FINANCIAL+MANG.-W/ACCESS PRACTICE SET
13th Edition
ISBN: 9781337575614
Author: WARREN
Publisher: CENGAGE L
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Question
Chapter 27, Problem 27.4CP
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 activities of Company P.
b)
To determine
To Prepare: The Value Added/ Non-Value Added Analysis for Company P for activities.
c)
To determine
To Interpret: The Value Added/ Non-Value Added Analysis for activities of Company P.
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Bennette Corporation has provided the following data concerning its overhead costs for the coming year:
Wages and salaries
$ 450,000
Depreciation
175,000
Rent
195,000
Total
$ 820,000
The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:
Activity Cost Pool
Total Activity
Assembly
35,000
labor-hours
Order processing
450
orders
Other
Not applicable
The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs.
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Total
Assembly
Order Processing
Other
Wages and salaries
30%
25%
45%
100%
Depreciation
15%
45%
40%
100%
Rent
35%
30%
35%
100%
The activity rate for the Order Processing activity cost pool is closest to:
Multiple…
Factory overhead cost and production data for a firm for a year were as follows:
Variable Cost
Fixed Cost
Machine Hours
$
$
Actual
90,000
205,000
20,000
Budget
95,000
190,000
19,000
Factory overhead is recovered from production using machine hours as the cost driver.
REQUIRED:
(a) Calculate the factory overhead recovery rate.
(b) Determine the amount of over or under-applied overhead. Your answer must clearly state whether the calculated amount is over or under-applied.
(c) Analyse over/under applied overhead into a spending variance and a capacity variance.
Suzanne Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one
indirect-cost pool, manufacturing overhead costs.
View the manufacturing overhead costs information for 2020.
Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.)
Budgeted indirect cost
rate
28
Budgeted manufacturing overhead costs
$
784,000
$
Actual indirect costs incurred
1,134,000
The manufacturing overhead allocated during the year is
$
Identify the formula and calculate the underallocated or overallocated manufacturing overhead. (Use parentheses or a minus sign to report overhead overallocated.)
Underallocated (overallocated)
indirect costs
378,000
Account
Work-in-process control
Finished goods control
Cost of goods sold
Total
Account
Balance
(Before
Proration)
$
$
$
$
Budgeted labor hours…
Chapter 27 Solutions
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
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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