A co-signer takes full duty for paying returned a mortgage, at the side of the primary borrower. frequently a co-signer could be a member of the family. The co-signer is obligated to pay any neglected payments or even the whole amount of the loan if the borrower would not pay.
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bill buyer does inspections on property he is buying and finds all to be in order. the inspection objection deadline passes. two days later bill gets cold feet and sends sam seller a notice that bill wants to terminate the contract. what is the result?
Prior to closing, Bill is free to withdraw, but doing so will result in the loss of his earnest money deposit.
When is the advance payment deposit typically applied on a settlements statement at closing?Earnest money is often delivered at the time when the sales contract or purchase agreement is signed, although it can also be included with the offer. After being received, the money is normally kept in an escrow account until closing, when it is used to cover the buyer's down payment and closing expenses.
How can a buyer determine how much cash to bring to the closing?The main technique for determining your cash to close is quite straightforward. The majority of what you need to close on a mortgage is your down payment plus your closing expenses, less any seller credits or earnest money you've already paid.
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the marketing director for a manufacturer of half-size home appliances wants information about the number of single-family households in a certain city. the budget is very small. it makes sense for the marketing director to gather this information by:
The marketing director for a manufacturer of half-size home appliances wants information . It makes sense for her to gather this information by: reviewing census information available on the Internet.
What is meant by marketing director?A Marketing Director is a professional who's in charge of managing all aspects related to the product and perpetration of any given campaign. They are responsible for strategizing and assaying and leading their team while making sure everything runs easily from launch to finish with guests or associates likewise.
Why is marketing so important?The significance of marketing for your business is that it makes the guests apprehensive of your products or services, engages them, and helps them make the buying decision. likewise, a marketing plan, a part of your business plan helps in creating and maintaining demand, applicability, character, competition, etc
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Which of the following are reasons a small business might choose the SIMPLE over a Section 401(k) plan?
A) The employer expects that it could not satisfy the Section 401(k) nondiscrimination test.
B) Because a SIMPLE is less costly to operate, it is generally the better choice if the employer is not concerned about the design constraints of the plan.
C) A Section 401(k) plan would be top heavy (benefits for key employees will exceed 60% of total benefits), and the employer wants to minimize employer contributions.
D) All of these are reasons.
The correct answer is (d), all the mention point are important for considering SIMPLE over section 401 (k).
The correct answers are:
Because a SIMPLE is less costly to operate, it is generally the better choice if the employer is not concerned about the design constraints of the plan.The employer expects that it could not satisfy the Section 401(k) nondiscrimination test.If a Section 401(k) plan would be top heavy (benefits for key employees will exceed 60% of total benefits), and the employer wants to minimize employer contributions.Retirement savings accounts known as section 401(k)s are provided by small company employers having 100 or less employees. Employees can choose to contribute a portion of their pay to the plan, and employers are required to match or non-electively contribute a significant proportion of each employee's pay.
The Internal Revenue Service (IRS) has established contribution limit caps and certain qualification restrictions for employers who want to create these plans.
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If labor is the only variable input a firm owner uses and the wage rate is $200 per week, what is the firm owner’s variable cost per week if she hires 12 workers?.
the firm owner’s variable cost per week is $2400.
variable cost per week = $200 x 12
= $2400
Costs that vary according to how much of a good or service a company produces is known as variable costs. The total marginal costs across all units produced represent variable costs. They may also be regarded as typical expenses. The two elements of the total cost are fixed costs and variable costs.
A corporation must pay close attention to variable costs because they can significantly affect how they spend its money. Variable costs can range from relatively high (in the event of a business experiencing significant change) to fairly minimal (depending on the strategic aims of a business).
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how does the christian worldview describe ethics
Christian worldview describe ethics as a virtue ethic that places a strong emphasis on the development of moral character, starting with adherence to a system of laws and regulations that are seen as divine instructions that reflect actions that are morally obligatory, disallowed, or authorized.
