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Bridgeton
Essay specific features
Written by:
Antonio H
Date added:
December 6, 2015
Level:
University
Grade:
B
No of pages / words:
2 / 549
Was viewed:
590 times
Rating of current essay:
Essay content:
In 1987, overhead was allocated to each product at the rate of 437% of direct labor costs. As you can also see in exhibit 1, there was a significant increase in the overhead allocation rate from 1988 to 1989. This was due to the outsourcing of oil pans and muffler-exhaust systems which resulted in a decrease in labor...
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Product costs for the oil pans and muffler-exhaust systems were classified as Class III by the consultants due to the fact that their costs were 15% higher than competitors. However, we do not feel that the appropriate measures were used when classifying product costs. Gross-margin and gross-margin percentage calculations are useful when wanting to compare the profitability of different products...
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