Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Question
Chapter 5, Problem 3MCQ
To determine
Identify the consumption ratio for the inspection activity for laser printer and inkjet printer.
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Your company management wants you to compare the list of materials for HML and ABC analysis.
For ABC classification they set the following criteria;
Items below SR 100000 annual consumption shall be considered as C-items,
items between SR 100000 and SR 150000 shall be considered as B-items,
and items above  SR 150000 shall be considered as A- items
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For HML classification they set the following criteria;
Items below unit price SR 50 shall be considered as L-items,
items between SR 50 and SR 100 unit price shall be considered as M-items, Â
and items above SR 100 unit price shall be considered as H-items.
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Based upon your analysis suggest which classification shall be better for the company so that inventory can be optimized. Justify your answer.
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Item
Consumption
(Units) Annual
Price/unit
SR
H/M/L
Consumption
(SR) Annual
A/B/C
A
2000
40
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B
3000
65
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C
2500
90…
The standard price and quantity of direct materials are separated because: (select one of the following)
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1) GAAP and IFRS reporting requires separation.
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2) Direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department.
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3) Standard prices are more difficult to estimate than standard quantities.
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4) Standard quantities change more frequently than standard prices.
Compute each of the following.1. The number of equivalent units for materials for the month.2. The number of equivalent units for conversion for the month.3. The variable cost per equivalent unit of materials for the month.4. The variable cost per equivalent unit for conversion for the month.5. The total variable cost of goods transferred out.6. The total variable cost of ending work in process inventory.
Please explain your work in detail and provide in-text citations. At least six (6) peer-reviewed references are required among which one should be the textbook as source of the data. Include the initial situation and the initial assumptions in your answer.
Chapter 5 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 5 - Describe the two-stage process associated with...Ch. 5 - Describe the two-stage process for departmental...Ch. 5 - What are nonunit-level overhead activities?...Ch. 5 - What is product diversity?Ch. 5 - What is an overhead consumption ratio?Ch. 5 - What is activity-based product costing?Ch. 5 - Prob. 7DQCh. 5 - Explain how costs are assigned to activities.Ch. 5 - Describe the value of activity-based customer...Ch. 5 - Explain how ABC can help a firm identify its true...
Ch. 5 - Prob. 11DQCh. 5 - What are value-added activities? Value-added...Ch. 5 - What are nonvalue-added activities? Nonvalue-added...Ch. 5 - Identify and define four different ways to manage...Ch. 5 - Prob. 15DQCh. 5 - A batch-level driver is consumed by a product each...Ch. 5 - Which of the following is a nonunit-level driver?...Ch. 5 - Prob. 3MCQCh. 5 - Use the following information for Multiple-Choice...Ch. 5 - The first stage of ABC entails the assignment of...Ch. 5 - The second stage of ABC entails the assignment of...Ch. 5 - Interview questions are asked to determine a. what...Ch. 5 - Prob. 8MCQCh. 5 - Assume that the moving activity has an expected...Ch. 5 - Which of the following is a true statement about...Ch. 5 - Prob. 11MCQCh. 5 - This year, Lambert Company will ship 1,500,000...Ch. 5 - Prob. 13MCQCh. 5 - A forklift and its driver used for moving...Ch. 5 - Which of the following are nonvalue-added...Ch. 5 - Suppose that a company is spending 60,000 per year...Ch. 5 - Prob. 17MCQCh. 5 - Thom Company produces 60 units in 10 hours. The...Ch. 5 - Thom Company produces 60 units in 10 hours. The...Ch. 5 - Striving to produce the same activity output with...Ch. 5 - Use the following information for Brief Exercises...Ch. 5 - Use the following information for Brief Exercises...Ch. 5 - Calculating ABC Unit Costs Perkins National Bank...Ch. 5 - Assigning Costs to Activities McCourt Company...Ch. 5 - Activity-Based Customer Costing Sleepeze Company...Ch. 5 - Activity-Based Supplier Costing Clearsound uses...Ch. 5 - Prob. 27BEACh. 5 - Velocity and Cycle Time Kolby Company takes 36,000...Ch. 5 - Use the following information for Brief Exercises...Ch. 5 - Use the following information for Brief Exercises...Ch. 5 - Prob. 31BEBCh. 5 - Assigning Costs to Activities Craig Company...Ch. 5 - Activity-Based Customer Costing Limpio Company...Ch. 5 - Activity-Based Supplier Costing Blackburn Inc....Ch. 5 - Nonvalue-Added Costs Evans Inc. has the following...Ch. 5 - Velocity and Cycle Time Tara Company takes 8,000...Ch. 5 - Consumption Ratios; Activity Rates Saludable...Ch. 5 - Activity Rates Patten Company uses activity-based...Ch. 5 - Comparing ABC and Plantwide Overhead Cost...Ch. 5 - Activity-Based Product Costing Suppose that a...Ch. 5 - Assigning Costs to Activities, Resource Drivers...Ch. 5 - Activity-Based Customer-Driven Costs Suppose that...Ch. 5 - Activity-Based Supplier Costing Bowman Company...Ch. 5 - Use the following information for Exercises 5-44...Ch. 5 - Use the following information for Exercises 5-44...Ch. 5 - Use the following information for Exercises 5-44...Ch. 5 - Cycle Time and Velocity In the first quarter of...Ch. 5 - Product-Costing Accuracy, Consumption Ratios Plata...Ch. 5 - Product-Costing Accuracy, Consumption Ratios,...Ch. 5 - Formation of an Activity Dictionary A hospital is...Ch. 5 - Activity Rates and Activity-Based Product Costing...Ch. 5 - Value- and Nonvalue-Added Costs Waterfun...Ch. 5 - Functional-Based versus Activity-Based Costing For...Ch. 5 - Plantwide versus Departmental Rates,...Ch. 5 - Production-Based Costing versus Activity-Based...Ch. 5 - Prob. 56PCh. 5 - Customers as a Cost Object Morrisom National Bank...Ch. 5 - Grundvig Manufacturing produces several types of...Ch. 5 - Activity-Based Supplier Costing Levy Inc....Ch. 5 - Danna Martin, president of Mays Electronics, was...Ch. 5 - John Thomas, vice president of Mallett Company (a...Ch. 5 - Cycle Time, Velocity, Product Costing Goldman...Ch. 5 - Prob. 63CCh. 5 - Consider the following conversation between...
