Marketing and Overhead Allocation Rate

Bridgeton Assignment 1. The knock allocation rate used in the 1987 model year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of head labor dollar cost. Calculate the overhead allocation rate development the 1987 model year compute. Why do you get different amount? 2. Calculate the overhead allocation rate for severally of the model geezerhood 1988 through 1990. Are the limitings since 1987 in overhead allocation rates momentous? Why have these variegates occurred? 3. Consider dickens increases in the same product bound Product 1 Product 2Expected Selling Price $62 $54 pattern Material Cost 16 27 Standard Labor Cost 6 3 Calculate the expected unwashed margins as a percentage of sell price on each product based on the 1988 and 1990 model year budgets, assuming sell price and material and labor cost do not change from standard. 4. Are the product cost reported by the cost constitution appropriate for use in the strategic analysis? 5. As sume that the selling prices, volumes, and material costs for the 1991 model year will not change for fuel tanks and doors produced by the ACF of Bridgeton Industries.Assume also that if manifolds are produced, their selling prices, volume, and material costs will not change either. a. Prepare an estimated model year budget for the ACF in 1991 (1) if no additional products are dropped. (2) if the manifold product line is dropped. Explain any additional assumptions you make in preparing your estimated mode year budgets. b. What will be the overhead allocation rate under the two scenarios? 6. Would you outsource manifolds from the ACF in 1991? Why, or why not? What more teaching would you want before reaching a final decision?