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What is the amount of direct materials cost incurred by LP Production:
Cost AmountAdvertising-------------------------- $7,500Assembly line workers wages--- $33,800Depreciation-Machinery---------- $2,800Factory utilities--------------------- $9,120Machinery repairs & maintenance- $4,400Front office salaries---------------- $20,560Raw materials------------------------ $79,800Production supervisor salaries--- $48,750
Compute the number of gizmos needed to break even under present price and cost conditions. Compute how many units would have to be sold to meet the profit target for each of suggested options
Recognize a product or service in your organization which could use ABC. You can as well use this technique for selling and administrative costs.
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates:
Your company has developed the drug called Matrox that is an effective treatment for migraine headaches. You have just discovered that it can also be employed for organ transplant patients to reduce risk of organ rejection.
What are the components of a budget? Are they same for every organization? Why or why not? Should every organization forecast its operating budget? Why or why not?
Compute the predetermined fixed overhead application rate that would be used in March. Compute the number of machine hours that would be allowed for actual March production. Compute the fixed overhead applied to work in process during March.
Browning, which employs a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly during manufacturing. The information which follows relates to the period just ended:
Why would a business like UPS or eBay be concerned with looking at contribution margin by market segment? Can you recognize kinds of market segments?
Petty Petroleum, Inc. uses various chemicals to manufacture its products. Variance data for last month for three primary chemicals used in production are as follows (F indicates a favorable variance; U indicates an unfavorable variance):
Calculate profit of each center if company uses the direct allocation method. Calculate the profit of each center if the company allocates cost center 1 first and then cost center 2
Babbel Company is a manufacturing firm that uses the job-order costing. The company's inventory balances were as follows the the beginning of the year
What relevant costs might you consider in deciding whether to accept the order at reduced selling price? What costs would you not consider when making your decision? Why are these costs not relevant?
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