MANAGERIAL ACCT.F/MANAGERS>CUSTOM<
4th Edition
ISBN: 9781307090147
Author: Noreen
Publisher: MCG/CREATE
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Chapter 4A, Problem 4A.5P
1.
To determine
Introduction:
To compute: The predetermined overhead rate using direct labor hours as the allocation based and unit product cost of each model.
2.
To determine
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption
To compute: The predetermined overhead rate for each four activity cost pools
3.
To determine
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption
To compute: Total amount of
4.
To determine
Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption
The factors that may account for the company’s declining profit.
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Problem 4-15 (Algo) Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4]
Marine, Incorporated, manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model, the company’s profits have steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the flexible model have been increasing rapidly.
Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $741,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model and 9,000 units of the regular model. The flexible model requires 3.0 hours of direct labor time per unit, and the regular model requires 1.50 hours. Direct materials and labor costs per unit are…
QUESTION 9
QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:
Alternative A
Alternative B
Projected revenue
$
62,500
$
75,000
Unit-level costs
12,500
18,000
Batch-level costs
6,250
12,000
Product-level costs
7,500
8,500
Facility-level costs
5,000
6,250
What is the differential revenue for this decision?
$62,500
$25,000
$75,000
$12,500
QUESTION 4 (TOPIC 8)
Nuraz Sdn Bhd (NSB) manufactures modern vase in northern areas and the price per unit is RM50. Currently, company uses absorption costing and the owner is considering to change the reporting method to variable costing. Thus, he asked the accountant to show the difference in income using both methods. To do so, the accountant rely on the information below:
Production
70,000 units
Beginning finished goods inventory
17,500 units
Sales
RM3,125,000
Direct materials
RM840,000
Direct labor
RM630,000
Variable manufacturing overhead
RM280,000
Variable selling and administrative expenses
RM700,000
Fixed manufacturing overhead
RM350,000
Fixed selling and administrative
RM700,000
REQUIRED:
1. Calculate ending finished goods inventory (in RM) using:
Absorption costing.
Variable costing.
2. Without preparing income statement, calculate the different in income reported under absorption costing and variable…
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