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Northwood Industries has asked Primus to conduct a study aimed at improving on-time delivery. Normal practice for Primus is to bill for consultant time at standard rates plus actual travel costs and estimated overhead. However, Northwood has offered a‚at $70,000 for the job. Currently, Primus has excess capacity so it can take on the Northwood job without turning down other business and without hiring additional staff. If normal practices were followed, the bill would be:
Overhead (computer costs, rent, utilities, paper, copying, etc.) is determined at the start of the year by dividing estimated annual overhead costs ($2,400,000) by total estimated no partner hours (80,000 hours).Approximately 20 percent of the total amount is variable costs. All Primus employees receive a xed wage (i.e., there is no compensation for overtime).Annual compensation in the previous year amounted to the following:Per HourPartner.............$ 250Senior consultant.........$ 150Staff consultant.........$ 80
Required:
What will be the effect on company prot related to accepting the Northwood Industries job? What qualitative factors should be considered in the decision whether to accept the job ornot?
Evaluate Pursco's foreign tax credit limitation under the subsequent independent assumptions.
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Production costs chargeable to the Finishing Department in July in Murdock Company are materials $9,000, labor $23,800, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Compute the unit costs for m..
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
1.the management of melchiori corporation is considering the purchase of a machine that would cost 520000 would last
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.
Corrs Company began operations in 2013 and determined its ending inventory at cost and at lower-of-cost-or-market at December 31, 2013, and December 31, 2014. This information is presented below.
What is full costing? Define and compare job order costing and activity-based costing.
Indicate whether each of the following costs is most likely a fixed cost or a variable cost by writing fixed or variable in the space provided.
List three likely costs in Linda's operation and indicate whether they are fixed or variable.
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