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The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing system. Given below are every activity, its cost and its related activity driver.Activity Cost Activity Driver Material Setups $300,000 Number of setupsMaterial handling $250,000 Number of partsCutting $700,000 Number of partsAssembly $600,000 Direct labour hoursFinishing $450,000 Number of unitsThe level of activity for the year is: Lounge PatioUnits to be produced 10,000 5,000Number of Setups 60 60Number of parts per unit 10 5Direct Labour Hours per unit 5 2Needed:Under an activity-based costing system, what is the total cost of patio chairs for the annual?
Std error of the slope (Sb) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. The standard error of ‘
How costs behave as the level of activity/volume changes. Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.
STEPS OF DEVELOPING A COST ESTIMATING RELATIONSHIP Firmly speaking, a CER is not a quantitative method. It is a framework for using suitable quantitative methods to quantify a
PART 1 Carlton Ltd operates at capacity and makes glass-topped dining tables and wooden chairs which are then typically sold as sets of four chairs with one table. However, some c
Describe the Limitations of management accounting: 1. Based on accounting information: the correctness and effectiveness of managerial decisions will depend upon the quality
How might a company use regression results to manage overhead costs?
Compute the equ units of production?
VALUE ADDED STATEMENTS Are intended to show how much wealth or value has been created by the company’s operations and how the wealth has been shared out to interested groups e.
It is a commitment by a bank to lend a specific amount of funds on demand identifies the maximum amount of unsecured credit the bank will allow the customer to borrow at any time.
Scorecard The traditional approach to the monitoring organizational performance has focused on the financial measures and the outcomes. Increasingly, companies are realizing th
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