High Plains Inc. manufacturers furniture in North Dakota. High Plains receives its wood from a lumber yard in Calgary. The lead

The machine incurred a partial depreciation expense of $1,400 during its first year. Harding Co. follows the straight-line method for depreciation, calculating the annual depreciation using the formula: Annual Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life = ($14,000 - $2,000)/5 = $2,400. The monthly depreciation amounts to $2,400/12 = $200. In its first year, from June 1st to December 31st, the machine was utilized for 7 months. Therefore, the total depreciation expense is calculated as: Depreciation expense = Monthly depreciation x 7 = $200 x 7 = $1,400.

Answer:

By making decisions based on marginal analysis, I can guarantee that every set of inserts produced yields a profit. If profit margins for any insert pair fall below zero, I will need to reduce production. Grasping these margins will also keep me ahead in a market with potential competitors. In case more producers join the market, I can readily adjust prices downwards or provide discounts while still ensuring profit maximization.

Explanation:

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. To determine the predetermined overhead rate appropriate for each department.

Given

Cutting Department

The Cutting Department calculates its rate based on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

For the Finishing Department, the rate is calculated based on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department's rate is based on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ This was calculated

The Finishing Department's calculations rely on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If the business utilizes a company-wide overhead rate linked to direct labor cost and if jobs have increased machine hours paired with lower labor costs, they would incur less overhead expenses.

Thus, the internal rate of return stands below the anticipated rate, and therefore the project should be rejected. To elaborate, the cash flow for the project over years 0 to 3 consists of amounts: -$161,900, $60,800, $62,300, and $75,000. The required rate of return is 13%. Let's denote the internal rate of return as y%. At this rate, the present value of inflows equals the present value of outflows, leading to the equation for internal rate of return: 161900 = 60800/1.0y + 62300/1.0y^2 + 75000/1.0y^3. This gives an internal rate of return of y = 10.41%.

Answer:

The right choice is B: Gap 2.

Explanation:

The gaps model of service quality, known as the 5 gaps model, is essential for organizations to guarantee customer satisfaction. Gap 2 specifically addresses the disparity between management perceptions and the actual customer experience. In this gap, managers make it a priority to define and deliver the expected quality of service. In this instance, FedEx is addressing customer-defined performance standards, indicating it plays a significant role in closing Gap 2 in the service quality gaps model.