An appliance store carries a specialty model of microwave ovens. the demand for the microwave oven is relatively constant at 2500 units per year. placing an order costs the store $500 regardless the quantity ordered. carrying one unit over a one year period costs the store $50. the store opens 300 days per year and the lead time for this item is 12 working days. because of the special features of the microwave oven, customers may buy it whether it is currently available in the store. hence, the store is considering selling it on a back order basis if it is beneficial. it is estimated that one unit on back order for a one year period costs the store $150. assuming shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual holding cost. a) 224b) 258c) 260d) 65e) none of the above

Which of the following statements accurately describes how costs and benefits are calculated?

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?