Bmgt 321 Chapter 5 Homework

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BMGT 321 Chapter 5 Homework Click Link Below To Buy: ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT 5-16 (20 min.) Cost hierarchy. Forrester, Inc., manufactures karaoke machines for several well-known companies. The machines differ significantly in their complexity and their manufacturing batch sizes. The following costs were incurred in 2014: a. Indirect manufacturing labor costs such as supervision that supports direct manufacturing labor, $825,000 b. Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the number of purchase orders placed, $525,000 c. Cost of indirect materials, $160,000 d. Costs incurred…show more content…
WG charges clients for (a) direct professional time (at an hourly rate) and (b) support services (at 30% of the direct professional costs billed). The three professionals in WG and their rates per professional hour are as follows: WG has just prepared the May 2014 bills for two clients. The hours of professional time spent on each client are as follows: Required: 1. What amounts did WG bill to San Antonio Dominion and Amsterdam Enterprises for May 2014? 2. Suppose support services were billed at $75 per professional labor-hour (instead of 30% of professional labor costs). How would this change affect the amounts WG billed to the two clients for May 2014? Comment on the differences between the amounts billed in requirements 1 and 2. 3. How would you determine whether professional labor costs or professional labor-hours is the more appropriate allocation base for WG’s support services? 5-21 (10–15 min.) ABC, process costing. Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Total manufacturing overhead costs are as follows: Required: 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Parker’s managers use the new cost information from its

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