Marketing and Overhead Allocation Rate

Brid build upon Assignment 1. The command processing disk overhead time allocation send used in the 1987 pretense twelvemonth strategy study at the automotive Component & Fabrication Plant (ACF) was 435% of prep atomic number 18 labor dollar cost. Calculate the overhead allocation rate using the 1987 manikin form budget. Why do you get different numbers? 2. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the castrates since 1987 in overhead allocation rates meaning(a)? Why have these changes occurred? 3. Consider devil growths in the same product aviation Product 1 Product 2Expected sell Price $62 $54 measuring stick Material Cost 16 27 Standard Labor Cost 6 3 Calculate the expected primitive margins as a percentage of change price on each product based on the 1988 and 1990 model year budgets, assuming selling price and somatic and labor cost do not change from standard. 4. Are the product cost reported by the cost dust app ropriate for use in the strategic analysis? 5. Assume that the selling prices, volumes, and solid costs for the 1991 model year volition 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. apologize any additional assumptions you make in preparing your estimated mode year budgets. b. What will be the overhead allocation rate under(a) the two scenarios? 6. Would you outsource manifolds from the ACF in 1991? Why, or why not? What more learning would you want before reaching a final decision?