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Comprehensive Managerial Accounting Question PLease D. Using the allocation rates in part B, compute the under - or Overapplied overhead for the St. Falls plant
Comprehensive Managerial Accounting Question PLease
D. Using the allocation rates in part B, compute the under - or Overapplied overhead for the St. Falls plant for the year. Explain the impact on net income of assigning the under- or Overapplied overhead to cost of goods sold rather than prorating the amount between inventories and cost of goods sold. E. A St. falls subcontractor has offered to produce the parts for job no. 110 for a price of $8 per unit. Assume the St. Falls sales force has already committed to the bid price based on the calculations in part B. should St. Falls buy the $8 per unit part from the subcontractor or continue to make the parts for job no. 110 itself? F. Would your response to part E change if the St. Falls plant would use the facilities necessary to produce parts for job no.110 for another job that could earn an incremental profit of $15,000? G. If the subcontractor mentioned in part E is located in Mexico, what additional international environmental issues, other than price, will Gilster and St. Falls management need to evaluateStep by Step Solution
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