Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
13th Edition
ISBN: 9781305781429
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 27, Problem 27.18EX
a)
To determine
Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.
To Identify: The cost of quality classification for each activity.
b)
To determine
To Prepare: The cost of quality report for Company S, given the sales for the period was $4,000,000(Round percentages to one decimal place).
c)
To determine
To Interpret: The Cost of Quality Report of Company S.
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Method of Least Squares, Developing and Using the Cost Formula
The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received:
Intercept
175,600
Slope
455
The cost driver used was number of parts inspected.
Required:
1. What is the cost formula?
Total cost of receiving = $ + ( $ × )
2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month.
Independent variable
Dependent variable
Variable rate per professional hour
per part inspected
Fixed cost per month
3. Using the cost formula, predict the cost of receiving for a month in which 7,200 parts are inspected.
Total cost of receiving = $
Method of Least Squares, Developing and Using the Cost Formula
The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received:
Intercept
147,400
Slope
210
The cost driver used was number of parts inspected.
Required:
1. What is the cost formula?
Total cost of receiving = $ + ( $ × )
2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month.
Independent variable
Dependent variable
Variable rate per professional hour
per part inspected
Fixed cost per month
3. Using the cost formula, predict the cost of receiving for a month in which 6,800 parts are inspected.
Total cost of receiving = $
Identifying the Parts of the Cost Formula;…
Apply the Concepts, Cost Reporting
Medco Inc., a manufacturing firm, has four activities: purchasing materials, molding, inspecting molds, and grinding imperfect molds. Purchasing
materials and molding are necessary activities; inspection and grinding are unnecessary. SQ provides the value-added quantity for each activity; AQ is
the actual activity output. The following data pertain to the four activities for the year ending (actual price per unit of the activity driver is assumed to
be equal to the standard price):
Activity Activity Driver
Purchasing Purchasing hours
Molding
Inspecting Inspection hours
Molding hours
Grinding. Number of units
Required:
SQ AQ SP
28,000 34,000 $20
42,000 47,600 121
0 8,400 15
0 6,000
6
1. Prepare a cost report for the year 1 ended that shows value-added costs, non-value-added costs, and total costs for each activity by completing
the following table:
Value-and Non-Value-Added Cost Report for the Year 1 Ended
Activity
Value-Added
Costs
Non-Value-Added…
Chapter 27 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Why is the direct labor cost category eliminated...
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 27.1APECh. 27 - Prob. 27.1BPECh. 27 - Prob. 27.2APECh. 27 - Lean features Which of the following are features...Ch. 27 - Lean accounting The annual budgeted conversion...Ch. 27 - Prob. 27.3BPECh. 27 - Prob. 27.4APECh. 27 - Prob. 27.4BPECh. 27 - Process activity analysis Lexter Company incurred...Ch. 27 - Prob. 27.5BPECh. 27 - Prob. 27.1EXCh. 27 - Prob. 27.2EXCh. 27 - Lean principles Active Apparel Company...Ch. 27 - Lead time analysis Palm Pals Inc. manufactures toy...Ch. 27 - Reduce setup time Hammond Inc. has analyzed the...Ch. 27 - Calculate lead time Flint Fabricators Int....Ch. 27 - Calculate lead time Williams Optical Inc. is...Ch. 27 - Prob. 27.8EXCh. 27 - Prob. 27.9EXCh. 27 - Prob. 27.10EXCh. 27 - Prob. 27.11EXCh. 27 - Lean principles for a restaurant The management of...Ch. 27 - Prob. 27.13EXCh. 27 - Prob. 27.14EXCh. 27 - Prob. 27.15EXCh. 27 - Prob. 27.16EXCh. 27 - Prob. 27.17EXCh. 27 - Prob. 27.18EXCh. 27 - Prob. 27.19EXCh. 27 - Prob. 27.20EXCh. 27 - Process activity analysis The Brite Beverage...Ch. 27 - Prob. 27.22EXCh. 27 - Prob. 27.23EXCh. 27 - Prob. 27.1APRCh. 27 - Lead time Sound Tek Inc. manufactures electronic...Ch. 27 - Lean accounting Formula One Displays Inc....Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1BPRCh. 27 - Lead time Master Chef Appliance Company...Ch. 27 - Lean accounting Com-Tel Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1CPCh. 27 - Prob. 27.2CPCh. 27 - Prob. 27.3CPCh. 27 - Prob. 27.4CP
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