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Question: The overhead allocation rate used in the 1 9 8 7 model year strategy study at the Automotive Component & Fabrication Plant ( ACF
Question: The overhead allocation rate used in the model year strategy study at the Automotive Component & Fabrication Plant ACF was of direct labor dollar cost. Calculate the overhead allocation rate using the model year budget. Why do you get different numbers? Calculate the overhead allocation rate for each of the model years through AreThe overhead allocation rate used in the model year strategy study at the Automotive Component & Fabrication Plant ACF was of direct labor dollar cost. Calculate the overhead allocation rate using the model year budget. Why do you get different numbers?Calculate the overhead allocation rate for each of the model years through Are the changes since in overhead allocation rates significant? Why have these changes occurred?Consider two products in the same product line:Product Product Expected selling price$$Standard material costStandard labor costBased on the and model year budgets, calculate the expected gross margins as a percentage of selling price on each product. Assume that selling price and material and labor cost do not change from standard.Assume that the selling prices, volumes, and materials costs for the model year will not change for fuel tanks and doors produced by the ACF of Bridgeton Industries. Assume also that if manifolds are produced, their selling prices, volume, and material costs will not change, either. Use the calculated overhead amount for your overhead.Prepare an estimate model year budget for the ACF in If no additional products are droppedIf the manifold product line is droppedExplain any additional assumptions you make in preparing your estimated model year budgets What will be the overhead allocation rate under the two scenarios?
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