Question
a) b) The following information is from S Engineering Companys 2022 Budget: S Engineering Hours 55,000 hrs Engineering Salaries $800,000 Support Team Salaries $300,000 Office
a)
b)
The following information is from S Engineering Companys 2022 Budget:
S Engineering Hours 55,000 hrs
Engineering Salaries $800,000
Support Team Salaries $300,000
Office Rent $60,000
General Administration $50,000
Ss goal for the year is to make a Profit of 25% for the year. S allocates all its costs based onS Engineering Hours.
Assume all costs are fixed.
S is offered a job that it expects will take them 500 engineering hours to complete. The customer is only willing to pay $13,200 for the job. Required: a. Basing your answer solely on Ss profit target, should it take the job?
PLEASE Explain your answers with proper calculations for both cost allocation and profitability. b. Would your answer to part a change if S management expects that it will underachieve to it expected S Engineering Hours recording only 50,000 rather than the budgeted 55,000 hours (idle capacity)? Explain your answer please
PLEASE ANSWER ASAP AND I WILL GIVE THUMBS UP
PW Corp has a two-step manufacturing process - Fabrication and Assembly. For the Fabrication Process you are given the following information: Required: a. Determine the equivalent units for the period for Fabrication. b. Compute the cost per equivalent unit for the period for Fabrication. c. Determine the closing valuation for Fabrication WIP and the total value of units transferred to AssemblyStep by Step Solution
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