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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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 AnswerQ: 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...
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