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The maintenance department's costs are allocated to other departments based on the number of hours of maintenance use by each department. The maintenance department has fixed costs of $500,000 and variable costs of $30 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. More maintenance workers can be added if greater maintenance is demanded by the other departments without affecting the fixed costs of the maintenance department. The maintenance department expects to provide 10,000 hours of maintenance.
Required:
a. What is the application rate for the maintenance department? (Application rate: Figure the total cost for the maintenance department first (Variable plus fixed) and then the rate based on total costs/total maintenance hours)
b. What is the additional cost to the maintenance department of providing another hour of maintenance?
c. What problem exists if the managers of other departments can choose how much maintenance to be performed?
d. What problem exists if the other departments are allowed to go outside the organization to buy maintenance services?
to compare commuting times in various locations independent random samples were obtained from the six cities
December 2011, Old Line is having liquidity problems. Old Line's borrowing base is limited to 60% of its net fixed assets - The CFO has been entertaining the idea of changing from US GAAP to IFRS.
Palermo Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $475,000 for May. Cost of goods sold is expected to be 60% of sales.
Describe at least two career options someone with an accounting education can pursue. Be sure to reference sources such as the Bureau of Labor Statistics and the American Institute of Certified Public Accountants.
martin companys output for the current period results in a 10000 unfavorable direct labor rate variance and a 5000
You can tax shelter only one-half of your retirement savings. You want to invest one-half of your savings in bonds and one-half in stocks. How much of the bonds and how much of the stocks should you allocate to the tax sheltered investment?
a software development process that was characterized as a series of prototyping efforts with an emphasis on risk
the following merchandise transactions occurred during december for two different companies rippen and burnen. both
williams basis in the wam partnership interest was 100000 just before he received a proportionate liquidating
What is the effect of the errors on 2009 net income before taxes?
During the year, National sold 48,000 washing machines and paid warranty costs of $340,000. In its income statement for the year ended December 31, National should report warranty expense of
dorough pointers inc expects to begin operations on january 1 2009 it will operate as a specialty sales company that
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