On Saturday, December 31, the company's owner provided ten hours of service to a customer. The company bills $100 per hour for s

Answer:

(a) Predetermined overhead rate for the entire plant:

= 30

Applied manufacturing overhead for Job A:

= Total hours of direct labor × Predetermined overhead rate for the plant

= 15 × 30

= 450

Applied manufacturing overhead for Job A:

= Total direct labor hours × Plantwide predetermined overhead rate

= 9 × 30

= 270

(b) Department-specific predetermined overhead rates:

= 30

= 1.2

Applied manufacturing overhead for Job A:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (11 × 30) +  (10 × 1.2)

= 330 + 12

= 342

Applied manufacturing overhead for Job B:

= (Machining machine hours × 30) +  (Assembly direct labor hours × 1.2)

= (12 × 30) +  (5 × 1.2)

= 360 + 6

= 366

Answer:

The data indicates: One flight has a total of 100 seats.

Full fare passengers, ticket cost=$150, average=56 passengers, SD=23.

Discount fare passengers, ticket cost=$100, average=88 passengers, SD=44.

(a) The question suggests optimizing total revenue per flight (one way) by potentially only taking full fare passengers, which would yield $15,000. However, historical probabilities show an average of 56 with a standard deviation of 23, thus in an ideal scenario, total full fare passengers could reach 79. That would allocate 21 tickets for discount passengers, leading to total revenues of $13,950.

(b) Now with the new constrained policy, specific seat allocations for both categories are set—44 for discount (resulting in total revenues of 44*100) and 56 for full fare (resulting in total revenues of 56*150)—both within the previously mentioned probabilities. The total revenue in this case will be 44*100+56*150 = $12,800.

(c) The difference in excess revenues between both scenarios for optimal total revenues and limited seats policy is calculated as answer (a) - answer (b) = $13,950 - $12,800 = $1,150.

(d) Realistically, this question cannot be properly answered without a clear confidence interval. Another simplifying assumption is to take the mean number of passengers as expected bookings (which can later be adjusted with provided confidence intervals). The total revenues in this scenario will come from 44*100 from discount and 56*150 from full fare passengers. This remains similar to answer (c) due to the assumption of no constraints, so optimal bookings might total 54 full fare tickets and 44 discount tickets. Worst case scenarios could involve subtracting SD from each passenger type’s mean, or for better scenarios, add SD of full fare passengers to the mean and allocate remaining seats for discount fare in order to maximize revenue.

Answer:

$18,000

Explanation:

The manufacturing overhead calculation is detailed below:

First, we need to find the overhead rate, which is calculated as follows:

= $30,000 ÷ 2,000

= $15

Now, the amount of manufacturing overhead applied to Job A-101 is calculated by:

= $1,200 × $15

= $18,000

Thus, the applied manufacturing overhead totals $18,000

Answer:

MARIN PRODUCTS

Sales after further processing

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Revenue post-processing $1,040,000 $1,200,000 $2,700,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Individual processing cost (110,000) (44,000) (66,000)

Net profit 172,105 10,158 928,737

sale at split-off point

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Sales revenue $400,000 $840,000 $1,980,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Net profit (357,895) (296,842) 274,737

Conclusion: All products should undergo further processing to enhance the company's profit margins

Cost per unit = $3,600,000/76,000 = $47.37

DBB-1 = $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation: