Questions from Engineering


Q: The cost for a 200-horsepower pump with a VFD controller

The cost for a 200-horsepower pump with a VFD controller is $42,000. The cost estimate of a similar pump of 300 horsepower capacity, provided the exponent in the cost-capacity equation is 0.64, is clo...

See Answer

Q: The cost of an electrode position control system in an electric arc

The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1192. If the current index value is 1364 and the exponen...

See Answer

Q: If the cost of an imported high-speed assemblyline robot is

If the cost of an imported high-speed assemblyline robot is $80,000 and the in-country cost for one with twice the capacity is $120,000, the value of the exponent in the cost-capacity equation is clos...

See Answer

Q: The delivered equipment cost for setting up a production and assembly line

The delivered equipment cost for setting up a production and assembly line for high-sensitivity, gas-damped accelerometers is $650,000. If the direct cost and indirect cost factors are 1.36 and 0.31,...

See Answer

Q: The equipment for applying specialty coatings that provide a high angle of

The equipment for applying specialty coatings that provide a high angle of skid for the paperboard and corrugated box industries has a delivered cost of $390,000. If the overall cost factor for the co...

See Answer

Q: The IT department allocates indirect costs to user departments on the basis

The IT department allocates indirect costs to user departments on the basis of CPU time at the rate of $2000 per second. For the first quarter, the two heaviest use departments logged 900 and 1300 sec...

See Answer

Q: If a hospital cafeteria is the activity to receive indirect cost allocation

If a hospital cafeteria is the activity to receive indirect cost allocation for the year, cost driver(s) for the ABC method that seem reasonable may be: 1 – Number of cafeteria employees 2 – Number of...

See Answer

Q: The delivered equipment cost for setting up a production and assembly line

The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, a...

See Answer

Q: If the efficiency of the sludge recirculation pump were reduced from 90

If the efficiency of the sludge recirculation pump were reduced from 90% to 70%, would the net savings difference between alternatives 3 and 4 increase, decrease, or stay the same?

See Answer

Q: A possible disadvantage of the ABC method is: (a

A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production work occurs (b) It is more expensive to operate than a traditional allocation system (c) It does not...

See Answer