subject
Business, 27.06.2019 09:00 sr814952

Binder manufacturing produces small electric motors used by appliance manufacturers. in the past year, the company has experienced severe excess capacity due to competition from a foreign company that has entered binder’s market. the company is currently bidding on a potential order from dacon appliances for 6,000 model 350 motors. the estimated cost of each motor is $45, as follows: direct material $20 direct labor $5 overhead $15 total $40. the predetermined overhead rate is $3 per direct labor dollar. this estimated by dividing estimated annual overhead ($15,000,000) by estimated annual direct labor ($5,000,000). the $15,000,000 of overhead is composed of $6,000,000 of variable costs and $9,000,000 of fixed costs. a. with respect to overhead, what is the opportunity, what is the opportunity cost of producing a model 350 motor? b. suppose binder can win the dacon business by bidding a price of $37 per motor (but no higher price will result in winning bid. should binder bid $37? c. discuss how an allocation of overhead based on opportunity cost would facilitate an appropriate bidding decision.

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 11:40, Josias13
In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?
Answers: 2
image
Business, 23.06.2019 02:40, Kenzijo33
If a country is looking to increase economic growth quickly, it should: choose the correct answer from the following choices, and then select the submit answer button. answer choices focus on natural resources and develop physical capital. make investments from domestic savings and adopt new technology. increase spending on human capital and start a new political approach. develop new technologies funded by the public sector.
Answers: 1
image
Business, 23.06.2019 05:30, Juanga122
Scientists developed the first successful human cell culture in vitro (grown in a lab) in the 1950s by removing cancer cells from a woman. this concept has allowed modern scientists to successfully grow organs. which of the following answers  bestdetermines why there was success?   neurons send a signal to the cell to multiply. a large blood supply to the cell allows enough nutrients for growth. cells are the basic unit of life and thus can regenerate if in a controlled environment. cells cannot reproduce on their own, and the scientist manipulates them to grow.
Answers: 1
image
Business, 23.06.2019 10:50, 19thomasar
What are examples of career fields skillsusa prepares students for? check all that apply. health science education agriculture construction manufacturing transportation information technology public safety multiple choice: health science education agriculture construction manufacturing transportation information technology public safety
Answers: 1
You know the right answer?
Binder manufacturing produces small electric motors used by appliance manufacturers. in the past yea...

Questions in other subjects:

Konu
Mathematics, 29.08.2021 05:40
Konu
History, 29.08.2021 05:40
Konu
Mathematics, 29.08.2021 05:40
Konu
Chemistry, 29.08.2021 05:40