Answer the Following Questions Using the Information Below:
Globe Inc

question 8

Multiple Choice

Answer the following questions using the information below:
Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases tapes from Globe at $25.00 per DVD; DVDs are shipped in packages of 60. Globe pays all incoming freight, and DVD Mart does not inspect the DVDs due to Globe's reputation for high quality. Annual demand is 312,000 DVDs at a rate of 6,000 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order lead time is one week. The following cost data are available:
$\begin{array} { l } \text { Relevant ordering costs per purchase order}&\$114.50 \\ \text {arrying costs per package per year: }& \\ \text {Relevant insurance, materials handling, }& \\ \text {breakage, etc., per year }&\$4.50 \\\end{array}$

-What are the annual relevant ordering costs?

• A) $9,057
• B) $7,157
• C) $8,266
• D) $7,121

Explain the recalibration process of predetermined overhead rates and its significance at the beginning of each accounting period.

Understand the concepts and calculations involved in job-order costing.

Calculate predetermined overhead rates for different departments.

Apply manufacturing overhead to jobs using departmental rates.

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Definitions:

E-Commerce

Electronic commerce is the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

Essential Skill

A skill considered necessary for success in a specific job or task, often foundational skills like communication or critical thinking.

Generation X

Refers to the cohort of people born approximately between 1965 and 1980, known for their adaptability, tech-savviness, and value of work-life balance.

Baby Boomer Generation

A demographic group defined as those born post-World War II, from 1946 to 1964, known for significant impacts on politics, economy, and culture.