Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: Date Job No. Product Quantity Amount Jan. 2 TT 520 $16,120 1 Jan. 15 22 1,610 20,125 Feb. 3 30 SS 1,420 25,560 Mar. 7 41 TT 670 15,075 Mar. 24 49 SLK 2.210 22,100 May 19 58 SLK 2.550 31.875 June 12 65 TT 620 10,540 Aug. 18 78 SLK 3.110 48,205 Sept. 2 82 1,210 16,940 Nov. 14 92 TT 750 8,250 Dec. 12 98 SLK 2,700 52,650 a. On your own paper, develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent. Job No. Unit Cost 22 30 41 49 58 65 78 82 92 98 b. Where is the best place to look to investigate Alvarez Manufacturing's cost performance more precisely?

Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: Date Job No. Product Quantity Amount Jan. 2 TT 520 $16,120 1 Jan. 15 22 1,610 20,125 Feb. 3 30 SS 1,420 25,560 Mar. 7 41 TT 670 15,075 Mar. 24 49 SLK 2.210 22,100 May 19 58 SLK 2.550 31.875 June 12 65 TT 620 10,540 Aug. 18 78 SLK 3.110 48,205 Sept. 2 82 1,210 16,940 Nov. 14 92 TT 750 8,250 Dec. 12 98 SLK 2,700 52,650 a. On your own paper, develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent. Job No. Unit Cost 22 30 41 49 58 65 78 82 92 98 b. Where is the best place to look to investigate Alvarez Manufacturing's cost performance more precisely?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 2MAD: Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost...

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Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountants before making any allocations: The total cost of purchasing and receiving parts used in manufacturing is 60,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were 48,000 and 12,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
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