Someone please can help me to solve the case study in chapter 4 , 27C in the textbook managerail accounting for managers , 4th edition by Noreen

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Its a long case study question. I cananot type it. Is there anyway someone can look into the textbook solution in Chegg and look for chapter 4 , 27C in the textbook managerail accounting for managers , 3rd h edition by Noreen

Explain how shaving overhead rate usually results in a big boost in net operating income at the end of the 1. Should Cristin Madsen go along with the general manager's request to reduce the di hours in the predetermined overhead rate computation to 105.000 direct labor-hours 2. CASE 4-27 Critical Thinking Interpretation of Manufacturing Overhead Rates LO4-1, LO4-2 arpton Fabricators Corporation manufactures a variety of parts for the automotive indy sry company uses a job-order costing system with a plantwide predetermined overhead rate e direct labor-hours. On December 10, 2015, the company's controller made a preliminary of the predetermined overhead rate for 2016. The new rate was based on the estimated tota facturing overhead cost of $2.475,000 and the estimated 52,000 total direct labor-hours for $2,475,000 Predetermined overhead rate 32,000 hours S47.60 per direct labor-hour This ber 11. The rate that had been used during 2015. One of the subjects discussed at the meeting was a new predetermined overhead rate was communicated to top managers in a meeting on rate did not cause any comment because it was within a few pennies of the Overhed the production manager to purchase an automated milling machine built by Central Roba president of Sharpton Fabricators, Kevin Reynolds, agreed to meet with the regional sie representative from Central Robotics to discuss the proposal representative. The following discussion took place Reynolds: Larry Winter, our production manager, asked me to meet with you because he is inter On the day following the m ested in installing an automated milling machine. Frankly, I am skeptical. You're going to have to show me this isn't just another expensive toy for Larry's people to play with Warner: That shouldn't be too difficult, Mr. Reynolds. The automated milling machine has three major advantages. First, it is much faster than the manual methods you are using. It can process about twice as many parts per hour as your present milling machines. Sccond it is much more flexible. There are some up-front programming costs, but once those have been incurred, almost no setup is required on the machines for standard operations. You just punch in the code of the standard operation, load the machine's hopper with raw material. and the machine does the rest. Reynolds: Yeah, but what about cost? Having twice the capacity in the milling machine area Warner: I was getting there. The third advantage of the automated milling machine is lower won't do us much good. That center is idle much of the time anyway Larry Winters and I looked over your present operations, and we estimated that the uo- mated equipment would eliminate the need for about 6,000 direct labor-hours a year. Wb your direct labor cost per hour? Reynolds: The wage rate in the milling area averages about $21 per hour. Fringe benefits raise that figure to about $30 per hour Warner: Don't forget your overhead Reynolds: Next year the overhead rate will be about $48 per hour. Warner: So including fringe benefits and overhead, the cost per direct labor-hour is about Reynolds: That's right Since y ou save 6,000 direct labor-hours per year, the Warner: cost savings would amount about $468,000 a year Ids: That's pretty impressive, but you aren't giving away this equipment are you Several options are available, including leasing and outright purchase. Just our 60-month lease plan would require payments of only $300,000p son purposes, Reynolds Sold! When can you install the equipment