Homework Answers
Answer 1:- As of now, the organization is structured as Departmentalization in which different department or division in the organization operate and function separately. This is not an effective structure for the organization as this is creating a lot of problems for the company in producing the new product due to lack of coordination.
Answer2:- The management can either go for the Team-based Organizational Structure in which the members of different departments can be combined to work on a project. As the company is looking to produce high quality sophisticated products, thus the involvement of various department’s employee will help in creating the coordinated efforts and better utilization of resources.
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system allocates manufacturing overhead to its three customers
based on machine-hours and prices its contracts based on full
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charged noncompetitive prices, so CP’s controller Duncan Everett
realizes that it is time to examine the consumption of overhead
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departments that consume overhead resources:...
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Ideal Manufacturing Company has supported a research and
development (R&D) department that has for many years been the
sole contributor to the company’s new farm machinery
products.
The R&D activity is an overhead cost center that performs
services only to in-house manufacturing departments (four different
product lines), all of which produce
agricultural/farm/ranch-related machinery products.
The department has never sold its services to outside companies.
But, because of its long history of success, larger manufacturers
of agricultural products have approached Ideal...
Car Plant (CP) designs and produces automotive parts.
In 2017, actual manufacturing overhead is $280,000 CP's simple
costing system allocates manufacturing overhead to its three
customers based on machine hours and prices its contracts based on
full costs. One of its customers has regularly complained of being
charged noncompetitive prices, so CP's controller Dixon Johnson
realizes that it is time to examine the consumption of overhead
resources more closely. He knows that there are three main
departments that consume overhead...
Automotive Products (AP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $280,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Johnson realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Car Plant (CP) designs and produces automotive parts. In 2017,
actual manufacturing overhead is $280,000. CP’s simple costing
system allocates manufacturing overhead to its three customers
based on machine-hours and prices its contracts based on full
costs. One of its customers has regularly complained of being
charged noncompetitive prices, so CP’s controller Duncan Everett
realizes that it is time to examine the consumption of overhead
resources more closely. He knows that there are three main
departments that consume overhead resources:...
Automotive Products (AP) designs and produces automotive parts in 2017, actual manufacturing overheads $318,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine hours and prices its contracts based on all costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Johnson rares that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
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