What are the ethical values of Christianity?The imitation of Jesus' love and the double commandment of love (agape, in Greek) are at the heart of Christian ethics, although other virtues, concepts, and standards are equally pertinent Melé (2016). Being compassionate and selfless, especially with our money and time, is the central Christian principle of generosity. Boldness and assurance are qualities that define courage. It is the antithesis of fear. Being filled with love is a vital aspect of who God is, and His children should share this value.
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Profits rise rapidly in the growth stage of product lifecycle, reach their peak, and begin declining as competition intensifies.
a. True
b. False
Profits rise rapidly in the growth stage of product lifecycle, reach their peak, and begin declining as competition intensifies.
b. False
Income, in accounting, is an profits allotted to the owner in a worthwhile marketplace manufacturing system. earnings is a measure of profitability that is the proprietor's primary interest within the profits-formation procedure of marketplace production. There are several earnings measures in commonplace use.
Profit is the cash you've got left after buying commercial enterprise expenses. There are three important sorts of profit: gross profit, working and net earnings. Gross profit is largest. It shows what cash was left after deciding to buy the goods and offerings sold.
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unlike perfectly competitive markets, health insurance and health care markets are characterized by asymmetric information in many forms. to see the consequences, consider the following scenario: the population is evenly divided between 2 types of people: healthy people and unhealthy people. healthy people have expected health care costs of $1000 per year. unhealthy people have expected health care costs of $5000 per year. unhealthy people can become healthy by working out, eating healthier, and taking preventive care. assume that the cost of becoming healthy in terms of time and effort is $2000 per year. these people live in a city with one employer who will hire anyone who is willing to work. this employer provides complete health care to all its employees; all health care costs are covered by the insurance. do the unhealthy employees have an incentive to become healthy? no there is not enough information to tell. yes what is the actuarial fair cost of insurance for all the workers? actuarially fair cost: $ suppose a new employer that pays $1500 more in wages per worker but does not offer any insurance (and there is no market for health insurance) enters the market. which people will go and work for the new employer? none the unhealthy both groups the healthy what would the new actuarially fair cost of insurance be at the original firm? new actuarially fair cost: $
No, unwell workers lack the motivation to get better. This is so because the city's sole employer hires everyone regardless of health. Additionally, the insurance handles and manages their medical expenses.
What would the original company's new actuarially fair insurance cost be?
It is possible to calculate the new actuarially fair cost of insurance by combining the likelihood of healthy and unhealthy employees with the associated medical expenses.
However, assuming that the new employer employed only healthy individuals, it implies that the old employer only employed unhealthy individuals, and the new actuarially fair cost of insurance can be calculated as follows:
∴ Insurance Actuarial Fair Cost = Probability ( Healthy employee × cost of health) + Probability (unhealthy employee × cost of health)
Insurance Actuarial Fair Cost = (0 × $1000) + (1 × $5000)
Insurance Actuarial Fair Cost = $5000
Therefore, for the original company, the new actuarially reasonable cost of insurance would be $5000.
What is the actuarial fair insurance cost for each employee?
The entire amount of required payouts for both the healthy and unwell employees are referred to as the "actuarial fair cost of insurance for all the workers."
Insurance Actuarial Fair Cost = Probability ( Healthy employee × cost of health) + Probability (unhealthy employee × cost of health)
Insurance Actuarial Fair Cost = [tex](\frac{1}{2} + 1000) + (\frac{1}{2} + 5000)[/tex]
Insurance Actuarial Fair Cost = $500 + $2500
Insurance Actuarial Fair Cost = $3000
Consequently, $3000 would be the actuarial fair cost of insurance for each employee.
