requirement 2 drop down choices:
1. an agreement or a divergence
2. not useful or useful
3. not to place undue reliance or to rely
requirement 3 drop down choices:
1. high or low
2. high or low
3. downward or upward
4. demand or supply
5.
stan hep Speedy, Inc., is a manufacturer of the very popular G36 motorcycles. The management at Speedy has recently adopted absorption costing and is debating which denominator-level concept to use. The G36 motorcycles soll for an average price of $8,700. Budgeted fixed manufacturing overtread costs for 2017 are estimated at $4,536,000. Speedy, Inc., uses subassembly operators that provide component parts. The following are the denominator-level options that management has been considering (Click the icon to view the options.) Read the requirements Requirement 1. Calculate the budgeted ford manufacturing overhead cost rates under each concept. (Round your answers to two decimal places) Budgeted fixed Denominator level manufacturing capacity concept overhead cost rate Theoretical Practical Normal Master budget Requirement 2. What are the benefits to Speedy, Inc., of using the theoretical capacity or practical capacity The variances that arise from use of the theoretical or practical level concepts wil signal that there between the supply of capacity and the demand for capacity. This wormation is managers. As a general rule, however, it is important on the production volume variere of the economic costs of unused capacity Requirement 3. Under a cost-based oricine system what are the native sets of a master budoet denominator vol? What are the lives? Enter any number in the edit fields and then continue to the need question Save for Later cycles. The management at Speedy has recently adopted absorption costing and is debating wh d manufacturing overhead costs for 2017 are estimated at $4,536,000. Speedy, Inc., uses subas has been considering: More Info a. Theoretical capacity based on three shifts, completion of three motorcycles per shift, and a 360-day year3 x 3 x 360 = 3,240. b. Practical capacity theoretical capacity adjusted for unavoidable interruptions, breakdowns, and so forth-3 x 2 x 320 = 1,920. C. Normal capacity utilization estimated at 1,200 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 1,500 units. usi Print Done ctical Je demar on the production-volume variance as a measure of the economic costs of unuse are the negative aspects of a master-budget denominator level? What are the positive aspects? to the next question. MacBook Pro oceny adapledoborplion costing and is debating which denominator level concept to use. The 36 motorcycles soll for an average price of $4,700. Budgeted for manufacturing overhead costs for 2017 are estimated at 54.536,000. Speedy, Inc. subassembly operators that provide component parts. The feliqwing are the denominator vel options that management has been considering Click the loon to view the options.) Read the requirements fo Master-budget Requirement 2. What are the benefits to Speedy, Ino. of using either theoretical capacity or practical capacity? The variances that arise from use of the theoretical or practical level concepts will signal that there is between the supply of capacity and the demand for capacity. This information is managers. As a general rule, however, it is important on the production volume variare as a measure of the economic costs of unused capacity Requirement 3. Under a cont based pricing system, what are the negative aspects of a master budget denominator level? What are the positive pech? What are the negative aspects of a master budget denominator level? Under a cow-based pricing system, the choice of a master budget level denominator will lead to prices when demand is low, conversely, I will lead to prices when demand is high. This has been referred to the demand spiral What are the positive me? The positive spects of the master budget denominator level are that it is based on for the product and indicates the price at which to enable the company to make a profit Enter any number in the edit fields and then continue to the next question Save for pos aspects and is low; conversely all costs per unit een referred cost of unused capacity allocated to each unit fixed manufacturing resources to produce each unit tes the price at which would be recovered