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Using a physical measurement method, what amount of joint processing cost is allocated to Product B?
c. P1,311.00
d. P3,495.00
b. P2,447.00
a. P1,748.00
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c. P1,108.00
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Can you please help me solve all 5 parts of this question using the following using the images provided:Â
1. With respect to cost classifications for preparing financial statements:
a. What is the total product cost?
b. What is the total period cost?Â
2. With respect to cost classifications for assigning costs to cost objects:
a. What is total direct manufacturing cost?Â
b. What is the total indirect manufacturing cost?Â
3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost?Â
b. What is the total nonmanufacturing cost?Â
c. What is the total conversion cost and prime cost?Â
4. With respect to cost classifications for predicting cost behavior:
a. What is the total variable manufacturing cost?Â
b. What is the total fixed cost for the company as a whole?Â
c. What is the variable cost per unit produced and sold?Â
5. With respect to cost classifications for decision making:
a. If Dozier had produced 1,001 units instead of 1,000 units, how much…
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Using the conventional method I got the cost per unit for Product A: 54 GBP and Product B: 110 GBP and using the ABC principles I got the cost for Product A: 80 GBP and for Product B: 63 GBP.
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What are the causes for any differences in the cost based on obtained results?
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Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment? A. comparing contribution margins and fixed costs B. comparing contribution margins and variable costs C. comparing gross margin and variable costs D. comparing total contribution margin under each alternative
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Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving parts, moving parts, and setting up equipment. The activities, the activity drivers, the standard and actual quantities, and the price standards for 20x1 are as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: 1. Prepare a cost report that lists the value-added, non-value-added, and actual costs for each activity. 2. Which activities are non-value-added? Explain why. Also, explain why value-added activities can have non-value-added costs.
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Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points. 2. Determine the variable cost per unit and the total fixed cost from the information on the graph. 3. Determine the variable cost to be charged to the product for the year. 4. Determine the fixed cost to be charged to factory overhead for the year. 5. Do these answers agree with the answers to P4-2? Why or why not?
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If the beginning finished goods inventory (in units) and the desired finished goods ending inventory (in units) are the same, the required production in units will be: Select one: O a. Equal to unit sales plus beginning finished good inventory (in units) O b. Equal to unit sales plus beginning finished good inventory (in units) plus ending finished goods inventory (in units) O c Equal to unit sales O d. All of the given answers are correct
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Which three items must ALWAYS be the same number on a production cost report?
Group of answer choices
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Total column of the “Total costs, month of” row; Total column of the “Total Costs” row                 in the “Costs” section; and Total column of the “Total Costs” row in the “Cost                 Reconciliation” section.
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Total units in production, Total units under the “physical units” column, and Total units                   under the “materials – equivalent units” column.
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Unit costs for materials, labor, and manufacturing overhead.
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Ending WIP inventory amounts for materials, conversion costs, and total costs.
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Using the data in No. 9, what is the cost of the units issued under the FIFO costing method?
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2. Calculate the relative distribution percentages for each quality cost category. Round percentages to one decimal place if rounding is required. For example, 5.789% would be entered as "5.8".
Prevention
fill in the blank f53288f73071ff5_1
%
Appraisal
fill in the blank f53288f73071ff5_2
%
Internal failure
fill in the blank f53288f73071ff5_3
%
External failure
fill in the blank f53288f73071ff5_4
%
Comment on the distribution.Â
Quality Cost Report, Taguchi Loss Function
Kathy Shorts, president of Oliver Company, was concerned with the trend in sales and profitability. The company had been losing customers at an alarming rate. Furthermore, the company was barely breaking even. Investigation revealed that poor quality was at the root of the problem. At the end of 20x5, Kathy decided to begin a quality improvement program. As a first step, she identified the following costs in the accounting records as quality related:
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20x5
Sales (644,000 units @ $100)
$64,400,000…
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11. Which of the following material issue pricing method considers the prices as well as the quantities of materials purchased?
a.
Weighted average method
b.
FIFO method
c.
LIFO method
d.
Simple average method
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17 -
Which of the following is the cost method used by companies that produce different products in certain batches ?
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 a)
Normal cost method
 B)
Standard cost method
 NS)
Phase cost method
 D)
full cost method
 TO)
Order cost method
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