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consumers union, in an attempt to get information about u.s. adults, asked all subscribers whether they had used alternative medical treatments and, if so, whether they had benefited from them. for almost all of the treatments, approximately 20% of those responding reported cures or substantial improvement in their condition. they received replies from 12% of their subscribers. identify the sampling method, including whether or not randomization was used. choose all that apply. responses bias bias systematic systematic cluster cluster undercoverage undercoverage census census variability variability convenience convenience randomization was used randomization was used multistage multistage randomization was not used randomization was not used stratified stratified
Population: All U.S. adults
Population parameter: proportion who have used and benefited from alternative medicine
Sampling Frame: all Consumers Union subscribers
Sample: those who responded
What is sampling frame ?A sampling frame is a list from which sampling units are extracted.. A "list" may be an actual list of entities, such as a phone book, from which phone numbers are extracted, or some other description of a population such as: B. The map from which the area was retrieved. Non-probabilistic sampling involves non-random selection based on convenience or other criteria for
easy data collection....probabilistic sampling A simple random sample. ...Systematic sampling. ...Stratified sample. ... Village extraction.learn more about sampling frame here :
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when sam increases smoothie production from 4 gallons to 5 gallons, his total cost of production increases from $32.50 to $36.85. calculate sam's marginal cost of producing smoothies.
Sam's marginal cost of producing smoothies is $4.35.
What is marginal cost?
The difference in total production costs caused by creating or producing one extra unit is known as the marginal cost in economics. To calculate marginal cost, divide this same variation in production costs even by variation in quantity. Finding the point at which an organisation can achieve scale economies to improve production as well as overall operations is the goal of marginal cost analysis. The producer may make money if the cost of producing one extra unit is less than the price per unit. The total costs involved in producing an additional good are what is referred to as the marginal cost. Therefore, it can be evaluated by changes in the costs associated with each additional unit.
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suppose the asian financial crisis decreased u.s. exports. in the aggregate demand/aggregate supply model, this would be represented as
A rise in the value of the dollar has the immediate consequence of reducing net exports to other nations since importers will find that purchasing goods from the United States is more expensive than purchasing them from certain other nations.
The overall demand for American goods likewise declines as a result of the loss in exports.As a result, there will be an oversupply of US goods in producer warehouses, which will lower GDP and national productivity . difference between a country's total exports and total imports is known as net export.To determine the level of national demand for items generated by the economy, the net export figure is used.Foreign investors' declining faith in US financial institutions will result in less investments being made in the nation, which will cause commodity prices to decline.A lower price level also encourages exports and discourages imports, all other things being equal.
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the entry a company uses to journalize pension rights that have not been funded for its salaried employees at the end of the year is
The entry a company uses to journalize pension rights for its salaried employees at the end of the year is debit pension expenses; credit cash.
A pension is a fund into that a total of services is added all the while a member's hiring age and from what or in which place fees are tense to support the character's retreat from introducing the form of routine fees. A pension plan is a bonus plan settled or claimed by an employer or by an agent arranging (in the way that a merger), or two together, that specifies social welfare program or defers revenue as far as the end of enclosed contracting or further.
A Cash credit (CC) is a temporary beginning of payment for an association. In other words, a cash credit is a temporary loan lengthened to a guest by a bank. It authorizes a guest to retract services from a checking account outside consistency a credit balance. A cash credit reduces the funding cost of the purchaser, as the interest loaded is only on the employed amount or minimum assurance charge.
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The first sushi restaurant opens in town. Initially people are very cautious about eating tiny portions of raw fish, as this is a town where large portions of grilled meat have always been popular. Soon, however, an influential health report warns consumers against grilled meat and suggests that they increase their consumption of fish, especially raw fish. The sushi restaurant becomes very popular and its profit increases.
a. What will happen to the short-run profit of the sushi restaurant? What will happen to the number of sushi restaurants in town in the long run? Will the first sushi restaurant be able to sustain its short-run profit over the long run? Explain your answers. b. Local steakhouses suffer from the popularity of sushi and start incurring losses. What will happen to the number of steakhouses in town in the long run? Explain your answer. c. Does the market for sushi restaurants fit the characteristics of perfect competition? Explain.
