Calculating Cost

Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company’s products follows.

	Standard:	Enhanced:
Estimated production volume	3,000 units	4,000 units
Direct-material cost	$25 per unit	$40 per unit
Direct labor per unit	3 hours at $12 per hour	4 hours at $12 per hour

Ontario’s overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively.

Data relevant to these activities follow:

	Orders Processed	Machine Hours Worked	Inspection Hours
Standard	300	18,000	2,000
Enhanced	200	22,000	8,000
Total	500	40,000	10,000

Top management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed—machinery that was expected to produce significant operating efficiencies.

Calculations, complete the following:

• Use of direct-labor hours to apply overhead to production, calculate the unit manufacturing costs of the standard and enhanced products if the expected manufacturing volume is attained.
• Use of activity-based costing, calculate the unit manufacturing cost of the standard and enhanced products if the expected manufacturing volume is attained.
• Ontario’s selling price is based heavily on cost:
  • Calculate which product is over cost and which is under cost by using direct-labor hours as an application base.
  • Explain if it is possible that this over costing and under costing is responsible for the profit issues the company is facing.
• Illustrate how the solution will change if the following data changes:
  • The overhead associated with order processing is $300,000 and the overhead associated with product inspection is $270,000.

Discuss two of the following statements.

1. Discuss the differences between integrative and distributive bargaining and the conditions in which either or both are used in the negotiation process.
2. Describe Thompson’s Pyramid Model and its relationship to parties in bargaining situations, and why it is useful to the integrative bargaining process.
3. Discuss the advantages and disadvantages of the Categorization and Interest-Based Bargaining (IBB) Methods and which method you would be more likely to use in a negotiating situation and why.
4. Discuss the purpose that Full, Open-Throttle Negotiations (FOTN) serves in bargaining; why recognition of establishing value for the long-term relationship is a positive approach to beginning the negotiations process; and asking circular questions and packaging issues are helpful in the negotiations.
5. Explain why Mary Parker Follet’s example of two sisters cutting an orange in half is a classic model of poor integrative negotiations.

Guided Response: Respond to at least two of your classmates’ postings.  Try to respond to students who pick different statements.

Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread.

Respond

I wanna 3 to 4 research essay about the advantages and disadvantages of globlaization. useing the articles I have attached only! its due after 4 hourse and a half.

In about 4 months, you will be graduating from the police academy. Your friend, Jim, works at the same precinct to which you are applying. You know that upon your employment with the law enforcement agency, you may be required to take a polygraph test with questions about prior arrests, drug use, or theft—any questions that could disqualify you as a police officer. Your friend tells you to lie on the questionnaire and not to include information from your old college days when you both were arrested for marijuana possession. Although the case was dismissed, it still is in the court system. Jim stated that his district does not employ the polygraph; it just has a questionnaire. Jim admitted to lying on his questionnaire to seek his employment.

• Are ethics limited to duty, or does it extend to personal desires? 
• What are the implications of lying on a questionnaire even though the department may not find out the truth? 
• What would you gain if the truth was told?
• If you do tell the truth, would you include the information regarding your friend, explaining that you and your friend were arrested?
• Discuss the implications of including your arrest and the implications for including your friend. Use theoretical concepts associated with ethics to help you determine the consequences (good or bad) associated with immoral behaviors and how you formulate your decision.

4 paragraphs and no more then 25% plaigiarism.