Prescott Lumber processes logs into grade A and grade B lumber. Logs cost $19,200 per load. The milling process produces 6,000 units of grade A with a market value of $44,800, and 18,000 units of grade B with a market value of $6,400. The cost of the milling process is $8,192 per load.

Required:

a. If the costs of the logs and the milling process are allocated on the basis of units of output, what cost will be assigned to each product? (Do not round intermediate calculations.)

b. If the costs of the logs and the milling process are allocated on the basis of the net realizable value, what cost will be assigned to each product? (Do not round intermediate calculations.)

c-1. How much profit or loss does the grade B lumber provide using the data in this problem and your analysis in requirement (a)? (Do not round intermediate calculations.)

c-2. Is it really possible to determine which product is more profitable?

Yes
No

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.