Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134642093
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 3, Problem 10QC
To determine
To identify: Find out the true statement from the given options
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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 )
Calculate a job cost using ABC (Learning Objective 2)Oliver Industries, a small, family-run manufacturer, has adopted an ABC system . The fol- lowing manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year :54-7Direct materials ................................................................................ ? Direct labor ...................................................................................... ? Manufacturing overhead ...... .......... .......... ............. ................. .......... ? Total job cost .................................................................................... $?Classifying costs within the cost hierarchy (Learning Objective 2) Classify each of the following costs as either unit-level, batch-level, product-level, orfacility-level.a. Engineering costs for new productb. Order processingc. Depreciation on factoryd. Direct labore. Shipment of an order to a customerf. Product line manager…
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.
1. Which of the following manufacturers is most likely to use a process cost system?
Purse manufacturer
Sports drink manufacturer
Automobile manufacturer
Guitar manufacturer
2. Process and job order cost systems are similar in that both systems _______.
record and summarize product costs
classify product costs as direct materials, direct labor, and factory overhead
allocate factory overhead costs to products
All of these choices are correct.
Chapter 3 Solutions
Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QCCh. 3 - Prob. 9QCCh. 3 - Prob. 10QC
Ch. 3 - Identify product costs, period costs, and product...Ch. 3 - Decide on product costing system (Learning...Ch. 3 - Determine the flow of costs between inventory...Ch. 3 - Understanding key document terms in a job cost...Ch. 3 - Compute a professional billing rate (Learning...Ch. 3 - Prob. 3.6SECh. 3 - Continuation of S3-6: compute total allocated...Ch. 3 - Continuation of S3-7: determine over- or under...Ch. 3 - Prob. 3.9SECh. 3 - Calculate job cost and billing at appliance repair...Ch. 3 - Calculating overallocated or underallocated...Ch. 3 - Prob. 3.12SECh. 3 - Record manufacturing labor costs (Learning...Ch. 3 - Prob. 3.14SECh. 3 - Prob. 3.15SECh. 3 - Understanding key terms (Learning Objectives 1, 2,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Prob. 3.18AECh. 3 - Determine the cost of a job and use it for pricing...Ch. 3 - Compute a predetermined overhead rate and...Ch. 3 - Prob. 3.21AECh. 3 - Prob. 3.22AECh. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Job cost and bid price at a consulting firm...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Understand the flow of costs in a job cost shop...Ch. 3 - Prob. 3.33BECh. 3 - Prob. 3.34BECh. 3 - Prob. 3.35BECh. 3 - Sustainability and job costing (Learning...Ch. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Prob. 3.43BECh. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Job costing or process costing for wedding...Ch. 3 - Discussion Questions 1. Why would it be...Ch. 3 - Unwrapped or How Its Made Go to www.YouTube.com...Ch. 3 - Ethics involved with choice of cost driver...Ch. 3 - Prob. 3.61ACTCh. 3 - Issues with cost of job (Learning Objectives 2, 3,...
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- I have the following information: direct materials $250 and total manufacturing cost $700. Overhead applied to jobs at a rate of 200% of direct labor cost. This is for Chapter 2 job costing in managerial accounting. I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead. I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information? The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor. Can you please help? Thanks, Erica Gordonarrow_forwardWhat type of cost accounting system would be most appropriate to be used by a graduation invitation printing company? Group of answer choices Not enough information to determine Preplacement cost system Process cost system Job order cost systemarrow_forwardThe accompanying figures depict a number of cost behavior patterns that might be found in a company's cost structure. The vertical axis on each graph represents total cost, and the horizontal axis on each graph represents level of activity (volume). For each of the given situations, identify the graph that illustrates the cost pattern involved. Any graph may be used more than once. (Adapted originally from the CPA exam; also found in R.H. Garrison and E.W. Noreen, Managerial Acco11111ing, 9th edition, Irwin, 2009.)(a) Electricity bill-a flat-rate fixed charge plus a variable cost after a certainnumber of kilowatt-hours are used.(b) City water bill, which is computed as follows:First 1,000,000 gallons $1,000 flat, or lessNext 10,000 gallons $0.003 per gallon usedNext 10,000 gallons $0.006 per gallon usedNext 10,000 gallons $0.009 per gallon used(c) Depreciation of equipment, where the amount is computed…arrow_forward
- Please create a study/cheat sheet on these concepts in managerial accounting: 1. Managerial Accounting Concepts and Cost Flows 2. Cost Accounting Systems: Job Order Costing 3. Cost Accounting Systems: Process Costing 4. Activity-Based Costing Just include formulas and include when to use them (what types of problems). Also any rules.arrow_forwardClick to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. The journal entry to recognize depreciation on machinery is ________. a debit to Factory Overhead and a credit to Accumulated Depreciation a debit to Accumulated Depreciation and a credit to Factory Overhead a debit to Factory Overhead and a credit to Depreciation Expense a debit to Depreciation Expense and a credit to Factory Overhead 2. Process and job order cost systems are similar in ________ manner. recording and summarizing product costs classifying product costs as direct materials, direct labor, and factory overhead allocating factory overhead costs to products All of these choices are correct.arrow_forwardPlease read Chapter 2 and then answer the following question Describe how a job order cost system can be used for professional service businesses.arrow_forward
- How do companies figure out past costs and the learning phenomenon that applies to them or if they will need to up the costs compared to the last product?arrow_forwardWalsh & Coggins, a professional accounting firm, collects cost information about the services they provide to their clients. Describe the types of cost data they would collect and explain the importance of analyzing this cost data.arrow_forwardWhat are the major differences between job-order costing and process costing systems? Give an example of a well-known company that might use job costing, and an example of a well-known company that might use process costing. Explain why you have chosen the companies that you did, and do not choose companies upon which your classmates have already commented. Participate in follow-up discussion by commenting on your classmates’ choices of companies.arrow_forward
- We have seen how cost and volume assumptions affect net income. A common application of CVP analysis is a tool to forecast sales, costs, and income. Assume that you are actively searching for a job. Identify and discuss three assumptions relating to your expected revenue (salary), and three assumptions related to your expected costs (expenses) for the first year on the job.arrow_forwardClick to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. The first step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed units 2. The last step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed unitsarrow_forwardWe have seen how cost and volume assumptions affect net income. A common application of CVP analysis is a tool to forecast sales, costs, and income. Assume that you are actively searching for a job. Identify and discuss three assumptions relating to your expected revenue (salary), and three assumptions related to your expected costs (expenses) for the first year of your new job.arrow_forward
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