{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 12 Homework 2 - department slows down more cost...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 Problem 25 1. Machine Tools: $0.50*60,000 + .65*$80,000 = $82,000 Special Products: $0.50*60,000 + .35*$80,000 = $58,000 2. Both divisions used the same amount of machine hours so the $163,000 would be split equally or $81,500 per division. 3. Allocating all of the costs based on machine hours is unfair because if one
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: department slows down, more cost will be assigned to the other department. 4. Managers will understate their estimates so that less cost is assigned to them. Top management could implement penalties for underestimating and reward accurate estimates....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern