Would the issue in the above question become moot if we employed predetermined overhead rates? Why does

Question:

Would the issue in the above question become moot if we employed predetermined overhead rates? Why does the answer depend on whether the decline in volume was predictable?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

See More Books

Question Posted: Feb 20, 2013 10:10 AM

See More Questions

Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?
Why must a company use predetermined overhead rates when using job order costing?
Does your answer to the prior question depend on whether the investment funds come from earnings and profits or from new investment dollars? Explain.
Fill in the Blanks The giant tubeworms found in the hydrothermal vents are called lack both a gut and a mouth. Instead, they have an organ called a (types of elements, e.g. potassium, sulfur,...
Estimate the limit numerically or state that the limit does not exist. If infinite, state whether the one-sided limits are or - . 21. 23. sin 2x im cos -1 im
The intangible assets section of Time Company at December 31, 2010, is presented below. Patent ($100,000 cost less $10,000 amortization)..... $ 90,000 Copyright ($60,000 cost less $24,000...
Between z = 1.96 and z = 1.96 Find the indicated area under the standard normal curve. If convenient, use technology to find the area.
What is a firms fundamental, or intrinsic, value? What might cause a firms intrinsic value to be different than its actual market value?
The position of a particle moving along a coordinate line is s = 37+4t, with s in meters and t in seconds. Find the rate of change of the particle's position at t = 3 sec. The rate of change of the...
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
Suppose a support activity allocated all of its costs based on actual usage of its services and use of actual rates. In this scenario, how does the activity volume in one department affect the costs...
How does the use of practical capacity further alleviate the issue identified in Question 16.15?
The table shows the values for the current, I, in an electric circuit and the resistance, R, of the circuit. a. Graph the ordered pairs in the table of values, with values of I along the x-axis and...
We consider an investment in a European call option. The investment horizon is [0,7]. The option will mature at T > 7 with strike price K and it is written on a non-dividend-paying stock whose price...
The following information is available regarding the labour costs in a factory department for a Week: Payroll hours: Production Training Idle time Total Rate per hour: Basic Overtime premium Indirect...
For each case, a-k, use the equation to find the AEC AEC AE op & maint+ [First Cost ia - ic - trd id dr ic = rd id + (1-rd) * ie stia, n)-s Salv v (4,ila, n) t(AE depr}]/1 t) ie= return on equity,...
An apple farmer has determined that if he plants 100 trees per acre, he of 50 bushels per tree. For every tree that he plants over 100, the yield bushels per tree. Let X be the number of trees over...
An open loop state space system with A = B = [], C = [10] and D = 0 is given: u B muta X. B D X. A Fig. 1 A proportional block is added to this system to make closed loop system: D X K Gain C -1 -3,...
Many names were mentioned in this section. Give a brief description for each person named in Problems 1633, telling what each person contributed to the development of computers. Charles Babbage
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
To keep the onset of SD from reinforcing responses in S, one needs to add a(n) _ contingency. a EXT b IRT c DRO d PRP
Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E). a. Gain on sale of land...
Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E). a. Gain on sale of land...
Eris, Inc., reports the following for 2012: Income from continuing operations before income tax .........$800,000 Extraordinary property loss from hurricane .............. $100,000* Loss from...
What is the worst case running time of the following sudo codes, in 0- notation? Suppose that all arithmetic operations (including simple multiplication) take a constant amount of time. Justify your...
4. Let G be a pseudorandom generator with expansion factor (n) > 2n. In each of the following cases, say whether G' is necessarily a pseudorandom generator and explain why or why not. Here, "||...
Write the code for the del () method in the following doubly linked list class public class ObjDList { private Obj Node list; private Obj Node tail; public ObjDList() { list = null; tail = null; }...

Would the issue in the above question become moot if we employed predetermined overhead rates? Why does

Question:

Step by Step Answer:

Yes the use of predetermined overheads does solve the problem to an ...View the full answer

Managerial accounting

Students also viewed these Managerial Accounting questions