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Rodgers manufactures two products A and B.The firm predicts a sales volume of 10,000 units for product A and ending finished goods inventory of 2000 units.These numbers for product B are 12000 and 3000 respectively. Rodgers currently has 7000 units of A in inventory and 9000 units of B
the following raw material are required to manufacture these products
Raw material cost per pound A B
x $2.00 2 pounds
y $2.50 1 pounds 1 pound
z $1.25 3 pound
Product a requires three hours of cutting time and two hours of finishing time: B requires one hour and three hours receptively. The direct labor rate for cutting is $ 10 per hour and $ 18 per hour for finishing.
Required
1. Prepare a production budget in units
2.Prepare a materials usage budget in pounds and dollars
3.Prepare a direct labor budget in hours and dollars for product A
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Determine the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.
A company purchased a trunk on Jan 1, 2002 for $40,000. The truck has an estimated life of 6 years and an estimated residual value of $4,000.
Discuss how overheads can be over- or under-applied and how the company should deal with the over- or under-application and evaluate whether ABC should be introduced. (Hint: remember to consider both the costs and benefits of any action recommended.)
Compute the ROI for the division without the investment. Compute the margin and turnover ratios without the investment. Show that the product of the margin and turnover ratios equals the ROI computed in Requirement 1.
Nolan Industries manufactures control units that are used in high-speedproduction systems such as pulp and paper manufacturing. The companyhas two major products: the XR244 and the XR276. Punit Shah, the salesmanager at Nolan Industries, is preparing..
The purpose of the study defines what the researcher wants to find out and is found in the introductory section of the research article. Sometimes the purpose contains a research questions.
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