The number of sushi restaurants will increase in the town causing the equilibrium price to increase.
a)Warning against grilled meat will shift the consumers of meat to eat fish which will result in an increase in the demand for sushi and fish. This increase in demand will increase short-run profit and the price of fish.
In the long run, high prices of sushi restaurants can lead consumers to shift back to meat because some people will ignore the warning about meat. This will increase the price and demand for meat. As fish is now a substitute high prices of meat will shift the consumers back to sushi restaurants so their profits and demand will increase in the long run as well.
And the number of sushi restaurants will increase in the long run. This is called general equilibrium analysis.
b)The local steakhouse will be affected by the popularity of sushi restaurants and the number of steakhouses will decrease in the town due to less demand or their sales profit will decrease due to which they might shut down.
c)Sushi markets is an example of perfect competition because there are many buyer and sellers of single types of product.
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oxford corporation has four categories of overhead. the expected overhead costs for each category for next year are as follows: maintenance $210,000 materials handling 90,000 setups 75,000 inspection 150,000 the company has been asked to submit a bid for a proposed job. the plant manager believes that obtaining this job would result in new business in future years. bids are usually based upon full manufacturing cost plus 30 percent. estimates for the proposed job are as follows: direct materials $5,000 direct labor (375 hours) $7,500 number of material moves 4 number of inspections 3 number of setups 2 number of machine-hours 150 expected activity for the four activity-based cost drivers that would be used is: machine-hours 10,000 material moves 2,000 setups 100 quality inspections 4,000 required: a. determine the amount of overhead that would be allocated to the proposed job if 20,000 direct labor-hours are used as the volume-based cost driver. determine the total costs of the proposed job. determine the company's bid, if the bid is based upon full manufacturing cost plus 30 percent. (round amounts to 2 decimal places.) b. determine the amount of overhead that would be applied to the proposed project if activity-based costing is used. determine the total costs of the proposed job if activity-based costing is used. determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent. (round amounts to 2 decimal places.) c. which product costing method produces the more competitive bid?
If 20,000 direct labor hours are utilized as the volume-based cost driver, the amount of overhead that would be assigned to the proposed job is $43,493.75
What does the overhead rate mean?The overhead rate is the cost involved in producing a good or service. The cost of the corporate headquarters is an example of an overhead expense that isn't directly tied to output.
An overhead rate is applied to the direct production-related costs in order to disperse or allocate the overhead costs based on specific indicators.
Calculation:
A) manufacturing overhead rate that is fixed = total estimated overhead costs for the period/ total amount of allocation base
manufacturing overhead rate that is fixed = 2,325,000 / 20,000
manufacturing overhead rate that is fixed = $116.25 per direct labor hour
Now,
Total cost= 5,000 + 7,500 + 43,493.75
Total cost= $55,993.75
Therefore, the suggested job will cost $55,993.75 in total.
Also,
Selling price= 55,993.75 * 1.3
Selling price= $72,791.88
Therefore, the company's bid, which is based on full manufacturing cost plus 30% and activity-based costing, is $72,791.88.
B) We must first determine the activities rate:
Maintenance is equal to 210,000/10000, or $21 per machine hour.
Material handling: 90 000 / 2,000 = $45 per each transport of material
Setups= 75,000 / 100= $750 per setup
Inspection= 150,000 / 4,000= $37.5 per inspection
We can now assign overhead:
Maintenance= 21*150= 3,150
Materials handling= 45*4= 180
Setups= 750*2= 1,500
Inspection= 37.5*3= 112.5
Total allocated costs= $4,942.5
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how do smart factories differ from other manufacturing technologies? how might the transformation to a smart factory change how a manufacturing organization hires and trains employees?
Many businesses are quickly adopting lean manufacturing and smart factories. The organisational design is where this differs fundamentally from conventional manufacturing technologies.
What is manufacturing technologies?
The industrial world of today features a number of manufacturing technology advancements that were science fiction even 15 or 20 years ago. The most potent technology ever seen in the manufacturing industry is being created by improvements in communication speeds, data analysis, and automation.
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