Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Diamonds, Etc. manufactures jewelry settings and sells them to retail stores. In the past, most settings were made by hand, and the overhead allocation rate in the prior year was $12 per labor hour ($2,400,000 overhead ÷ 200,000 labor hours). In the current year, overhead increased by $800,000 due to acquisition of equipment. Labor, however, decreased by 40,000 hours because the equipment allows rapid creation of the settings. One of the company's many customers is a local jewelry store, Jasmine's Fine Jewelry. This store is relatively small, and the time to make an order of jewelry pieces is typically less than 10 labor hours. On such jobs (less than 10 labor hours), the new equipment is not used, and thus the jobs are relatively labor intensive.
REQUIRED
a. Assume that in the current year, the company continues to allocate overhead based on labor hours. What would be the overhead cost of a 10-labor-hour job requested by Jasmine's Fine Jewelry? How does this compare to the overhead cost charged to such a job in the prior year?

b. Assume that the price charged for small jobs does not change in the current year. Are small jobs less profitable than they were in the past?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928588

Have any Question? 


Related Questions in Business Management

Analyze the role of credit in our economy and how it

Analyze the role of credit in our economy and how it influences the business cycle. In your answer, explain how the role of credit leads to the stability of our economy.

What are some of the barriers to the development of formal

What are some of the barriers to the development of formal water markets that could potentially lead to more efficient allocations of water?

What is the answer is it c or dthe main business of the

What is the answer? Is it C or D? The main business of the Coca-Cola Company is manufacturing, marketing and distributing concentrate for soda drinks to bottlers in over 200 countries of the world. The corporate scope of ...

Suppose the government of congo spends money on only

Suppose the government of Congo spends money on only education, and gets revenue through property taxes. In 2015, the government spent $120 on education and collected $100 in property taxes. The annual interest rate is 1 ...

Instead of cutting jobs from december 2009 to december 2010

Instead of cutting jobs from December 2009 to December 2010, suppose that the state and local governments had raised taxes. All other things being equal, higher taxes would (Decrease, Increase, or have no effect) the num ...

In todays business environment managers are expected to

In today's business environment, managers are expected to utilize intuitive and critical thinking skills on a daily basis in decision making. i. Why is past experience so important to managers today, and how applicable i ...

Strict vs loose discuss with your student colleagues

"Strict vs. Loose" discuss with your student colleagues whetheror not you are Strict or Loose Constructionist? Also, many scholarshave described Thomas Jefferson as a Strict Constructionist, basedon the excerpts from the ...

Assume the relationship between the growth of a fish

Assume the relationship between the growth of a fish population and the population size can be expressed as g = 4P-0.1P^2, where g is the growth in tons of fish and P is the size of the fish population (in thousands of t ...

Compares current and past approaches for promoting

Compares current and past approaches for promoting innovation within corporate culture with support from specific real-world examples.

A publishing company is trying to decide if it pays to

A publishing company is trying to decide if it pays to develop a new textbook. The new textbook will be completed and ready for sale in 3 years. Cash flows from sales of the textbook will be $18000 per year for 10 years, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate