Springfield Manufacturing Produces Electronic Storage Devices, and Uses the Following

question 170

Essay

Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labour, and indirect manufacturing costs.Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basis of direct manufacturing labour costs of each line.Summary data for January for the most popular electronic storage device, the Big Bertha, was:
Required:
a.Compute the total manufacturing cost per unit for each product produced in January.
b.Suppose production will be reduced to 30,000 units in February.If indirect manufacturing costs include fixed costs then explain if the total cost per unit be higher or lower than in January.

Analyze the effect of changes in income levels on imports and exports.

Comprehend the concepts of unintended inventory adjustments and their implications for GDP.

Understand the relationship between autonomous changes in saving and investment and their impact on aggregate expenditure and GDP.

Recognize the effects of shifts in the aggregate expenditure line on real GDP.

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Definitions:

Myths

Widely held but false beliefs or ideas.

Succession Planning

A strategic process of identifying and preparing suitable employees to replace key roles within an organization in the future.

General Partnerships

A business partnership in which all partners share unlimited personal liability for the debts and obligations of the business and share in the profits and losses according to their agreement.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.