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Project Description:

question 1 (1 point)
question 1 saved




motorcade company has three service departments (s1, s2, and s3) and two production departments (p1 and p2). the following data relate to motorcade's allocation of service department costs:



budgeted costs

nbr of employees




s1

$3,000,000

75




s2

2,580,000

50




s3

1,000,000

25




p1

150




p2

225




service department costs are allocated by the direct method. the number of employees is used as the allocation base for all service department costs.

calculate the total service department cost allocated to each production department p1.






calculate the total service department cost allocated to production department p1

your answer:question 1 options:


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question 2 (1 point)
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el dorado company has two production plants. recently, the company conducted an abm study to determine the cost of activities involved in processing orders for parts at each of the plants. how might an operations manager use this information to manage the cost of processing orders?

question 2 options:



set up an abc costing system



identify benchmarks



compare the cost to process an order at each plant and the nature of the orders to determine if costs are out of control. if out of control, investigate



close down the plant with the highest cost to increase profits

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question 3 (1 point)
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infinity designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. to stimulate business, the company is considering exhibiting at the home and garden expo. the exhibit will cost the company $12,000 for space. at the show, infinity designs will present a slide show on a pc, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous


jobs.

the company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. for the previous year, profit was as follows:







revenue $201,000
less:
design supplies (variable cost) $17,000
salary of samantha spade (owner) 80,000
salary of kim bridesdale (full time employee) 55,000
rent 18,000
utilities 6,000
depreciation of office equipment 3,600
printing of advertising materials 700
advertising in middleton journal 2,500
travel expenses other than depreciation of autos (variable cost) $2,400
depreciation of company cars 9,000


required:
calculate the impact of the exhibit on company profit.

your answer:question 3 options:


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question 4 (1 point)
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each year, sunshine motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. for the current year, the company is considering outsourcing the survey to global associates, who have offered to conduct the survey and summarize results for $30,900.craig sunshine, the president of sunshine motors, believes that global will do a higher-quality job than his company has been doing, but is unwilling to spend more than $10,000 above the current costs. the head of bookkeeping for sunshine has prepared the following summary of costs related to the survey in the prior year.

mailing $16,200

printing (done by lester print shop) $4,500

salary of pat fisher, part-time employee who stuffed envelopes and summarized data when surveys were returned
(100 hours x $15) $1,500

share of depreciation of computer and software used to track survey responses and summarized results. $1,100

share of electricity/phone/etc. based on square feet of space occupied by pat fisher vs. entire company. $500


required: what is the incremental cost of going outside versus conducting the survey as in the past?





























your answer:question 4 options:


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question 5 (1 point)
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howell corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below:









cost per unit


variable costs




direct material

$940


direct labor

600


variable overhead

300












fixed costs




depreciation of equipment

500


depreciation of building

275


supervisory salaries

300












the company has an offer from duvall valves to produce the part for $2,000 per unit and supply 1,000 valves (the number needed in the coming year). if the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas. the equip
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Price Type: Fixed

Project Budget: $0 to $10
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