Comparing abc and plantwide overhead cost assignments wellington chocolate company uses activity-based costing (abc). the controller identified two activities and their budgeted costs: setting up equipment $270,000 other overheard $3,960,000 setting up equipment is based on setup hours, and other overhead is based on oven hours. wellington produces two products, fudge and cookies. information on each product is as follows: fudge cookies units produced 8,000 445,000 setup hours 4,000 1,000 oven hours 3,000 21,000 required: round your answers to the nearest whole dollar, unless otherwise directed. 1. calculate the activity rate for (a) setting up equipment and (b) other overhead. a. setting up equipment $ per setup hour b. other overhead $ per oven hour 2. how much total overhead is assigned to fudge using abc? $ 3. what is the unit overhead assigned to fudge using abc? round to the nearest cent. $ per unit 4. now, ignoring the abc results, calculate the plantwide overhead rate, based on oven hours. $ per oven hour 5. how much total overhead is assigned to fudge using the plantwide overhead rate? $ 6a. the difference in the total overhead assigned to fudge is different under the abc system and non–abc system because . 6b. what is the difference in total overhead assigned to fudge under the two methods? $

You are the new chief information officer for the video-game developer, necturus games. the company has recently undergone a major expansion of its primary product, and you must staff up the is department and determine the best way to develop new game "capsules" for the game, "escape velocity."

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

According to this excerpt, a key part of our national security strategy is