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Baja Industries has recently switched its method of applying manufacturing overhead from a single predetermined overhead rate based on direct labor hours to activity-based costing (ABC). Assume that the direct labor rate is $18.00 per hour and that there were no beginning inventories. The following cost drivers and rates have been developed for allocating manufacturing overhead costs: Activity Cost Driver Rate Material handling Number of parts used $2.00 per part Assembly and inspection Number of direct labor hours $25.00 per DLH Testing Number of units tested $5.00 per unit The following production, costs, and activities occurred during the month of August: Direct Number of Units Produced Material Cost Parts Used Direct Labor Hours 6,400 $208,600 142,000 26,480 (a.) Calculate the total manufacturing cost and the cost per unit for the month of August. (b.) Assume instead that Baja Industries applies manufacturing overhead on the basis of $40.00 per direct labor hours (rather than the ABC method). Calculate the total manufacturing overhead cost applied for the month of August. (c.) Which method of applying overhead do you think provides better information for manufacturing managers?
Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing and using activity-based costing, how much assembly cost is assigned to titanium racquets?
Early in the year we wrote off $65,000 of receivables. Nick, Ray, and I agreed we would lose another $30,000 from the open accounts as of December 31, 20X4. That's reflected in the listing of S&A costs. The allowance for bad debts was just a "squee..
Calculating Profitability Ratios Music Row, Inc. has sales of $32 million, total assets of $43 million, and total debt of $9 million. If the profit margin is 7 percent, what is net income? What is ROA? What is ROE?
company abc has a spending variance of 100000 f and efficiency variance of 100000 f and a volume variance of 300000 f.
Prepare a single well organized report for the General Manager using the data provided. Be sure to include appropriate variance analysis.
Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business.
library research assignmentassuming that you are the controller for a publicly traded company your cfo has asked you
questionon 1st january 2012 john doeby enterprises acquired a 55 interest in bmi inc. bmi. doeby paid for the
Jay sold land (a capital asset) to an unrelated party for $20,000 cash and a 9% note for $100,000 due in two years. His basis in the land was $40,000. Which of the following statements is correct?
Compute the predetermined overhead rate, using direct labor dollars as the allocation base and which are provided in anticipation of the coming accounting period. Using these data, prepare a schedule to determine the cost of one unit of product.
Eliminated completely for next year's budget and fundraising efforts-despite an increase in expenses-did not improve at all.
hirams lakeside is a popular restaurant located on lake washington in seattle. the owner of the restaurant has been
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