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Question #1
a) List and describe four potential problems with a "traditional" overhead allocation system.
b) List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.
Question #2
a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.
b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?
Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.
Barone Supply bought equipment at a cost of $48,000 on January 2, 1997. It originally had an estimated life of ten years and a salvage value of $8,000. Barone uses the straight-line depreciation method. On December 31, 2000
Plainfield Bakers manufactures and sells the popular line of fat free cookes under name Aunt May's cookies. The process Plainfield employs to manufacturer the cookies is labor-intensive; it relies heavily on direct labor.
Do you believe that internal management accountants possess the degree of skill commonly possessed by outside accountants and auditors? Explain your reasoning.
What is the profitability of Unfocused Books' three departments and what recommendations would you make to the owners?
Production budget in units and direct material usage budget and direct material purchases budget, direct manufacturing labour cost budget
Determine the optimal yearly production plan for the ore processed by the Luna Mining Company and prepare a budgeted income statement before taxes for LMC for 2015, and determine the pretax profit on sales percentage.
Find the right mix of financial and nonfinancial measure to perform multiple tasks and identify appropriate remedial actions to be taken when performance falls short.
ACT 6691, Managerial Accounting Case: - Read the case and analyze the information. Prepare a narrative report (or notes to the income statement) addressing why/how quantitative items were selected. The following items must be explained:
How much profit must Tidbit produce to achieve a 15% return and calculate the revenue per hour that Tidbit must generate to achieve a 15% return.
Clancy Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 8%.
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
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