Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 38,000 units next year and Product L is expected to sell 7,600 units. A unit of either product requires 0.2 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $775,200. Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product
Answers: 3
Business, 22.06.2019 08:00
Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machineryâs invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firmâs net working capital would have to increase by an amount equal to 12% of sales revenues. the firmâs tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define âincremental cash flow.â (1) should you subtract interest expense or dividends when calculating project cash flow?
Answers: 1
Business, 23.06.2019 01:10
1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)
Answers: 1
Business, 23.06.2019 05:30
What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit
Answers: 1
Business, 23.06.2019 06:00
Legal requirements, suppliers and distributors, competitors, and market profiles are contained in the element of your business plan. a. introduction b. operating plant c. industry d. business information
Answers: 1
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is e...
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