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yield the following detailed information: which customer ( s ) will be unhappy? How would you respond to these concerns? Under the simple - costing
yield the following detailed information:
which customers will be unhappy? How would you respond to these concerns?
Under the simplecosting system,
was likely unhappy about their bill, because the contract appears to have been
If the new departmentbased rates are used to price contracts,
will likely be happier
about their bill.
If the new departmentbased rates are used to price contracts,
rates, their bills will be
will likely be unhappy. This is because their bills under the simplecosting system appear to have been
Using the departmentbased
If the new departmentbased rates are used, AP should explain to the unhappy customers how the calculation was done, and point out their high use of
relative to
Requirement How else might AP use the information available from its departmentbydepartment analysis of manufacturing overhead costs? Select all that apply.
Other than for pricing, AP can also use the information from the departmentbased system
A to examine and streamline its own operations so that there is maximum valueadded from all indirect resources.
B to reevaluate employee pay scales.
C to provide incentives to professional staff.yield the following detailed information:
Requirement Compute the manufacturing overhead allocated to each customer in using the simple costing system that uses machinehours as the allocation base.
Determine the formula needed to calculate overhead using the simple costing method and then calculate AP's manufacturing overhead rate for Round your answer to the nearest cent.
Calculate the overhead allocated to each customer using the simple costing method. Round your answers to the nearest whole dollar.
Data table
Requirement Compute the manufacturing overhead allocated to each customer in using departmentbased manufacturing overh
Determine the formula used to calculate the departmentbased manufacturing overhead rates:
AP's manufacturing overhead rates by department are as follows:
Manufacturing Overhead Rate
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