Ramos Company has identified the following overhead activities, costs, and activity drivers for the coming year:

Activity Expected cost Activity driver Activity capacity

Setting up equipment $120,000 Number of setups 300

Ordering cost 90,000 Number of orders 9,000

Machine costs 210,000 Machine hours 21,000

Receiving 100,000 Receiving hours 5,000

Ramos produces two models of dishwashers with the following expected prime costs and activity

demands:

Model A Model B

Direct materials $150,000 $200,000

Direct labor $120,000 $120,000

Units completed 8,000 4,000

Direct labor hours 3,000 1,000

Number of setups 200 100

Number of orders 3,000 6,000

Machine hours 12,000 9,000

Receiving hours 1,500 3,500

The company’s normal activity is 4,000 direct labor hours.

Required:

a) Determine the unit cost for each model using direct labor hours to apply overhead.

b) Determine the unit cost for each model using the four activity drivers.

c) Which method produces the more accurate cost assignment? Why?​

The hawthorne works was a large western electric factory with 45,000 employees. during the 1920s and 1930s, hawthorne works was the site of some well-known industrial studies. in one of the studies, researchers investigated the impact of different working conditions on worker productivity. prior to the start of the study, researchers secretly measured workers' productivity for several weeks. then researchers chose two workers, who then chose their own teams. the teams were separated from the general workforce and completed their work in different experiment rooms where the researchers could observe them more easily. over a 5-year period researchers manipulated the structure of the workday for each team (number and duration of breaks and number of hours per shift). for each of these changes in working conditions, the researchers measured the effect on productivity. for some conditions, such as frequent short breaks, workers rebelled by intentionally decreasing productivity. why did the researchers secretly measure the workers' productivity before creating the two treatment groups? a, to create similar treatment groups so that a cause-and-effect relationship could be establishedb, to draw conclusions about the productivity of all workers in the plant based on the test groupsc, to directly control for confounding variablesd, to provide a baseline for measuring worker productivity

Corporations with suppliers, vendors, and customers all over the globe are referred to as : a) global corporations b) international corporations c) multinational corporations d) multicultural corporations

20. to add body to a hearty broth, you may use a. onions. b. pasta. c. cheese. d. water.