MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Question
Chapter 5A, Problem 5A.3E
1.
To determine
Introduction:
To compute: The cost per minute of the resource supplied in the shipping department, time driven activity rate for all three activities, and the total labor cost consumed by customers L, M, and N.
2.
To determine
Introduction: Job costing is a technique of determining the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order and is determined as predetermined overhead.
To compute: The used capacity in minutes, unused capacity in minutes, unused capacity in the number of employees, impact on expenses of matching capacity with demand.
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Students have asked these similar questions
Consider a company facing a demand pattern and costs as follows:
Sequential Requirements
Number
(units)
1
20
2
40
3
110
4
120
60
30
20
30
80
120
130
40
800
Month
January
February
March
April
May
June
July
August
September
October
November
December
At
ht
5
6
7
8
9
10
11
12
Total
$25.00
$ 0.20
a. Construct a replenishment schedule and calculate the associated costs using the Lot for
Lot method.
b. Repeat using the Fixed Economic Order Quantity method.
c. Repeat using the Periodic Order Quantity method.
d. Repeat using the Wagner-Whitin Algorithm. (Note: Students are required to solve this
An allocation base:
a.
can be units of output if the company has a single
product
O b. is determined before the period begins.
O c. All the given answers are correct.
O d. can be direct labor cost
e. is a measure used to assign manufacturing overhead
costs to products and services
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IZ TWO
Jump CQURSE OUTLINE_SPRING2021 ►
tv
MacBook Air
ABSORPTION COSTING VERSUS THROUGHPUT COSTING
The book The Goal illustrates the concept of throughput costing. For the problem below
prepare all journal entries and determine the impact on the income statement of the
differences between absorption costing (normal accounting) and throughput costing.
HINT: pay very careful attention to definitions of throughput, inventory and operating
expense from the book
BUDGETED MANUFACTURING COSTS
DIRECT MATERIAL
$20
PER UNIT
DIRECT LABOR
$2
PER UNIT
VARIABLE OVERHEAD
$10
PER UNIT
FIXED OVERHEAD
$150,000
YEAR 1
NO BEGINNING INVENTORY
ACTUAL COSTS OF PRODUCTION EQUALS ABOVE MANUFACTURING COSTS
PURCHASE DIRECT MATERAILS OF
$200,000
INCUR SELLING AND ADMIN COSTS OF
$80,000
#UNITS PRODUCED
10,000
# UNITS SOLD
9,000
SALES PRICE OF UNITS SOLD
$100
YEAR 2
THERE…
Chapter 5A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
Knowledge Booster
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