User Account

All Pages

Determine the cost rate for each setup activity

Assignment Help Accounting Basics
Reference no: EM132051777

Question - The fabrication dept. of Auto Engines, Inc. wants to estimate setup costs for Year 5. The company has determined that its setup costs are batch-related. Relevant data for the past 5 years are:

Annual Setup Costs (Ave.):

Personnel $240,000.00

Other $45,600.00

Number of production runs/Year (Ave) 120

Annual Production Volume (Ave) 48,000

1) Determine the cost rate for each setup activity.

2) In Year 5 the company is planning on reducing the number of production runs by 20% from the previous five years level. Estimate the setup cost for Year 5.

3) Refer to the annual setup costs. Now assume that $45,600 (other setup costs) actually represent the costs of setup equipment.

How would your answers to the above two questions change?

What assumptions did you make with respect to the existing capacity and the increase (decrease) in the number of setups?

Reference no: EM132051777

Questions Cloud

Applicant needing extensive training for the position : When hiring for a new position, should an experienced and skilled applicant be hired instead of an applicant needing extensive training for the position?
How can the aspect of commercial aviation : How can the aspect of commercial aviation have the greatest effect on the U.S. and the global economy?
What areas should be addressed while developing strategies : 1. What areas should be addressed while developing strategies? 2. What would you need to do to implement organisation development activities?
Determine the nature-dimensions of the dilemma : Choose 1 of the ethical dilemmas on the document entitled Ethical Decision Making Paper Scenarios. Read and analyze the chosen scenario.
Determine the cost rate for each setup activity : The fabrication dept. of Auto Engines, Inc. wants to estimate setup costs for Year 5. Determine the cost rate for each setup activity
Why are we looking for premises and conclusions : The park was beautiful, with trees, flowers, and buzzing bees. The bright flashes of the wings of dragonflies were everywhere.
How much should the vendor have received : The vendor prepaid shipping charges of $34.00. The invoice was dated August 29 and was paid on Sepember 24. How much should the vendor have received
How would you characterise the dominant culture of zappos : How would you characterise the dominant culture of Zappos? How easy is this to reinforce or change?
Explain the organisational structure for johnson and johnson : Explain the organisational structure for Johnson and Johnson and how they balance globalisation with local focus when needed?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Utech company bottles and distributes livit a diet soft

utech company bottles and distributes livit a diet soft drink. the beverage is sold for 50 cents per 16-ounce bottle to

  Complete the comparative balance sheet of gilmour company

Complete the comparative balance sheet of Gilmour Company showing the dollar change and the percent change for each item

  Compute the inventory value

compute the inventory value at December 31, 2014, under the dollar-value LIFO method

  Show the balance carried down on january

A company was incorporated on 1st January, 1960, and on that date purchased two machines, each costing £1,000. Depreciation is provided at the rate.

  Compute the total cost of the work in process inventory

Jobs no. 637, 638, and 639 were started during January. Compute the total cost of the work in process inventory on January 31

  Shorter-term cash budgets in general are used primarily for

which of the following statements is most correct?a.the typical actual cash budget will reflect interest on loans and

  Dividends and dividends payable

a) Prepare the entries, if any, on each of the three dividend dates. b) How are dividends and dividends payable reported in the ?nancial statements prepared at December 31?

  Problem on accepting business at a special price

Power Serve Company expects to operate at 85% of productive capacity during April. The total manufacturing costs for April for the production of 37,400.

  Using the following balance sheet and income statement data

using the following balance sheet and income statement data what is the current ratio?current assets 9000 net income

  What specific opportunity costs are you faced with

Do you work in addition to going to school? What specific opportunity costs are you faced with? What are the most important factors in making your decision?

  Amount of accrued liability for compensated absences

What is the amount of the accrued liability for compensated absences that should be reported at December 31, 2005?

  The company amortizes the prior service cost

Palm Company's actuary has computed its prior service cost to be $5,000,000. The company amortizes the prior service cost by the straight line method over the remaining 25 year service life of its active employees.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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