Over-land Trucking and Freight: Relevant Costs for Decision Making
1. Assume Over-land could service the contract with existing equipment. Use Exhibit 1 to identify
the relevant costs concerning the acceptance of FHPs request to add two additional loads p
1) Explain how shaving 5% off the estimated direct labor hours in the base for the
predetermined overhead rate usually, results in a big boost in net operating income at the
end of the fiscal year.
Shaving 5% off the estimated direct labor hou
1) A sales budget is given below for one of the products manufactured by the Key Co.:
The inventory of finished goods at the end of each month must equal 20% of the next
month's sales. On December 31, the finished goods inventory totaled 4,000 units.
Barberry, Inc., mdnilactures aproifict c6llecl-FruiaJhe company uses a standard cost system and
has established the following standards for one unit of Fruta:
During June, the company recorded this activity related to production of Fruta:
For each cost incurred indicate whether it would most likely be a direct cost or an indirect
cost of the specified cost object by placing an X in the appropriate columns.
wages of direct laborers
rent of corp headqu
Preparing a budget is a common thing as the respect of a company, however, there
are some problems in the progress of budgeting. The first problem is budgets are too
rigid and prevent the fast response. The evidence indicates that only 20
Cat & Joes Pig Rig: Should We Stay or Should We Go?
1. List and briefly describe the advantages and disadvantages inherent to the food truck
business model as compared to traditional restaurants.
Lower cost, cause buying or renting a truck woul
It is good to offer to Jan educational leave because it only takes her 1 hour or 1 hour and a half
per day, this time can be partially covered by her lunch break. For Josephine, the time she chose
is so long that almost take up the whole afternoon busines
REST IN PEACE CLIPPY.
a. $0.16 per mile for gasoline.
b. $0.05 per mile for oil, minor repairs, and parts.
c. $480 per automobile per