Thursday, December 13, 2018
'Managerial Accounting Notes\r'
' bill chapter 7 managerial accounting Exercises Lambert Fabrication, Inc. , uses operation-based be data for internal decisions. The company has the following four operation expenditure pools: bodily function damage PoolAnnual performance Producing building blocks5,000 machine-hours bear on modulates1,000 orders Customer support200 customers another(prenominal)Not relevant The ââ¬Å"Otherââ¬Â activity cost pool consists of the costs of idle dexterity and organization-sustaining costs. The company traces the costs of direct materials and direct projection to jobs (i. . , orders). Overhead costsââ¬both manufacturing and non-manufacturingââ¬are allocated to jobs use the activity-based costing system. These overhead costs are listed to a lower place: Indirect factory contend$100,000 Other manufacturing overheadS200,000 marketing and administrative expense$400,000 To develop the companys activity-based costing system, employees were asked how they distributed their period and resources across the four activity cost pools. The results of those interviews emerge below: Results of Interviews of EmployeesDistribution of Resource Consumption Across Activities Producing Processing Customer UnitsOrdersSupportOtherTotals Indirect factory wages40%30%10%20%100% Other manufacturing overhead30%10%0%60%100% Selling and administrative expense0%25%40%35%100% a. victimisation the results of the interviews, race out the first-stage allocation of costs to the activity cost pools. Producing Processing Customer UnitsOrdersSupportOtherTotals Indirect factory wages $ S S $ SOther manufacturing overhead Selling and administrative expense.. Total overhead cost $$ $___ ___ $ $__ ____ Chapter 7 b. Using the results of the first-stage allocation, compute the activity rates for each of the activity cost pools. (Activity rates are not computed for the ââ¬Å"Otherââ¬Â activity cost pool because these costs lead not be allocated to products or customers. ) Co mputation of Activity RatesActivity Cost Pools Total CostTotal ActivityActivity Rate Producing units $ machine-hours $ per machine-hour Processing orders $ orders $ per order Customer support $ customers $per customer c. Data concerning genius of the companys products are listed below: Product W562 Selling price$100 Annual sales (units)1,000 signal materials per unit$24 Direct labor per unit$6 Machine-hours per unit1. 5 Orders processed80 Using the activity rates you derived in part (b) above and the above data, compute the core amount of overìhead cost that would be allocated to product W562.Overhead Cost of Product W562 Activity Cost PoolsActivity RateActivityABC Cost Producing units$per machine-hourmachine-hours$ Processing orders$per orderorders Customer support$per customerNot applicable Total $__________ d. Using the data developed above for product W562, complete the following report. Product bankââ¬Product W562 Sales$ Costs: Direct materials$ Direct labor Producing units Processing orders ________ Product margin $_______________\r\n'
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