A Company's Total Expected Overhead Costs and Related Overhead Data

question 145

Essay

A company's total expected overhead costs and related overhead data are shown in the following table:
$$\begin{array} { | l | l | l | } \hline & \text { Department A } & \text { Department B } \\\hline \text { Direct labor hours } & 85,000 \mathrm { DLH } & 72,000 \mathrm { DLH } \\\hline \text { Machine hours } & 79,050 \mathrm { MH } & 37,395 \mathrm { MH } \\\hline \text { Manufacturing overhead costs } & ? & ? \\\hline \text { Departmental overhead rate } & \$ 4 \text { per } \mathrm { MH } & \$ 8.31 \text { per DLH } \\\hline\end{array}$$ a. Compute estimated manufacturing overhead costs for Department A.
b. Compute estimated manufacturing overhead costs for Department B.
c. Compute the departmental overhead rate based on direct labor hours for Department A.
d. Compute the departmental overhead rate based on machine hours for Department B.

Calculate net price given list price and trade discount.

Calculate list price given net price and trade discount.

Understand and apply the concept of trade discounts.

Calculate trade discount rate given list and net prices.

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Definitions:

Spanking

A form of punishment that involves hitting the buttocks of another person to cause physical pain.

Conditioned

In behavioral psychology, refers to responses or behaviors that have been learned or acquired through conditioning, which involves associating a previously neutral stimulus with a stimulus that naturally evokes a response.

Positive Reinforcer

A desirable stimulus that increases the likelihood of a behavior being repeated when it is presented following that behavior.

Money

A medium of exchange in the form of coins and banknotes; used to facilitate the sale, purchase, or trade of goods and services.