2. The changes from 1987 to 1988 were not significant. However‚ the changes in overhead allocation rates in 1989 and 1990 appeared to be significant when compared to 1987 rates. Because in 1988 and 1989‚ total overhead costs decreased about 25%‚ but direct labor costs‚ direct material costs in decreased even more (about 40~50%) ‚ and sales decreased about 30% . That caused the changes of rate became significant. According to the case‚ at the end of the 1988 model year “oil pans and muffler
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not considering aging cost as part of manufacturing cost‚ and has been showing consistent sales and profits. Due to markets forecasts of increased sale in future years‚ company has decided to increase production from 43000 (in 1987) to 63000 (in 1988) barrels. Hence this results in loss in Income statement as per current practice of costing. But company want to apply for loan‚ and bank will not view loss favorably nor will other stakeholders. So let’s consider various cost accounting options which
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Reagan signed the Drug-Free Workplace Act of 1988 on November 18‚ 1988. The intent of the bill was to establish the foundation of a drug-free workplace in the areas that the federal government could affect outside the federal government; i.e.‚ the workplaces of federal grantees and contractors. The Drug-Free Workplace Act of 1988 does not mention drug testing at all. However‚ many companies have made drug testing a requirement. The Drug-Free Workplace Act of 1988 has 7 compliance requirements. (Miller
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from the real OH raising through the real activities (see exhibit 2) of $107‚954. (Question 2) Similarity‚ we can easily calculate the overhead allocation rate to labor cost for the year 1987‚ 1988‚ 1989 and 1990. Comparatively‚ they will be 437%‚ 434%‚ 577% and 563% (See table 2a). It was very clear that 1988 was not significantly changed but the year 1989 and 1990 were dramatically changed in comparation with the year 1987 because in these 2 years‚ two products of
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allocation rate for each of the model years from 1988 through 1990: 1987 1988 1989 1990 OH Rate 435% 435% 575% 565% It can be seen from the table that‚ after outsource of Muffler-exhaust systems and oil pans‚ the overhead rate was dramatic increase from 435 % in 1988 to 575% in1989. The overhead costs went from 109‚890 in 1988 to 78‚157 in 1989‚ finding a 28.88% reduction. But at the same time‚ the direct labor went from 25294 in 1988 to 13‚537 in 1989 with 46.48% reduction. Obviously
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The long-term GYE forest recovery trend also differs by ownership. Forests on national forest land generally grow back faster than forests in national parks and wilderness areas. During the two decades following the catastrophic fires in 1988‚ national forests consistently had higher values of forest recovery than national parks and wilderness areas. Despite the short-term similarity to the wilderness areas in the first few years after the 1997 fires‚ forest recovery in the GYE national forests rapidly
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model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? Solution: Based on the given info we calculate Overhead Allocation Rate =Overhead for PeriodAllocation Base for Period for each allocation bases vis. Sales‚ Direct Material and Direct Labor Year | 1987 | 1988 | 1989 | 1990 | Sales | $330‚154 | $351‚071 | $216‚338 | $226‚542 | Direct
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drop in 1988. The same trend follows with its inventory days‚ increasing in 1987 and decreasing in 1988‚ which would signal that its turnover was slower in 1987 and faster in 1988. The accounts payable days increased in 1987 while slightly decreasing in 1988. This is a healthy trend as Interco was able to take longer to pay off its current expenses than the past. When looking at the company collectively‚ Interco also looks healthy‚ with sales increasing 4.04% in 1987 and 13.39% in 1988. Its earnings
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below. Blockbuster-Entertainment (Ticker symbol: BV‚ Price per share: $33 ½) increased owned and franchised video stores from 19 at the end of 1986 to 415 at December 31‚ 1988. In the same period revenue jumped from $7.4 million to $136.9 million. Reported earnings also leaped; from $.34 per share in 1986 to $.57 per share in 1988. The stock carries an historical Price to Earnings ratio of 59‚ and there were 25‚741‚549 shares of common stock issued and outstanding as of 12/31/88. A) Some of Blockbuster’s
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of her name. Only when Martha has ‘everything packed into the car’ (Weldon‚ 1988‚ P.309) does her chauvinistic husband Martin stroll outside to ‘take the wheel’ (Weldon‚ 1988‚ P309) as any stereotypical man would. There is an implication that women shouldn’t go out to work if they have children demonstrated in the quote ‘it wasn’t the best thing for the children‚ but that must be Martha’s moral responsibility’ (Weldon‚ 1988‚ P309). This partly demonstrates the outdated social context of the 70s‚ but
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