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Bell Company makes fax machines. Currently Bell makes all components of the fax machine in house. An outside company has offered to supply one component, part number B48 for $8 each. Bells uses 15,000 of these components per years. Costs of B48 are as follows.
D.M. $4.00
D.L. 2.00
Variable OH 1.50
Fixed OH 3.00
Assume that fixed overhead is allocated and cannot be avoided. Should Bell purchase the part from the outside supplier and how much will income increase or decrease.
Discuss the similarities and differences between the job order costing and the process costing systems. Identify the types of industries/companies that would use these systems for their organizations and the rationale for their decisions.
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Journalize the transactions for the current year, 2003, using the accounts listed on the financial statements and other appropriate accounts
If I were the controller, I do not agree with Emma and I would proceed with accepting the new order with the present system of allocating the costs to the Grinding department and the price will be fixed on the basis of that costs.
Use variance analysis to explain the causes of the increase in revenue from 2007 to 2008. Show your computations neatly, and clearly label the appropriate variances.
Journalize indicated transactions of Ruby Jewels. Use the periodic inventory system. Explanations are not required.
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