Managerial Accounting 8ed Chapter3

12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed on a per unit basis?

Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.

1) In this exercise, you viewed the settlement of costs to finished goods and manufactured output settlement. As noted in the exercise, each should be for $42,000.

* Calculated correctly—No. The correct calculation would equal what the material can be sold for at the current market value: 25,000 lbs x $9/per lb = $225,000

ACCT505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 yrs Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs $1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2000 hrs Earnings per hour for employees $12 Annual health benefits per employee $2,500

ished goods) during the period plus the equivalent units in the department’s ending work in

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

Accounting is a system of recording analysing and communicating financial information to permit informed judgement and a decision by the users of a financial statement. Accounting is important to City of Westminster College because it can help provide the college with the information they may need in the future. will help the college know what going in and out the college and ensure that they are not falling behind with their expenditure. In accounting, there are many factors that need to be considered, such as controlling and complying with the law,that will help the business build profit and expand. The following purposes will show why accounting in business is important.

Historic cost depreciation is being used which leads to skewed numbers that misrepresent how well a product line will continue to operate in the future due to understated replacement value of fixed assets.

The company officially reported $5,000 in direct labor and $900 in manufacturing overhead for the month of August 2014. Manufacturing overhead includes all costs indirectly associated with the final product. As a result, the total manufacturing costs add up to $9,400 after adding the Direct Materials cost. Lastly, the addition of the beginning work in process of $6,000 and the subtraction of the ending work in process of $1,000 resulted in a total cost of goods manufactured of $14,400 for the month of August 2014.

For instance, the concept of cost estimation which assists in estimating future expenditure as the expenditure depends on the cost of the respective activities can be applied in the setting of a budget which is simply an estimate and schedule of all costs required to be assigned to an activity. One can make an estimation of the resources required for an activity by applying the cost estimation techniques. Since there are limiting factors to each activity such as scarcity of resources for activities, the concept of constraints can be applied together with the concept of cost volume profit analysis to ensure that maximum benefits are driven from the scarce resources and the number of activities that are available. This facilitates the allocation of resources that most equitable and profitable. The theory of constraints is also applicable in the process of setting up budgets. In setting up budget one considers the amount of resources that are available and cannot therefore set a budget plan that exceeds the amount of resources that are available. This implies that the budget is constrained by the amount of

Assuming Top That uses the first-in, first-out (FIFO) method to account for inventories, the assignment of costs to units completed and transferred to the Sewing Department during February is

Managerial Accounting do practices on the limited resources not on the High level resources because its gave accurate information and by being getting well defined information market competitors are increases and its results on technology it would be also increase and from all above managerial accounting came directly proportional to the labor relations its means higher the labor relation advance innovation and great deal being with market

The material handling once per receipt of each unit of Valves = 0.03 X 120,000/7500 = $0.5

By: Charn Gek Cheng, Chiang Soo Ling, Kummar Sokali Muthu Mogan, Lee Siew Fen Samantha