Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Hornsby Manufacturing has four categories of overheads. The four categories and the expected overhead costs for each category for next year are as follows: Maintenance $140,000 Materials handling 60,000 Set-ups 50,000 Inspection 100,000 Currently, overheads are applied using a predetermined overhead rate based upon budgeted direct labour hours. For next year, 50,000 direct labour hours are budgeted. The company has been asked to submit a bid for a proposed job. The factory manager feels that obtaining this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 30%. Estimates for the proposed job are as follows: Direct materials $5,000 Direct labour (750 hours) $7,500 Number of materials moves 8 Number of inspections 5 Number of set-ups 3 Number of machine hours 300 In the past, full manufacturing cost has been calculated by allocating overheads using a volume-based cost driver - direct labour hours. The factory manager has heard of a new way of applying overhead that uses cost pools and cost drivers. Expected activity for the four activity-based cost drivers that would be used are as follows: Machine hours 16,000 Material moves 4,000 Set-ups 2,000 Quality inspections 8,000 Required: (A) (i) Verify the amount of overheads that would be allocated to the proposed job if direct labour hours are used as the volume-based cost driver. (ii) verifythe total cost of the proposed job. (iii)) verify the company's bid if the bid is based upon full manufacturing cost plus 30%. (B) (i) Verify the amount of overheads that would be applied to the proposed job if activity-based costing is used. (ii) Verify the total cost of the proposed job if activity-based costing is used. (iii) Verify the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30%. (C) Which product costing method produces the more competitive bid? Provide a logical explanation for the difference between the two bid prices.
analyse the methods of capital investment appraisal
what are characteristics of relevant cost?
Yuma foods acquire Aldo's tortillas several years ago. Aldo's continued to operate as an independent company, except that Yuma foods has exclusive authority over capital investment
What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d
Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making
Time sheets are collected in a batch, and the information is manually keyed into the system. This data is now stored on a magnetic disk. An editing program is run, which verifies w
THE GAMES ECONOMISTS PLAY It sounds like a sports fan's dream. In Stockholm on October 11th, three men share a $1m prize for their skill at analyzing games. They are not telev
The case of a fixed discount When evaluating inventory decisions when a fixed discount rate exists, the appropriate procedure is to compare the total costs of the EOQ with the
JIT purchasing arrangements JIT philosophy also extends to adapting JIT purchasing techniques whereby delivery of material immediately precedes their use. By arranging with sup
First Cut Analysis of Costs The allocation of costs and assets will produce a value chain that illustrates graphically the distribution of a firm's costs. It can prove reveali
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