Catawba

4. Technology and content expenses increased by $350,000, due to additional required Website maintenance, stemming from a significant increase in product offerings and in partnerships with other websites. Despite this, the per unit cost remained at $0.79. This increase was offset by a higher than expected sales volume.

When we consider the laminate technology, we have to add $2.25M to the CAPX for first year and add $225,000 to depreciation per annum from the second year to the last year. Moreover, we assume the

|2.2 Explain the purpose of using estimations when developing a budget and ways of doing so |Question 2 Page 3 |

purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year

I don’t know how it’s been around here in the past, but this year, at least, the budget will prove to be a valuable tool.” Nicole waved away Jeff’s retort. “Anyway, one way or another I have to create one and, as you know, the process always starts with projected sales. Do you have a copy of last quarter’s results?” “Yes, right here somewhere,” Jeff said, shuffling papers around on his desk.

-The estimated depreciation lives on certain U.S. plants, machinery and equipment changed. The economic life of these assets was increased, so the depreciation expense was lowered.

For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.

Model 1: the criterion is no additional products are dropped. So, we can assume no additional products will be dropped in 1991 from 1990. The change in overhead allocation rate from 1990 to 1991 will be similar to the change from 1987 to 1988. The differences in 1987 to 1988 are fairly not important. If we assume that change in overhead from 1990 to 1991 will also be omitted because the product line has not changed; therefore, the 1991 overhead allocation rate will be the same as the 1990 overhead allocation rate of 563%.

She thought about how unfair it was for countless of innocent people to go to work only to end up suffering and dying.

Discuss the fact she stated that most surprised you, and discuss the implication of this new information.

2. Purpose (What is it used for and who might use it-certain occupation, specific group etc?))

Under the existing cost system for the turning machine area, there are two direct costs and three cost pools for overhead costs. The two direct costs are simply Direct Labor and Direct Material, which are traced to the cost object, which is Machine Parts. The total overhead is split into three cost pools, which are the following: overhead applied on direct labor, overhead applied on material dollars, and overhead applied on ACTS machine hours. Furthermore, each cost pool is broken down into direct and period sub categories. The mentioned cost pools for the following cost drivers: Direct Labor dollars, Material dollars, and machine hours.

Andres was forced to import product from French division as he ran out of capacity several times due to new machines performing inadequately. This added an overhead expense of approximately 2147 (Additional maintenance costs + Transfer costs)

a) The first involved the disparity in the exposure that her product received and the availability of the product itself. From a logistical perspective, the challenge for her was how to continue to generate buzz and interest in the product prior to the actual ability to develop, manufacture, market and sell the product.

while some chose to include the cost as part of expected production. Some submitted financial