FINANCE FOR MANAGERS1
Table of Contents
Question 1........................................................................................................................................2
Answer (a)...................................................................................................................................2
Answer (b)...................................................................................................................................2
Answer (c)...................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................5
1. Estimation of overhead allocation rate.................................................................................5
2. Total cost for the special order.............................................................................................5
3. Cost of the special order through using the machine time as overhead allocation rate........6
4. Minimum acceptable price per trailer...................................................................................6
5. Segmented overhead cost.....................................................................................................6
Reference.........................................................................................................................................7

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