We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer
Notice: Trying to get property of non-object in /var/www/html/wp-content/themes/theme/custom-features/cta/CTA.php on line 194

Costs and Manufacturing Overhead Essay

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Bridgeton Industries Case Assignment Questions
1. How much overhead cost would be saved by outsourcing production of muffler-exhaust systems and oil pans if a. Overhead costs were entirely fixed costs?
$0 would be saved because fixed costs do not affected by reduced number of labor caused by outsourcing. b. Overhead costs were entirely variable costs? (How is volume of activity measured at Bridgeton? Why is volume not measured by simply counting units produced?) All of them would be saved.

If using numbers in 1988 for estimate, (5,766,000+6,532,000)*434% = $53,373,320 would be saved.

Don't use plagiarized sources. Get Your Custom Essay on
Costs and Manufacturing Overhead
Just from $13,9/Page
Get custom paper

Bridgeton accumulates all manufacturing overhead costs into one cost pool, and use direct labor dollar cost as the allocation measure to apportion the overhead costs in the cost pool.

Unlike direct labor and direct material costs that can be traced to specific products, overhead costs could be administrative and manufacturing related so that not all of them are involved in ACF’s production. Therefore, there isn’t a high degree of correlation between the units produced and the amount of manufacturing overhead used.

2. How much overhead cost do you think Bridgeton and the consultants implicitly assumed would be saved by outsourcing muffler-exhaust systems and oil pans? They expect all overhead specific to product line of Muffler – Exhaust systems and oil pans would be saved, which is ($5,766,000+6,532,000)*434% = $533,733,20 (using 1988 data for estimate).

3. 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? a) divide total overhead ($) by total direct labor ($) showed in Exh.2 to get overhead rate. | 1987| 1988| 1989| 1990|

Overhead Rate| 437% = 107,954/24,682| 434% = 109,890/25,294| 577% = 78,157/13,537| 563% = 79,393/14,102|

Cite this Costs and Manufacturing Overhead Essay

Costs and Manufacturing Overhead Essay. (2016, Jul 17). Retrieved from https://graduateway.com/costs-and-manufacturing-overhead

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page