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a. Determine the amount of overhead that would be allocated to the proposed job if 40,000 direct labor-hours are used as the volume-based cost drive. 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?
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How much depreciation will be taken each year if the straight-line method of depreciation is used? Show calculations. "
What is the amount of under- or overapplied overhead at December 31 and compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)
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Calculate which product is over cost and which is under cost by using direct-labor hours as an application base and explain if it is possible that this over costing and under costing is responsible for the profit issues the company is facing.
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Examine the effect of changes in the variable cost / fixed cost structure of the company on cost-volume analysis decisions by managers.
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