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can someone just answer this correctly. im not paying u i pay for a chegg prescription already can u just answer the question Zippy, Inc.,
can someone just answer this correctly.
im not paying u i pay for a chegg prescription already can u just answer the question
Zippy, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Zippy has recently adopted absorption costing and is debating which denominator-level concept to use. The G36 motorcycles sell for an average price of $8,900, Budgeted fixed manufacturing overhead costs for 2017 are estimated at $3,600,000. Zippy, Inc., uses subassembly operators that provide component parts. The foliowing are the denominator-level options that management has been considering: (Click the icon to view the options.) Read the requitements. Requirement 1. Calculate the budgeted fixed manufacturing overhead cost rates under each concept. (Round your answers to two decimal places.) Requirements 1. Calculate the budgeted fixed manufacturing overhead cost rates under the four denominator-level concepts. 2. What are the benefits to Zippy, Inc., of using either theoretical capacity or practical capacity? 3. Under a cost-based pricing system, what are the negative aspects of a master-budget denominator level? What are the positive aspects? More info a. Theoretical capacity - based on two shifts, completion of five motorcycles per shift, and a 360-day year- 25360=3,600. b. Practical capacity-theoretical capacity adjusted for unavoidable interruptions, breakdowns, and so forth 24320=2,560. c. Normal capacity utilization-estimated at 2,000 units. d. Master-budget capacity utilization-the strengthening stock market and the growing popularity of motorcycles have prompted the marketing department to issue an estimate for 2017 of 2,400 units Step by Step Solution
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