Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing handling activity. The shipping and handling activity has an activity rate of $7 per pound. A box of gla china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $ 14 ✓ Fine China $ Everyday dinnerware b Determine the total shipping and receiving costs to be allocated to the fine china if 3,700 boxes are

Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing handling activity. The shipping and handling activity has an activity rate of $7 per pound. A box of gla china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $ 14 ✓ Fine China $ Everyday dinnerware b Determine the total shipping and receiving costs to be allocated to the fine china if 3,700 boxes are

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...

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Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $5 per pound. A box of glasses weighs 2 lbs, the box of china weighs 4 lbs, and a box of everyday dinnerware weighs 6 lbs. Round answers to nearest whole dollar. a Determine the shipping and handling activity for each product. Glasses $fill in the blank 1 China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs for the china if 2,000 boxes are shipped.$fill in the blank 4
XYZ Ltd produce a mini-kitchen called Tiny Tots, which is enjoying extensive popularity amongst young children. The following data is available for the month of March 2018:Selling price (per unit) R 116 Units in opening inventory 600Units manufactured 2 550Units sold 3 050Variable costs per unit:Direct materials R12,00 Direct Labour R50,00Variable manufacturing overhead R6,50Variable selling and administrative R10,00Fixed costs:Fixed manufacturing overhead R81 000Fixed selling and administrative R14 000 The company produces the same number of units every month, although the sales in units vary from month to month. The company’s variable costs per unit and total fixed costs have been constant from month to month.Required:4.1. Prepare an income statement for the month using the variable costing method. (10)4.2. Prepare an income statement for the month using the absorption costing method. (10)
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $8 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 6,300 boxes are shipped.$fill in the blank 4
Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.
Question Content Area Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Product Amount Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 5,700 boxes are shipped.fill in the blank 1 of 1$
Cost Accounting_ADM3346 CAPSTONE EXERCISE Chapter 18 Toddler Toys produces toy construction vehicles for young children. Plastic pieces are moulded in the plastics department. The pieces are transferred to the assembly department, where direct materials are added after some assembly has been done. For example, plastic pieces of road graders are put together, then the blades and wheel assemblies are added, and finally some details are painted on the sides and back. The direct materials are added in the assembly department when the process is 75% complete. Beginning inventory 80% complete and ending inventory is 25% complete. Following are data for August: Beginning inventory costs for the assembly department: Transferred in $4,000 Direct materials 2,000 Conversion costs 1,600 Total cost $7,600 Costs incurred in the assembly department during current period: Transferred in $36,000 Direct materials 18,000 Conversion costs 16,000 Total cost $70,000 Physical units in the assembly…
a manufacturer makes two products, windows and doors. Each must be processed through two work areas. Work are #1 has 50 hours of available production time. Work area #2 has 60 hours of available production time. Manufacturing of a window requires 3 hours in work area #1 and 2 hours in work area #2. Manufacturing of a door requires 1 hours in work area #1 and 4 hours in work area #2. Profit is $6 per door and $9 per window. make a table to show the points to make your constraint lines and test points for optimal profit
MANAGEMENT ACCOUNTING & CONTROL STANDARD COSTS AND VARIANCE ANALYSIS LEARNING ACTIVITY 1 Torres Company has established standard costs for the cabinet department, in which one size of MX cabinet is made. The standard costs of producing one of these MX cabinets are shown below: Standard Cost Card – MX Cabinet Direct Material: Lumber 50 board ft at P 4 200 Direct Labor: 8 hours at P 10 80 Overhead Costs: Variable – 8 hrs at P5 40 Fixed – 8 hrs at P3 24 Total Standard Unit Cost 344 During June 2018, 500 of these cabinets were produced. The cost of operations during the month are shown below. There is no work in process at the beginning and end of the month. Direct material purchased: 30,000 bf at P4.10 123,000 Direct materials used: 24,000 board ft Direct labor: 4,200 hrs at P9.50 39,900 Overhead Costs : Variable Costs 22,000 Fixed Costs 11,000…
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $13 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Product Amount Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 1,900 boxes are shipped.fill in the blank 1 of 1$
LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2. You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets. Sales Budget The sales budget often uses the prior year’s sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions.…
Monoblocs, Inc. manufactures set-it-up-yourself furniture for students. He currently makes two products, bookcases and tables. Each bookcase contributes P240 to profits and each table, P200. Each product passes through two manufacturing departments, cutting and finishing. Bookcases take 4 hrs a unit in cutting and 4 in finishing. Table require 3 hours a unit in cutting and 5 in finishing. There are currently 40 hrs available in cutting and 30 in finishing. Find the product mix that will produce the maximum profit.
Problem 2. A small woodworking shop makes hand carved tables and chairs. Each product goes through two stages of production. Stage 1, the assembly stage, has 60 minutes available per shift. The second stage, finishing and painting, has 40 minutes available per shift. Each table requires 12 minutes of assembly time and 4 minutes of painting and finishing time. Each chair requires 4 minutes of assembly time and 8 minutes of finishing and painting time. Profit per table is $100, while profit per chair is $60. Write the complete mathematical model for this problem.