Unit cost using actual and normal costing

Assignment Help Managerial Accounting
Reference no: EM1349603

Triple Play Sports manufactures baseball gloves. Information related to a recent production period is as follows:

Estimated manufacturing overhead, 2004 = $100,000
Estimated machine hours, 2004 = 4,000
Direct labor cost, October = $5,000
Direct materials cost, October = $5,000
Supervisor's salary, October = $4,000
Factory rent, October = $1,000
Factory utilities, October = $1,000
Indirect materials cost, October = $1,400
Machine hours worked, October = 300

During October, 2,000 gloves were produced

a. Using actual costing, what is the unit cost of one glove produced during October.

b. Using normal costing, with machine hours as the activity base, what is the unit cost of one glove produced during October.

c. If normal costing is used, was manufacturing overhead over or underapplied during September. By how much?

d. What might have caused the amount of overhead applied to be different from the actual amount.

e. Why would managers at Triple Play Sports choose to use normal costing rather than actual costing.

Reference no: EM1349603

Questions Cloud

Describe factors having greater trust in e-business : Describe the factors which would contribute to you having greater trust in e-business. Do you look for trust seals when shopping online?
Conflict resolution management : What do we need to do in order to achieve the knowledge and attain the skills of Conflict Resolution Management
Discuss salary determination in a labor market : Discuss salary determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor.
Use both a component and trigonometric method : Speedy Sue, driving at 33.0 m/s, enters a one-lane tunnel. She then observes a slow-moving van 175 m ahead traveling with velocity 5.10 m/s. Sue applies her brakes but could accelerate only at -2.00 m/s2 because the road is wet. Will there be a co..
Unit cost using actual and normal costing : Triple Play Sports manufactures baseball gloves. Information related to a recent production period is as follows: What might have caused the amount of overhead applied to be different from the actual amount.
Methodological approaches-qualitative and quantitative : Discuss the two methodological approaches, qualitative and quantitative. What do you see as the main differences between these two approaches?
Show conflict resolution style : Conflict Resolution Style - Explain what style do you typically use to deal with conflict?
Find net income and investment base : Harbor Company had sales of $1,500,000 for the year ended Dec 31, 2004, an asset turnover ratio is 2 for the same period, and return on investment is six percent.
Illustrate entry barriers exist in the fast food industry : Illustrate the entry barriers exist in the fast food industry. Compute the labor participation rate: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150.

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  Computation of break-even from cvp formula

Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $660.00; how many tickets must be sold to reach break-even?

  Write about the financial statement analysis

Write about Best buy about their Financial Statement Analysis

  Preparing list of all product components

Suppose that your team is going to form the company that will manufacture chocolate chip cookies. The team is responsible for preparing list of all product components and costs necessary to make this product.

  Utilization of managerial accounting in operational planning

Rebecca owns several successful coffeehouses. Each one has its own manger and is operated independently of the others. In what ways do the coffeehouses utilize managerial accounting in the operational planning process?

  Baker plumbing fixtures-target costing

uppose the company decides that only 1,400 units can be sold at a price of $5,000 and, therefore, the target cost cannot be reached. The company is considering. dropping the steam feature, which adds $600 of variable cost per unit. With this featu..

  Advises the payroll department

The payroll bank account is reconciled by the chief accountant, who also prepares the several quarterly and annual tax reports.

  Preparing budget-top-down and bottom-up approach

Recognize and explain a project where the top-down budgeting approach would be most appropriate. Detail your rationale for decision and list the advantages for using that approach.

  Project’s net present value

In 2010, the Bayside Chemical Company prepared the following analysis of an investment proposal for a new manufacturing facility: . Do you have any suggestions that might increase the project’s net present value? (No calculations are required.)

  Direct and indirect costs of mad dogs

Mad Dog Enterprises manufactures computer game control devices like joysticks and steering wheels. Following is the list of the costs incurred by Mad Dog in 2009:

  Compute cost of production changes

Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by the speed of the workers. Finishing normally waits for work from cutting.

  Describing customer perceived value-total customer benefit

Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer's perception? Explain.

  Summarize the cost management from article

What are the major cost drivers involved in the school's educational process? How do you think the school might attempt to control costs? Describe how the Business School adds value and who receives this value.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd