Hypothetical examples of manufacturing companies, Accounting Basics

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Hypothetical examples of manufacturing companies

Here are 2 hypothetical examples of manufacturing companies:
1. Williams Watches builds fine watches by hand sell them to jewelery company. The workers are highly skilled in the art of building watches.
2. Collins Computers builds using robotic manufacturing system with only minor interventions by humans.
Questions:
a. How is predetermined overhead rate calculated?
b. What denominator would be appropriate for each company in the POR calculation and why?

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Accounting Basics: Hypothetical examples of manufacturing companies

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Accounting Basics: Hypothetical examples of manufacturing companies

Reference No:- TGS0708436

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Should the wheel division manager accept the offer

Q : Explain whether the dispoables division should accept

Q : What can you conclude about research

Q : What discount rate would produce a net present value of zero

Q : Hypothetical examples of manufacturing companies

Q : Determine the net present value of the investment proposal

Q : Several competitors in the industry

Q : Why the expected number of payments in exhibit

Q : Different methods of setting internal-transfer pricing

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Hypothetical examples of manufacturing companies

Reference No:- TGS0708436

Recent Questions Asked Accounting Basics

Q : Should the wheel division manager accept the offer

Q : Explain whether the dispoables division should accept

Q : What can you conclude about research

Q : What discount rate would produce a net present value of zero

Q : Hypothetical examples of manufacturing companies

Q : Determine the net present value of the investment proposal

Q : Several competitors in the industry

Q : Why the expected number of payments in exhibit

Q : Different methods of setting internal-transfer pricing

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