Case 4-27 critical thinking interpretation of manufacturing overhead rates, wally, our...

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The rate did not cause any comment because it was within a few case 4-27 critical thinking interpretation of manufacturing overhead rates of the overhead rate that had been used during AS a result, the real labor savings would be only about 2, hours——one worker.

The company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor-hours. Shortly after this meeting, Mr. Several options are available, including leasing and outright purchase. Yeah, but what about cost?

The controller assumed that the new machine would result in a reduction of 6, direct labor-hours for the year from the levels that had initially been planned.

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It can process about twice as many parts per hour as your present milling machines. You just punch in the code of the standard operation load the machine's hopper with raw material, and the machine does the rest.

Solved: Sharpton Fabricators Corporation Manufactures A Va | westlinnartsfestival.com Recompute the predetermined overhead rate assuming that the new machine will be installed.

That center is idle soal essay bhs inggris sma of the time anyway. The third advantage of the automated milling machine is lower cost.

Purchase Solution

When the revised predetermined overhead rate for the year was circulated among the company's top managers, there was considerable dismay. Don't forget your overhead Reynolds: The president of Sharpton Fabricators, Kevin Reynolds, agreed to meet with the regional sales representative from Central Robotics to discuss the proposal.

Round the answer to 2 decimal places. Explain why the new predetermined overhead rate is higher or lower than the rate that was originally estimated for the year Larry Winter, our production manager, asked me to meet with you because he is interested in installing an automated milling machine. This is a great machine with direct bottom-line benefits.

Browse hundreds of Accounting tutors. What is your direct labor cost per hour? Second, it is much more flexible.

First, it is much faster than the manual metl'iods you are using. I was getting there. You're going to have to show me this isn't just another expensive toy for Wally's people to play with, Chang: What about cost? The following discussion took place: That's right. Need an extra hand?

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The company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours On December 10,the company's controller made a preliminary estimate of the predetermined overhead rate for There are some-up front programming costs, but once those have been incurred, almost no setup is required on the machines for standard operations.

There are some up-front programming costs, but once those have been incurred, almost no setup is required to run a standard operation. When the revised predetermined overhead rate for the year was circulated among the company's top managers, there was considerable dismay.

The business plan to open a nursery milling machine has three major advantages. On December 10,the company's controller made a preliminary estimate of the predetermined overhead rate for This new predetermined overhead rate was communicated to top managers in a meeting on December It can process about twice as many parts per hour as your present milling machines.

The third advantage of the automated milling machine is lower cost. Both of these costs would be included in factory overhead.

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The following discussion took place Reynolds: Reynolds met with Jay Warner, Central Robotics' sales representative. Larry Winters and I looked over your present operations, and we estimated that the automated equipment would eliminate the need for about 6, direct labor-hours a year.

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He had been hoping to accomplish the reduction by not replacing workers who retire or quit, but they would not be possible. Explain why the new predetermined overhead rate is higher or lower than the rate that was originally estimated for the'year That's right.

What is your direct labor cost per hour? Larry Winters and Ilooked over your present operations, and we estimated that the automated equipment would eliminate the need for about 7.

When can you install the equipment? The rate did not cause ay comment because it was within a few pennies of the overhead rate that had been used during Arcany informed the company's controller of the decision to lease the new equipment, which would be installed over the Christmas vacation period.

Expert Answer

First, it is much faster than the manual methods you are using. Having twice the capacity in the milling machine area won't do us much good. You're going to have to show me this isn't just another expensive toy for Larry's people to cara cepat buat literature review with. Frankly, I am skeptical.

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