Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Computer Science Posted 16 Jul 2017 My Price 8.00

coefficients for Aqua-Spas

Howie Jones used the following information to calculate the profit coefficients for Aqua-Spas and Hydro-Luxes: pumps cost $225 each, labor costs $12 per hour, and tubing costs $2 per foot. In addition to pumps, labor, and tubing, the production of Aqua-Spas and Hydro-Luxes consumes, respectively, $243 and $246 per unit in other resources that are not in short supply. Using this information, Howie calculated the marginal profits on Aqua-Spas and Hydro-Luxes as shown in the following table.

Howie’s accountant reviewed these calculations and thinks Howie made a mistake. For accounting purposes, factory overhead is assigned to products at a rate of $16 per labor hour. Howie’s accountant argues that because Aqua-Spas require nine labor hours, the profit margin on this product should be $144 less. Similarly, because Hydro-Luxes require six labor hours, the profit margin on this product should be $96 less. Who is right and why?

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Maurice Tutor
(5)
Status NEW Posted 16 Jul 2017 05:07 PM My Price 8.00

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