MyLab Accounting with Pearson eText -- Access Card -- for Managerial Accounting (My Accounting Lab)
5th Edition
ISBN: 9780134161648
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.42BE
Recognize advantages and disadvantages of standard cost and
The following scenarios describe situations currently facing companies. For each scenario, indicate whether or not a
- a. Management wants to design an incentive system that would pay out monthly incentives to factory workers if certain cost and time standards are achieved (or beaten). The goal of this program would be to increase employee motivation levels.
- b. The company has recently begun manufacturing a new type of computer chip. The company has very little experience with this type of product or with the manufacturing process used for manufacturing the chips. Managers want to be able to have cost benchmarks so that they can judge whether the actual costs are reasonable for this product.
- c. An exercise equipment manufacturer has recently installed a robotic manufacturing system. This robotic system will be used for most of the welding, painting, assembly, and testing processes in its facility. The workers who used to do these tasks (welding, painting, assembly, and testing) will be retrained and will instead oversee various production lines rather than working directly on the products.
- d. Lean practices are being implemented throughout the organization at all levels and in all departments. One of the goals of the lean movement is to eliminate inventories if at all possible. Another goal is to strive for continuous improvement in both the time spent in the manufacturing process and the amount of materials used in the product.
- e. The company has started using several real-time operating performance metrics to manage operations. Examples of metrics being used include manufacturing lead time in days, manufacturing volume by day, downtime in hours, material cost by day, and several other measures. These performance metrics are available to management in a dashboard that is updated hourly.
- f. As the company grows, the bookkeeping for actual direct material purchases, actual payroll costs, and actual manufacturing overhead is becoming increasingly complex; the number of transactions to be recorded has significantly increased. Much time is being spent by both
managers and accountants in the company recording all of the actual transaction data. - g. A rare and expensive chemical is used in the production of the company’s main product. The cost of this material fluctuates wildly on a day-to-day basis, depending on market conditions. In addition, company engineers are continually working to redesign the product to use less of this material. Small incremental decreases in the material usage are being achieved on an ongoing basis.
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A firm has recently added a new product to their offerings. Manufacturing reports that production is going smoothly and factory workers are becoming familiar with the manufacture of this product. All expectations are that the current rate of learning will continue and the manufacture of future units will be more efficient (i.e., take less time). The following shown table shows the results for the first two units produced. The firm has an order for two additional units. Assuming the pattern of learning curve continues (same rate): Solve, a. At what rate is learning occurring? b. How long will it take to produce the fourth unit? c. If the labor rate is $15 per hour, what is the cumulative average labor cost per unit for the first four units produced?
Learning Outcomes Addressed:
This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline:
1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions
2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products.
requirement:
kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )
Chapter 11 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Managerial Accounting (My Accounting Lab)
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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